A virtual bookkeeper provides bookkeeping services to clients online versus in person or by coming to your office. Unlike the traditional in-house bookkeeper who works full-time (or part-time) for one or more companies at their place of business, a virtual bookkeeper operates remotely and interacts with clients through e-mail, telephone, chat channels, or any other online means of communication.
Virtual Bookkeeper Advantages
There are several key reasons why a business might choose to hire a virtual bookkeeper rather than an in-house employee:
Cost Savings
You can realise cost savings when working with an virtual bookkeeper. When you have an employee full-time or part-time you will be paying for down-time, breaks, vacation, sick time as well as employer tax contributions and benefits. Virtual Bookkeepers typically charge a flat fee for service, some charge per hour, but either way you are just paying for your bookkeeping not everything else.
Access to Specialized Expertise
A virtual bookkeeping firm is an organization that hires bookkeepers and accountants who have specialized in different subfields. This means that businesses can receive high level professional support in accounting, advisory and consultancy services that is tuned to their industry and need on an on-demand basis. An in-house bookkeeper may not have the specialist knowledge in a particular area.
Improved Efficiency
Virtual bookkeepers are well-acquainted with the use of cloud-based accounting platforms. Because they work virtually they have become experts on the tools and can build efficiancies for faster turn around on reports and financial information. It may mean faster operations and overall business decision-making based on real-time information over and above what an in-house generalist bookkeeper can offer.
Scalability
An outsourced bookkeeping team can quickly scale up or down depending on the volume of business of the company. This flexibility is difficult to replicate when managing an in-house resource such as an employee. In this manner, it is possible to scale up or down your scope of work and the resources needed.
Major Services Offered by a Virtual Bookkeeper
Some of the typical services they provide include:
– Accounts payable and accounts receivable entry
– Payroll processing
– Record expenses and record revenues
– Reconciling banking and credit card accounts
– Monthly closing and financial statements are some of our team’s critical deliverables.
– Determining of sales tax and making payments.
– Billing and invoicing
In essence, virtually any type of bookkeeping need that can be performed in a business can be efficiently done by a virtual bookkeeper. Advanced virtual firms also provide the controller services of the higher level of accounting and CFO services and budgeting, forecasting and strategy.
Software Platforms Used
To conduct their operations virtually, virtual bookkeepers use different applications and tools for accounting and teamwork.
Some examples include:
– QuickBooks Online (QBO) – QBO is the number one online bookkeeping software for small business in Canada.
– Xero – Xero is a popular online bookkeeping software (much like QBO). It started in Australia and is gaining traction in North America.
– Dext – Dext is a great tool for capturing your receipts to enhance receipt management. It includes basic expense report management as well.
– QBTime – A time tracking and scheduling tool that works hand in hand with the payroll.
Virtual Bookkeeping Firm Selection Criteria
If you think a virtual bookkeeper would be a good fit for your business needs, here are some tips on evaluating firms to find the right match:
– Reviewing online profiles – Some firms offer detailed profile information about backgrounds and specialties.
– Talk about your current issues – Select an accounting firm that can effectively deal with the difficulties you are facing at the moment.
– Consider the industry focus – Some firms may offer services for particular industries such as e-commerce, construction, etc.
– Inquire about information security – This should encompass facets such as encryption, backup among other aspects.
– See what services are included – Packages, their prices, and the number of training hours that come with them might significantly differ between firms.
– Verify the reviews and testimonials of the clients.
The right virtual bookkeeping firm becomes a critical component of your business. It helps you save time and energy to focus on other essential things. Invest time to choose carefully so you get the right team that suits your need and financial capability.