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what is virtual bookkeeping

Monthly financial reports, payroll services, utilization of bookkeeping software, and much more are handled by a virtual bookkeeping company. Virtual bookkeeping has become increasingly popular remote bookkeeping and it offers exceptional, dedicated services to a business. A virtual bookkeeping company provides service from a remote location – removing the need for an in-house accounting team.

For bigger businesses, the price increases as more hours of work are required. Equivity offers a range of virtual services for businesses—from administrative assistants to paralegals. Their levels of experience and education vary widely—bookkeepers aren’t legally required to have specific credentials. Your bookkeeper has a portfolio of clients they’re working for, but they’re always available for questions or conversations about your finances.

How Do I Become A Virtual Bookkeeper With No Experience?

Virtual bookkeeping services are flexible and can easily adapt to changing business needs. As businesses grow, their accounting requirements may increase, and virtual bookkeepers can scale their services accordingly. Whether it’s expanding the scope of bookkeeping tasks or adjusting the number of hours worked, virtual bookkeepers can accommodate the evolving demands of the business. If a company has multiple locations, it complicates things in the sense that their in-person bookkeeper may need to travel from site to site or they would need multiple bookkeepers. This method is not very time-efficient, plus it can quickly become expensive. With a virtual bookkeeping company, cloud accounting is used, meaning all data and records are stored electronically in secure servers in a remote location.

  • You should think about both your clients’ and your own financial management when choosing an online accounting package.
  • When people talk about virtual bookkeeping, they are usually referring to online bookkeeping services.
  • A virtual bookkeeper today usually works from home (meaning anywhere they can use a computer and connect to the internet), or from their own private office space.
  • Plus, G Suite gives you 30GB Cloud Storage, shared calendars, and access to G Docs, Sheets, Slides, and other office tools.
  • Receiving documents by fax, face-to-face client meetings, paper receipts — all of these are now a thing of the past.

You can upgrade as needed to get more than what you need for basic tax filing. On the basic level, virtual bookkeepers record daily financial transactions for a business, and they do it all remotely instead of working on-site. In some cases, business owners can hire a bookkeeper instead of an accountant. Financial responsibilities vary based on the size of your business, the number of workers you employ, and more.

Step 1: Prioritize Investing In Your Working Tools

Virtual bookkeepers take charge of day-to-day financial transactions, handling critical tasks that are the backbone of a company’s financial records. They meticulously record sales, purchases, expenses, and other financial activities, ensuring that all transactions are accurately documented and categorized. Regular reconciliation of bank accounts ensures that discrepancies are promptly identified and resolved. By efficiently managing financial transactions, virtual bookkeepers provide businesses with clear and up-to-date financial data that serves as the foundation for informed decision-making. Virtual bookkeeping allows a bookkeeper to work from home or their own office instead of physically working at a client’s office. Aside from the work location, there is not much difference between regular bookkeeping services and a virtual arrangement.

Minimally, you’ll need $1,000 to get started if you already have a laptop. This can cover a DIY website and subscription to a bookkeeping software like QuickBooks. As any good bookkeeper knows, one of your primary jobs is making sure your clients’ financial data is safe and secure. That means communicating with them about who should have access to information and how you prioritize security. Bookkeepers are experts at managing the day-to-day finances of a business.

Benefits for Bookkeepers

Virtual bookkeepers maintain accurate and up-to-date financial records throughout the year. This meticulous record-keeping streamlines the tax return preparation process during tax season. Businesses can readily access the necessary financial documents, making tax compliance more efficient and accurate. As a result, virtual bookkeeping minimizes the stress and time spent on tax-related tasks, allowing businesses to meet their tax obligations promptly.

But virtual bookkeeping (also known as remote bookkeeping) comes with drawbacks as well as benefits. Let’s look at how virtual bookkeeping works, then figure out whether it’s a good fit for your business. A big firm just can’t provide the same level of service as a virtual bookkeeper who only works with a handful of clients. A virtual bookkeeper can develop better client relationships and can invest the time needed to fully understand how a business operates and what needs the owner has. When dealing with virtual bookkeepers, you can easily contact them and get them on the phone to answer any questions and inquiries you might have. For big firms even though they have dedicated phone operators, who can answer basic questions, it almost impossible to get the exact bookkeeper who manages your business bookkeeping on the phone.