Bookkeeping has a long and rich history. It dates back to Ancient Rome. Luca Pacioli pioneered double-entry bookkeeping all time. Despite the fact that technology has dominated our lives, bookkeeping is still important.
Virtual bookkeepers are a way for small businesses to save time and money.
What is Virtual Bookkeeping?
Virtual bookkeeping is a way for accountants or bookkeepers to offer their services remotely to clients. Sometimes called remote bookkeeping, virtual bookkeeping is also known as online bookkeeping.
Virtual bookkeeping services are often offered by freelancers via online gig platforms, or by online accounting firms.
What does a virtual bookkeeper do?
It's important to mention what a virtual bookkeeper does while we are discussing virtual bookkeeping. Although virtual bookkeepers are not able to perform the same tasks as those in an office setting, their primary job is to record and summarize all earnings and expenditures as accurately and precisely as possible.
These are the most frequent tasks a virtual Bookkeeper can do.
Every transaction, debit, and credit, must be recorded.Every transaction should be documentedRegularly updating the ledgers in chronological orderDaily banking transactionsStaff payrolls to be issuedTo ensure accuracy in the books, reconcile accountsRegularly delivering financial reports, usually at the end of each monthNotifying management about any financial issues or varianceTaxes and tax returns, if necessaryMonitoring cash flows and the annual company budget
The benefits of hiring a virtual bookkeeper
This is how we would compare the benefits of hiring a virtual bookkeeper to an employee bookkeeper:
While you would pay your employee for a whole year, a virtual bookkeeper can only be paid for the project they are working on.
A virtual bookkeeper is not required to be paid for sick days.
Virtual bookkeepers don't need to worry about "vacation pay" as long as they do their job on time.
Your time is our greatest resource and you don’t need to pay the virtual bookkeepers for lunch, break, or 'playtime. They can simply clock in and go every time they need to do their job.
Depending on your location, you don't usually have to pay for the insurance that covers health and disability to a virtual bookkeeper. This is unlike an employee whose expenses are covered by the company.
Virtual Bookkeeping: Is it worth it?
Virtual bookkeeping is a great option for small businesses as well as bookkeepers. Virtual bookkeeping offers many benefits.
Business owners can now review previous employers and request references to verify the reliability and professionalism of a bookkeeper or accountant who is remote. Both the bookkeeper as well as the business benefit from virtual bookkeeping. Virtual bookkeepers are more motivated to complete their projects on time, so they have more time for the next project. Virtual bookkeeping also has the advantage of being able to work from anywhere, anytime, whether it's at home, in the bar, or at home.
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