Virtual positions are becoming more prevalent. This also applies to bookkeeping and accounting. In other words, an accountant or bookkeeper with a virtual bookkeeping job can work remotely to provide accounting services to clients as more companies use cloud-based services to satisfy their demands. Basically, virtual booking finds a balance between responsibilities and workforce arrangements. In terms of flexibility and cost, a virtual bookkeeping agreement might be advantageous for both the company and the bookkeeper. So in this article, we will be discussing all the necessary information you need if you ever want to venture into virtual bookkeeping.<\/p>\n\n\n\n
When a bookkeeper or accountant works with a client remotely, it is referred to as virtual bookkeeping or cloud accounting. Accounting software that enables you and your bookkeeper to share one account makes this possible. With a shared account, your bookkeeper may publish your financial transactions, examine and revise your statements, reconcile your accounts, and carry out other essential accounting tasks without needing to personally interact with you. The accountant and business must use the same accounting software to enable proper file transfer and communication in this setup.<\/p>\n\n\n\n
If the bookkeeper works for the business, she will be compensated in line with the employer’s payroll procedures and cycle. As of 2021, the median annual salary for bookkeepers was $45,560, or $21.90 per hour. If the bookkeeper is employed by the company as an independent contractor, she will issue an invoice to it for the services rendered, and the customer will pay the bill in accordance with its payment policies for contractors. Financial Post reported in 2020 that the average hourly wage for skilled independent contractors working as virtual bookkeepers was $60.<\/p>\n\n\n\n
An organization may find a virtual bookkeeper intriguing due to the cost savings and flexibility offered by this kind of arrangement. Virtual bookkeepers don’t need office space or supplies, and since they’re independent contractors, they don’t need to pay employment taxes, insurance, or benefits. This saves the company a ton of money. For small firms that might not require a full-time on-site bookkeeper or whose demands for financial services change from time to time, virtual bookkeepers offer flexible availability and can work as little or as much as the business requires.<\/p>\n\n\n\n
The distinction between virtual and onsite bookkeeping has gotten blurrier as remote-only and remote-hybrid workspaces have become more popular. Today’s virtual financial teams can provide the same insights and direction as in-person bookkeepers but with more accessibility, quicker turnaround times, and real-time reporting designed to handle issues in any sector.<\/p>\n\n\n\n
All routine bookkeeping tasks, as well as more complex accounting services, including financial projections & analysis, annual taxes, and compliance requirements, can be handled by remote finance teams. Remote bookkeepers can provide a wider range of services by drawing on the expertise of a group of financial experts and AI-driven software that automates computations and accounting tasks.<\/p>\n\n\n\n
You ought to start by inquiring about their application ecosystem. What mobile applications do they utilize to support their services? They require the following standard framework, which is provided by the aforementioned apps, in the following order:<\/p>\n\n\n\n
Even though some of the apps can be different, you’re probably covered if your potential virtual bookkeeping service can handle these five tasks.<\/p>\n\n\n\n
If you use QuickBooks and the virtual bookkeeper uses FreshBooks or Xero, it will be much more difficult to collaborate. As a result, be careful to inquire about the accounting app they use for their company and why. It’s a reasonable inquiry. Find out why they are utilizing various software and tools if they are, and use that information to decide if you actually want to work with them.<\/p>\n\n\n\n
A truly cloud-based company should be leveraging social media aggressively, including a virtual bookkeeping service. They ought to be taking part in forums on Facebook and LinkedIn. They should also be creating material that positions them as thought leaders in addition to this.<\/p>\n\n\n\n
By doing this, you can avoid relying on their assurances that they can fulfill your needs. You won’t have to just take their word for it if they are giving advice that other people find to be helpful. It’s a strong indication that your prospective virtual bookkeeping service will actually benefit your company if they recognize the importance of contributing to the discourse.<\/p>\n\n\n\n
A full-service accounting tool called Bookkeeper360 was created for business owners. You have the option of choosing between a monthly or weekly reconciliation, and like the majority of virtual bookkeeping services, the cost is determined by the monthly expenses of your company and whether you use accrual or cash basis accounting.<\/p>\n\n\n\n
The Bookkeeper360 platform can handle the majority of your back-office tasks and is extremely customizable with a variety of add-ons. Notably, Bookkeeper360 is the only vendor on our list that handles HR and Payroll services in-house (other vendors may supply the service but contract out the work to outside vendors).<\/p>\n\n\n\n
Due to their outstanding reputation for superior customer service, devoted support, and ease of use, Xendoo is our top choice. With the support of a group of bookkeepers and CPAs, Xendoo can bring order to your company’s finances with professional advice and frequent check-ins. Another inexpensive choice that grows with your organization is Xendoo.<\/p>\n\n\n\n
You may get all the services you would anticipate from a virtual accounting solution with Xendoo, including balance sheets, P&L statements, and cash or modified accrual bookkeeping.<\/p>\n\n\n\n
Small businesses and professional service enterprises are the focus of Streamline Bookkeeping, a virtual bookkeeping service. Doctors, lawyers, chiropractors, web designers, architects, consultants, real estate investors, and non-profit organizations are some of the clients who have between one and twenty staff.<\/p>\n\n\n\n
Finaloop’s outstanding customer service, specialized support, and user-friendly platform that fully automates bookkeeping for eCommerce firms make it a top pick. It’s also a wonderful price because full-featured subscriptions start at just $65 per month.<\/p>\n\n\n\n
Both your bookkeeper and your accounting software are replaced by Finaloop. You can get real-time financial reports, tax information, and transaction data on their site.<\/p>\n\n\n\n
BELAY is a business known for its assistants and additionally provides online bookkeeping services. With a wide network of accounting specialists dispersed around the nation, BELAY will: <\/p>\n\n\n\n
BELAY offers a flexible price structure in contrast to other virtual bookkeeping services that lock functionality within systems of tiers. This is especially useful if your needs change over time or if demand varies seasonally.<\/p>\n\n\n\n
A busy entrepreneur hardly has enough time in the day to remember the most basic tasks, let alone remember to drink enough water each day.<\/p>\n\n\n\n
Business owners who try to save money by doing their own bookkeeping run the danger of wasting time and resources that would be better spent expanding their company, which ultimately ends up costing them money in the long term.<\/p>\n\n\n\n
You gain more time and scalability when you can delegate your accounting and finance tasks to a virtual assistant.<\/p>\n\n\n\n
You don’t have to shoulder all the weight anymore. Your financial records are now being maintained by someone else, who is also assisting you with tax season preparation and keeping all invoices and receipts structured and available for your year-end accounting requirements.<\/p>\n\n\n\n
The following bookkeeping activities can be managed by numerous virtual assistants for you:<\/p>\n\n\n\n
Not as horrible as you anticipated, correct? We’ll explore each point’s significance and the reasons why it’s crucial for the success of your bookkeeping firm in the steps that follow.<\/p>\n\n\n\n
You are proficient with numbers, of course. Without it, you couldn’t perform outstanding bookkeeping, right? But before you launch your company, you still need to decide how you’ll finance it. Either self-funding or obtaining a bank loan are options.<\/p>\n\n\n\n
You’ll need to create a business plan in order to determine how you’ll generate revenue as a virtual bookkeeper. Before starting a business, it is imperative that everyone create a business plan.<\/p>\n\n\n\n
When starting a business, you must choose what kind of entity it will be. In the US, there are four typical structures to pick from:<\/p>\n\n\n\n
Many online bookkeepers make a small additional investment in their gear. And with good reason: Having a dependable laptop that makes use of cloud technologies provides you an edge over the competition. Keep in mind that you will be using this technology on a daily basis.<\/p>\n\n\n\n
Join online freelance marketplaces to connect with clients if you’re interested in working as a freelance virtual bookkeeper. Long-term work and brief temporary contracts are both possible in the world of freelancing. They might, however, be less likely to provide possibilities for training or education.<\/p>\n\n\n\n
Many virtual bookkeepers begin their careers with no prior expertise and go on to make up to $80 per hour or more. There is a market for bookkeepers; both small business owners and major enterprises require them.<\/p>\n\n\n\n
There is unquestionably a big demand for virtual bookkeepers right now. Firms are turning to virtual bookkeeping services to manage their accounts as remote labor and online firms grow.<\/p>\n\n\n\n
Because most of their activities can be completed online, bookkeepers frequently work from home. Although some will also offer on-the-job training, employers frequently prefer bookkeepers to have some college education.<\/p>\n\n\n\n
The average annual salary for a virtual bookkeeper in the United States as of May 12, 2023, is $38,761. That comes out to roughly $18.64 an hour, in case you need a quick pay calculator. This is the same as $745 every week or $3,230 per month.<\/p>\n\n\n\n
Understanding bookkeeping responsibilities is the first step in getting certified, followed by learning about licensing and insurance needs.<\/p>\n\n\n\n
I can speak from experience when I say that many virtual bookkeeping services don’t adhere to the best practices outlined above. Simply say no if, after your early encounters, you don’t feel completely satisfied that your prospective virtual bookkeeping service has your back. Keep searching.<\/p>\n\n\n\n
The goal is for your virtual accountant to be a partner who can expand your company economically. As you look for the ideal virtual bookkeeper for your small business, bear that in mind.<\/p>\n\n\n\n