The internet can be used to do everything in today’s digital world. Online shopping, online training in fitness, or even balancing your chakras, all can be done online. You can also hire a virtual bookkeeper.
You might be able to get rid of all your bookkeeping responsibilities with virtual bookkeeping or accounting services. You can use the time you have spent on repetitive tasks like journal entries in general ledgers to grow your business.
Virtual bookkeeping (remote accounting) can have both advantages and disadvantages. Let’s look at virtual bookkeeping and decide if it is a good fit for you.
What’s virtual bookkeeping and how does it work?
Virtual bookkeepers handle your bookkeeping remotely. They may not be in your immediate area, or in the same time zone. Bookkeeping software manages all communication and financial records. Your virtual bookkeeper will organize your transactions and provide financial reports for your company.
Virtual bookkeeping is a full-time job. Although they have clients, your bookkeeper is always available to answer questions or discuss your money. You can get the same level of communication as a full-time bookkeeper with a flexible schedule at a fraction of the cost.
What are some of the benefits of hiring a virtual bookkeeper?
A virtual bookkeeper will be of great benefit to you if:
- Doing your own bookkeeping is a waste of time and energy.
- You need help to bring your finances up-to-date.
- Next year’s tax season should be easier than previous ones.
- Keep track of all expenses to be able to deduct them from your tax returns.
- You have been paying accountants for them to review your books at the end of the year in order to submit your taxes.
- It is impossible to know how much your company makes each month, or how much cash it has.
- Virtual bookkeeping is a great option if your company deals primarily with digital transactions. Although virtual bookkeeping can handle monetary transactions, it is easier to categorize digital transactions (e.g. Shopify, Paypal, and debit transactions).
Virtual bookkeeping vs. local bookkeeping
There are two choices when it comes to bookkeeping: local or virtual.
- Small businesses have always chosen local bookkeepers as their first choice. You used to hire a local bookkeeper, whether a self-employed person or a corporation. Once a month, send your financial transaction records to them. They’d then handle all the data.
- Virtual bookkeepers can now use the same software as local ones. The software allows bookkeepers to automatically record transactions and categorize them. They can also generate financial reports through synchronization with their bank accounts or credit cards.
- You might find that meeting with your local accountant once in a while is enough to do the job. Because both virtual and local bookkeepers are increasingly similar in terms both of services and delivery methods, There are some differences.
Types Of Virtual Bookkeepers
Virtual bookkeeping solutions can be divided into two types: services and freelancers.
Upwork is a site that allows freelancers to be hired. Because bookkeepers don’t have to be certified by law, they can have a broad range of skills and education.
Off-the-shelf accounting is required to help your virtual bookkeeper sort out any transactions that aren’t clear.
Virtual accounting services can often offer you a team of bookkeepers to assist you with your bookkeeping (like My Count Solutions).
Virtual services are more sophisticated than individual freelancers. Because they usually have whole teams, you won’t need to worry about your bookkeeper going on a vacation or becoming sick. Many of them have more advanced capabilities such as specialized apps.
My Count Solutions connects to your credit card accounts to automatically pull transactions. We then classify each transaction and create gleaming financial reports for you. We also offer a simple platform that provides basic dashboards and reports to help you keep track of your money.
You can contact your bookkeeper if you have any questions or need to upload documents.