Outsourcing accounting services has increasingly become a common trend for today's businesses. Virtual accounting is the newest outsourced method which is cost effective and efficient. Technology has made virtual accounting very easy and is really helpful for companies nowadays.
During this pandemic, more and more companies are hiring cloud based virtual accountants for their accounting related services. You’ll enjoy accurate financial reporting at your convenient time. You’ll get instant 24X7 accesses to financial data to make business decisions and more.
What is Virtual Accounting?
Virtual accounting is an online platform with the use of technology that allows experienced and qualified accountants to offer their services to businesses virtually. Enabled by the online collaboration skills and internet, it consists of a team of virtual accountants offering online Virtual accounting services instead of working at the client’s office.
The following are the ways where virtual accounting can help your business:
Maintain Accounting Competence:
When the company is looking to expand it’s accounting department, there is no delay in training their accountants because of virtual accounting benefits. Internal accounting requires to hire and train new bookkeepers and accountants to meet the needs of the company on the company’s accounting procedures. While an outsourced accounting firm handles its own staffing and training. They have an experienced team with them who can handle accounting needs immediately. When the third-party hires new employees, they have the financial expertise to hire at speed.
2. A virtual accounting department adjusts to your staffing needs:
Businesses using virtual accounting have full control over their finances but they have the benefit of getting only the accounting work they need, nothing more or nothing less. An outsourced virtual accounting department can integrate with the company’s internal accounting department to create a blended solution.
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3. Lowers the business costs:
Hiring a full time accountant can be expensive for the business. In addition to a monthly salary, you need to train them and provide employment benefits. Now, with Virtual Accountants, you only need to pay for the accounting services rendered by them. This is a major cost saver especially for the startups and small businesses who do not have the budget to hire experienced and qualified bookkeepers and accountants.
4. Provides you with the latest financial data:
Every business requires current financial data such as cash flow, inventory, payments and receivables. You need this data at any point of time to make some strategies and business decisions. But with a virtual accountant, you don’t have to wait for this crucial information by your accountant. Virtual accounting services provide real time information. The dashboard is available 24 by 7, that can be instantly viewed for the financial data you are looking for. You don’t have to be a technology or an accounting wizard to view this information on the dashboard. They are easy to use and can be managed by anyone who has basic computer skills.
5. Automates your entire accounting process:
For any business, a full time accountant involves a lot of paperwork and even storing physical files of your tax returns. Virtual accounting companies help automate the entire accounting procedure. They use the latest software tools that are installed in any cloud platform rather than on a local server. They store and share the financial documents that you can access at any time. With the use of automated tools, you can make electronic payments to your employees, vendors as well as generate invoices. This eliminates the hassle of issuing checks and simplifies the payment process.
6. Manage your tax efficiently:
Paying your taxes can be a daunting task especially for small businesses. Additionally, not paying taxes on time can lead to penalties and cause damage to business credibility. Virtual accountants have expertise who manages your taxation virtually and calculate the right amount of tax to be paid. Be it payroll or taxes, virtual accountants are experienced to manage them all. As a business owner, you can focus on core activities to grow and sustain your business without having to concern yourself with tax deadlines. You digitally have easy access to the stored tax returns and other sensitive information using a centralized dashboard.
7. Secures your financial and accounting data:
For any company, their financial and accounting data is of utmost importance and shouldn't land up in the wrong hands. Through the use of technologies, virtual accounting firms store the data on highly secured cloud storage that is protected from all sorts of online threats. This storage data is much safer than storing them on local computers or any physical location of the office.
Sometimes, it can be disruptive to consult and meet with your accountant at the middle of the day to sort out things. Virtual accountants can connect with you at any point of the day at your convenience, saving your valuable time.
More and more businesses are adopting virtual accounting systems to operate their business especially during this coronavirus outbreak. This pandemic has taken a toll on businesses and the economy. Companies are relying more on virtual platforms to get their work done. Be it accounting, meetings, and hiring or team collaboration. Virtual accounting at Ledger Bench helps to keep the track of all financial transactions, control business expenses, taxation, and advisory services and identify opportunities to grow the business.