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Virtual Bookkeeper: A Detailed Guide For Virtual Bookkeeping Service
Bookkeeping is an important aspect of a business. This is because a business that has a firm grip on their finances are in perfect position to compete with the competition, grow and they are also quickly able to adapt to a rapidly changing market trend. However, managing these finances is a complex process which involves recording, reporting and tracking the financials.
More often than not, consistency is very important when it comes to bookkeeping for a business. The bookkeeping process that is not consistent affects a firm to the point that a business query that came weeks ago takes forever to respond. This is where virtual bookkeeping services are efficient in facilitating your companies finances and financial information, making it accurate so you can address business queries efficiently.
Understanding Bookkeeping Service
Bookkeeping is a vast term used to address a range of services. This incorporates performing financial audits, data entry, reconciling bank accounts, processing payments, tax returns, financial reports, etc.
It is important to note that when it comes to tax filing, not all basic bookkeeping accountants can become tax prepares, which requires an IRS Preparer Tax Identification Number (PTIN). Furthermore, not all tax preparers are eligible for (PTIN).
Because of these contrasts, bookkeeping refers to day-to-day financial proceedings tasks of an organization like managing the financial statements, financial transactions, send invoices, payroll, accounts payable, accounts receivable, balance sheet, bill paying, etc. These bookkeeping tasks can be performed by an in-house bookkeeper or the services of a virtual bookkeeper can be hired as well.
This brings us to the question that why is there a need of a virtual bookkeeper when the basic bookkeeper tasks can be performed in-house as well. Well, let’s find the answer to that question.
The need for virtual bookkeeping accounting services
As you know, an in-house bookkeeper can perform basic bookkeeping tasks with ease. The need to hire a virtual bookkeeper exists because of a variety of legit factors, which are discussed below:
Value for money
Incorporating a full time bookkeeper brings a lot of expenses. These can be related to the resources that the bookkeeper will utilize like office equipment, space relevant training etc. Therefore, an in-house bookkeeper is not the best bookkeeping business solution for small businesses and startups. On the contrary, for a growing company, an in-house bookkeeper can be a better choice.
A virtual bookkeeper is normally paid on an hourly basis. This means that you will only be paying for the services you want. This gives the business owners to leverage their funds and allocate the resources elsewhere like on a better accounting software. Additionally, a virtual bookkeeper won’t be using your office resources which is better for streamlining funds where needed and organizing operational costs as well.
Better for efficiency and expansion
An in-house bookkeeper provides the productivity only in their labor hours which might not be able to meet the growing needs of a business that is expanding.
An online bookkeeping services provider provides leverage to the business in terms of the services. A business that experiences a sudden increase in transactions might require a bookkeeper that is actively looking at business proceedings and managing them actively. On the other hand, when a business slows down, a business owner can slow down the operations of a virtual bookkeeper. This means that a remote bookkeeper is better in terms of leveraging the flow of work.
Gateway to streamline a bookkeeper job.
When you hire a bookkeeper on an in-house basis, they can easily perform the normal bookkeeping tasks but might lack some advanced bookkeeping matters like tax preparation, using bookkeeping software like QuickBooks Online, Xero, etc. In this case, you have two choices: either hire additional bookkeepers, which is costly or get the services of a remote accountant, who can sometimes be a CPA ( certified public accountant). CPAs can handle advanced bookkeeping matters professionally and with accuracy.
Remote Bookkeepers are normally more experienced and provide a wide range of services including dealing with tax compliance matters, proficiency in using accounting software’s, etc. These outsourced bookkeepers have worked with a lot of clients in multiple industries which can provide you with expertise that have been tried and tested.
Technologically superior automation
A basic bookkeeper uses manual processes utilizing spreadsheets which can have certain limitations for advanced bookkeeping tasks. These bookkeepers are also not updated with the latest trends and this either means investing in them for training or hiring advanced bookkeeper services.
Outsource remote bookkeepers usually have experience in using the best cloud based accounting software’s like QuickBooks Online, Xero, Drake accounting, etc.
The advantage of using these cloud-based accounting software is the efficiency and accuracy they bring to your business’s finances. This software can easily categorize your financial proceedings, produce simultaneous reports, and even do bank reconciliation, invoice preparation, etc. But knowing how to use them is key. Remote bookkeepers are normally equipped with the skills that are important in using this business accounting software.
Fewer Mistakes and more accuracy
Manual bookkeeping work is often exposed to human errors. This essentially means mistakes made during data entry on spreadsheets, transaction errors, calculation errors, mistakes in terms of categorization of data. This leads to inconsistencies for financial reports, tax penalties leading to audits, etc.
Online accounting, like those using automation, can reduce the risks involved with a live bookkeeper. This streamlined bookkeeping is better for small business owners who have less room for error. As an add-on service, remote bookkeeping also involves cross-checking, which provides an extra layer of satisfaction for a bookkeeping job and is a win-win situation for all business needs.
Final Words
As you can clearly see that a physical bookkeeper is important for businesses with basic financial needs. The need for a virtual bookkeeping needs has arisen due to a requirement for accuracy, efficiency, etc. These virtual bookkeeping business endeavors are address a comprehensive bookkeeping queries. Nowadays, many firms are looking to implement automation in their financial systems where a remote bookkeeper is essential.
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