In the world of accounting for small businesses, virtual bookkeeping services are becoming more and more common. Bookkeepers who travel to meet with clients are becoming more of an exception than the norm.
What is Virtual Bookkeeping?
Virtual bookkeeping, or cloud accounting, is when a bookkeeper or accountant works with a client from afar, which is made possible with accounting software that lets you and your bookkeeper share an account.
With a shared account, your bookkeeper can post your financial transactions, review and update your statements, reconcile your accounts, and do other important accounting tasks without having to meet with you in person. In this case, both the accountant and the business must use the same accounting software so that files can be sent and received correctly.
How Does Virtual Bookkeeping Work?
Working with clients who are far away can be hard, but new technology has made it possible. Here are some examples of apps that can be used to work with virtual clients:
- Online QuickBooks
- G Suite, which includes GoogleDocs
The Benefits of a Virtual Bookkeeper
As a business owner, you can save money by using a virtual bookkeeper instead of hiring someone local to work on-site. As a contractor, the bookkeeper can be paid as little or as much as the business needs. Additional benefits include but are not limited to:
- Less overhead costs due to fewer employees in-office
- Virtual bookkeepers offer flexible hours
- More time to focus on growing your business
- Up-to-date books
- Accurate financial reporting for your business
The Costs of an In-Office Full-Time Bookkeeper
A good bookkeeper is important for the financial health of any business. A bookkeeper keeps track of financial changes, updates statements, and makes sure that financial records are correct, among other things. They also might:
- Put all financial transactions into the right software
- Accounts receivable (A/R) – The receiving of cash, checks, and vouchers and writing them down as well as keeping track of each account for the clients of the business
- Accounts payable (A/P) – Bills that need to be paid and managed
- Reports, like income statements and balance sheets
- Bank and credit card statements are examples of financial records that need to be reconciled or “balanced”
- Costs (called “debits”) and income (called “credits”) need to be put into the right software program
- Manage payroll
Without a doubt, every business needs a good bookkeeper. Many business owners can’t afford to hire a full-time bookkeeper, which is a shame. The Bureau of Labor Statistics says that a bookkeeper’s average annual salary is just over $42 thousand, which does not take into account the other costs that come with having a full-time employee, like benefits, paid time off, workers’ compensation insurance, and payroll taxes.
The Costs of a Virtual Bookkeeper
There are a lot of things to consider when hiring your virtual bookkeeper. One of the number one benefits of a virtual bookkeeper is the cost. Here at BizVA, our assistance will allow 70% savings to your business by using one of our flat-rate virtual assistants versus hiring an in-office employee.
Everything is included in the agreed-upon hourly rate for our Business Virtual Assistant services. BizVA doesn’t charge you any setup fees or other hidden costs. No matter what tasks your Bookkeeping Virtual Assistant does, the fee stays the same.
Along with a virtual bookkeeper, accounting software is required for your business to communicate with your assistant, as well as provide them with the necessary information they will need in order to do their daily tasks.
One of the most common accounting software being used in virtual bookkeeping includes QuickBooks Online. For a virtual bookkeeper, it’s easier to get bookkeeping software that works in the cloud. A virtual bookkeeping service will be able to access accounting software on the web or in the cloud from any location. So, the bookkeeping service will be able to do everything that an in-office employee could do and more.
QuickBooks Online is one of the most affordable suites for small businesses. A small business might not be able to spend a lot on accounting software, so the fact that QuickBooks Online is easy to use and cheaper has made it one of the most popular solutions for small businesses.
Accounting done in-house tends to be pretty pricey for a small business. Most of the time, they only need simple bookkeeping tasks like paying bills. At the same time, small businesses may want their virtual assistants to handle basic accounting tasks like accounts payable, bank statements, payroll services, and other financial statements.
Bank Statement Reconciliation
One of the most time-consuming tasks seems to be reconciling the bank statements. With a virtual bookkeeper, you can delegate this task and free up more of your time. With this extra free time in your schedule, you can work on the growth of your business.
Related to the cost of this service, the return is greater. With the time that is freed up on your schedule, the possible growth opportunities for your business are surmountable.
Find out How Much a Virtual Bookkeeper Costs a Business Today
One of the main reasons why many businesses use virtual bookkeeping services is because of the cost. When you hire a bookkeeper as an employee, you usually have to spend hours training them, paying insurance and payroll taxes, giving them benefits, and taking care of other costs.
Many businesses don’t need a full-time bookkeeper, so it doesn’t make sense to pay a salary for one. With a virtual bookkeeper, you can cut the cost of hiring a bookkeeper while still getting expert-level services.
Here at BizVA, our Virtual Assistants can help you free up a lot of your time and eliminate some stress and frustrations when it comes to your business finances. Contact us and start your journey with a Bookkeeper Virtual Assistant!