What Is Virtual Bookkeeping? Everything You Need to Know

Every business owner sooner or later reaches the point when investing in bookkeeping services can no longer be avoided. However, that doesn’t have to be a hassle because you can hire a virtual bookkeeper and get it all done without leaving your office space. Let’s explain virtual bookkeeping and how businesses can benefit from it.

What Is Virtual Bookkeeping?

An average small business owner thinks that hiring a bookkeeper brings a lot of regular visits to traditional bookkeepers with their own brick-and-mortar office space, which can be a hassle and a huge waste of time. However, a professional bookkeeper can also be found online. 

Virtual bookkeepers are becoming increasingly popular, which is not a surprise considering how convenient (for both sides) online bookkeeping service is. A virtual bookkeeping company does everything that your regular brick-and-mortar bookkeeping firm does.

From recording your business’s daily transactions, cash flow management, and processing payroll to taking care of taxes, general ledger, credits, debits, financial data, and everything your local bookkeeper used to do – remote bookkeepers can do precisely the same, just without being physically there.

How Virtual Bookkeeping Service Works?

The name implies that this type of bookkeeping is done virtually (online), meaning that it doesn’t require the physical presence of a bookkeeper. So when a small business owner hires a virtual bookkeeper, they will give them online access to their books. 

Every virtual bookkeeping business uses cloud-based bookkeeping or accounting software for handling everything remotely, like Lessaccounting.com. Still, there are a few other ways to connect to the company’s computer and books. 

Think about it as your outsourced virtual assistant that takes care of every financial statement, payroll service, and everything you’re not an expert at, allowing you to focus more on growing your small business.

What Do Virtual Bookkeepers Do?

Virtual bookkeeping services can cover almost all the bookkeeping needs of any business. However, not every business has the same requirements and needs, depending on size, cash flow, etc. Some of the essential duties of a virtual bookkeeper include the following:

• Balance sheets,
• Income statements,
• Cash flow statements,
• Financial reports,
• Tracking payments,
• Accounts payable,
• Accounts receivable,
• Payroll reconciliations.

How Do You Communicate With Your Virtual Bookkeeper?

Although, as a client, you won’t be speaking with your bookkeeper face-to-face, at least not in person, there are so many different ways in which you can communicate about every single online bookkeeping task they need to take care of. 

Virtual bookkeepers are not robots. Each of them is a certified public bookkeeper who knows how to do their job responsibly. Usually, all online bookkeeping services have their preferred mode of communication with a client, which includes one of, or a combination, of these:

• Emails, 
• Phone calls,
• Document collab apps (Dropbox, Google Drive, etc.),
• Video call platforms (Google Hangouts, Zoom, Skype, etc.),
• Online messaging (Slack, Google Chat, etc.).

What Are the Benefits of Virtual Bookkeeping?

Ever since the pandemic changed how we live and work, many companies have started offering their services online, so people have become more comfortable dealing with things virtually rather than in person. The differences between on-site and remote working are small to non existing, but the benefits are significant, let’s have a look:

• It’s more cost-effective because you don’t have to hire a full-time bookkeeper. You’re only paying for specific tasks you want your online bookkeeper to perform, meaning you can continue doing things independently.
• You can get the best bookkeepers in the industry instead of settling for your local bookkeeper. Distance is no longer a parameter you should consider when searching for someone to take care of your books.
• Hiring an unbiased virtual bookkeeper who isn’t interested in your business reduces the risk of fraud. Therefore you’ll avoid the conflict of interests and ensure your books are in safe hands.
• You will get more time to focus on growing your business, and there’s no need to train someone from your team to learn how to track monthly expenses or to do it all on your own.
• Your books will be up to date at all times if you rely on a virtual bookkeeping service to handle your monthly bookkeeping needs.
• You get greater flexibility when it comes to who you want to hire and which services they will provide, as well as time management.

Which Businesses Should Switch to Virtual Bookkeeping?

There are no limitations when it comes to the size or type of a business, so whether it’s a small or large company, they can all benefit from virtual bookkeeping services, but small businesses in particular. 

This change saves them precious time and funds which can be used for future growth. Additionally, doing everything digitally is not only environmentally friendly but also cost-effective. Although paper-based bookkeeping is still very popular, it has higher chances of errors that are hard to notice and harmful to a business.

Any business owner or entrepreneur wanting to simplify things and make them more convenient shouldn’t hesitate to go digital and paperless. It is easier to get comfortable with some online tools than with having to take care of your books.

Is Virtual Bookkeeping the Right Choice for Your Business?

There is no reason to postpone the decision to go digital and change the way you do business. However, many prefer sticking to the good old pen and paper and traditional ways of doing things, but if you want to keep up with time, you shouldn’t be afraid to modernize how your business functions. If you still have doubts, you can always reach out to LessAccounting, the most reliable provider of remote bookkeeping services, to find the optimal solution for your business and start a new chapter in your book.