It comes as no surprise that bookkeeping and filing taxes are reported as the worst part of owning a business according to 40 percent of small business owners. Running a company takes a lot of work – managing employees, communicating with clients, monitoring and working on projects, marketing and sales efforts, and the dreaded (for many) accounting tasks.
If you’re included in the statistic mentioned above, you’ll be happy to learn that a virtual bookkeeper could save you money, stress, and time.
What is Virtual Bookkeeping?
Virtual bookkeeping, also known as cloud accounting, is when a bookkeeper works remotely using modern technology and online software to organize a business’s finances. Instead of hiring an employee, many digital agencies and other remote businesses, are choosing to bring on a virtual bookkeeper.
These professionals are just as worthy as traditional in-house bookkeepers. A capable bookkeeper has the experience, training, and certifications to complete the same finance-related tasks as an in-house bookkeeper. And they usually end up costing significantly less.
The expense of a virtual bookkeeper is lower than an employee because you don’t have to pay them a full-time salary plus benefits. A virtual bookkeeper is hired and paid based on an agreed-upon package that meets your specific needs.
What Tools Does a Virtual Bookkeeper Use?
When you hire a virtual bookkeeper, expect to use a few online tools to work with them.
1. Cloud Accounting Software
At Every Penny Accounts, we use the premium version of QuickBooks Online. You’ll be able to access your current financial information 24/7 from any device connected to the Internet. Sharing the account enables your bookkeeper to complete accounting tasks without an in-person meeting.
2. Video Chat or Other Communication Platform
Though you won’t need to have your virtual bookkeeper over for coffee, you’ll still need to communicate. These interactions could happen via video chat, email, telephone, or some other secure channel. Our clients who invest in the Premium Accounting Solution Package receive a virtual business review meeting every quarter and full management reporting each month.
3. Document Management
File and document management is another aspect every virtual bookkeeper must address. No one wants to pack up all of their invoices and receipts in a large envelope or box for shipping. As an example, our customers receive a free subscription and training for a secure, paperless expense and receipt processing system.
How Does Virtual Bookkeeping Work?
Putting it all together, let’s take a quick look at what it’s like to work with a virtual bookkeeper once you’ve signed on as a client, completed any necessary paperwork, and expressed your goals.
First, you’ll send your documents by scanning and uploading them to a document management system. Then your bookkeeper will retrieve the files and use them to enter the numbers into the cloud accounting software. From there, the bookkeeper can analyze the data and create financial statements and reports.
Some of the other tasks a virtual bookkeeper may complete for you include:
· Preparing customer invoices
· Collecting payments from customers
· Logging bills from vendors
· Processing payments
· Entering payroll
· Updating banking transactions
· Reconciling bank statements
· And more...
Depending on your arrangement, you’ll then have a meeting or receive notification that the reports are available or the work is completed. It’s a repeating cycle that will continue as long as you are engaging the virtual bookkeeper for their services.
While many virtual bookkeepers only conduct bookkeeping services related to daily operations, at Every Penny Accounts, we also assist with end of year taxes. Learn more about our specific process and packages here.
Why Should You Hire a Virtual Bookkeeper?
As a business owner, you may want to handle everything that you can and cut costs where possible. However, when it comes to finances, you should lose the DIY mentality. Here are a few reasons to hire a virtual bookkeeper:
1. A virtual bookkeeper can help to keep the business on track financially. You can save money on fees and identify leakages by paying for their expert attention to detail. No more worrying about whether you paid an invoice, signed a check, or received a payment from a client. You’ll always have an accurate picture of where your finances stand, making it easier to form sound decisions.
2. You won’t have to worry about scheduling the time to handle bookkeeping tasks. With a virtual bookkeeper, you’ll be able to focus on growing your business. Simply scan your documents and send them off into the cloud. A virtual bookkeeper will give you peace of mind that your finances are in order and enable you to get the answers to any accounting questions you’ve been toiling over.
3. Anyone with an online business will find the transition to a remote bookkeeper quite simple. Since you’re already savvy to the virtual world, you’ll be familiar with a lot of the cloud technology that will be used to work together.
4. Going paperless has more advantages than saving the environment. Online filing systems make finding and organizing much easier, even if you’re not in the office.
5. You will save money on wages. Entrepreneur reports that if you have less than 30 employees, you probably don’t have enough work for a full-time bookkeeper to stay busy. Instead of paying for a full salary, a space for your bookkeeper, and any other software or tools that they’ll need to complete the job, spend a portion of that amount on a virtual bookkeeper.
Get Started with an Experienced Virtual Bookkeeper – Contact Every Penny Accounts
Are you ready to get started with a virtual bookkeeper? Every Penny Accounts offers virtual bookkeeping services, including a bookkeeping overhaul if you’ve gotten a bit behind on your books. Contact us now to get started in making sense of your financial situation.