The rapid advance in technological progress has made businesses consider using a virtual bookkeeping service. Virtual bookkeeping allows an accountant to provide accounting services for a client remotely. Telecommuting positions are becoming more common as companies seek creative and interesting ways to balance out staffing requirements and workload.
It allows accountants to telecommute instead of physically working at an office. A virtual bookkeeper uses computerized accounting software to post financial transactions, review and update statements, and reconcile accounts. This kind of arrangement can be beneficial to both the firm and the accountant, in terms of cost and flexibility.
To facilitate virtual bookkeeping, the company grants the accountant remote access to its server, software, and financial documents. The accountant signs on to the company’s secure network from a home computer and accesses the documents, after which the bookkeeping software gets installed on the home computer.
Either party can purchase and register the software, but both must use the same program and version to ensure proper transfer and communication of the files. Accountants employed by the firm as independent service providers have to invoice the business for services delivered, and the client has to remit the payment in accordance with the contractor payment policy.
For some businesses, the idea of a virtual bookkeeping service is foreign and scary, while for others, remote bookkeeping is just not feasible. Businesses that entertain this idea can soon realize the benefits of using such a service.
The important benefits of virtual bookkeeping services are:
Cost savings:
Virtual bookkeepers help businesses save a significant amount of money when compared to in-house accountants. Bookkeepers who work remotely will be able to offer part-time services that meet business needs. They will be contract employees, so the company heads don’t have to worry about paying payroll taxes, vacation time and other benefits. Most remote bookkeepers are qualified and offer low prices for their services which means they must have several clients in order to make a living. An established bookkeeping service will have numerous clients, years of experience and a talented team of bookkeepers. The business will not only save money but also get an efficient team to help them run their business.
Flexibility:
Remote bookkeepers are very flexible with their schedules. They don’t have specific office hours but offer constant customer support. They make themselves available at the company’s convenience. They work around the preferred timings of the business. In addition, the client gets a team of bookkeepers and not just one individual. If a team member gets sick, an additional member steps in to ensure the business runs smoothly.
Data Backup:
One of the important jobs a virtual bookkeeper performs is keeping data secure and accessible. They use cloud hosting to keep data backed up, secure and accessible to all the necessary members in the company. The burden of backing up data is no longer the company’s responsibility and will be covered by the accountants.
Focus:
The biggest benefit of using a virtual bookkeeping service is that the heads can concentrate on the core areas of the business and let someone else handle the bookkeeping. They will get access to updated and accurate financial reports when they need them. They can use these financial statements to help make key business decisions.
With all the technology and expertise at their disposal, companies can save a lot of money if they hire virtual accountants. As long as the work is completed by the specified deadline, the accountants are free to work autonomously on their tasks. There is no disruption of work on either side and a strong business relationship is developed.