Bookkeeping tasks are vulnerable to a company's growth opportunities. Do you recall the days when people used to do bookkeeping tasks manually with pen and paper?
Thanks to technology, we have left those days behind. Now bookkeeping jobs can be easily done using software and tools. Virtual bookkeeping services have also been helping enterprises keep good track of their transactions. There're lots of benefits of virtual bookkeeping services. Today we'll discuss it.
What is Bookkeeping?
Bookkeeping refers to a company’s systematic recording of all financial transactions. It can also mean the various methods of documenting a company's finances. Maintaining up-to-date records of business transactions allows you to project financial reports when necessary.
Many internal and external prospects for business depend on accurate bookkeeping.
For example, your investors may want to have a look at your financial statements before investing in your business.
What is Virtual Bookkeeping?
Virtual bookkeeping means the same tasks as traditional bookkeeping. The only difference is that a virtual bookkeeper is an external employee who may work from home or work for a third party specializing in bookkeeping services. Financial projections and analysis, annual taxes, and compliance needs are some of the common tasks of a virtual bookkeeper.
11 Benefits of Virtual Bookkeeping Services
Virtual bookkeeping services are a cost-effective solution for small businesses. They provide all the benefits of having a full-time bookkeeper without the cost. In addition, virtual bookkeepers are available 24/7, so you can get help whenever you need it.
1. Financial Records
A virtual bookkeeper may take care of all the mundane financial activities that are holding you back from running a successful business.
If you have a virtual assistant who specializes in bookkeeping, they can help you record your financial transactions, keep track of overall expenditures, and eventually reduce the operating cost of your business.
2. Tax Season Stress
During the tax season, all businesses get stressed with a lot of financial activities. You have to count all your expenses and provide an accurate report to the CPAs. You may not be able to handle all the bookkeeping tasks while handling your other business activities. Hiring virtual bookkeeping services during tax season has a big advantage.
3. Error-free Reports
We all know, professionals always do it better. There will be fewer errors when your financial transactions are handled by bookkeeping professionals with ample industry experience. Many businesses can not afford to hire an accountant. Then, some companies are simply wise enough to avoid spending twice as much when a virtual assistant can complete the task.
4. Regulatory and Governing Laws
Employing a virtual bookkeeper ensures that you are constantly adhering to the rules and laws that pertain to financial activities. In addition to this, he also secures all transactional databases in a way that they can be easily accessed and addressed for any legal needs.
5. On-Time Reporting
Usually, virtual bookkeeping services are contract-based. In the contract, they will give you the exact time of your financial reports. Unlike in-house teams, virtual bookkeeping assistants are never late to submit reports. Additionally, when you hire your virtual bookkeeper from a reputed BPO company, they will have backup assistants for your emergency tasks.
6. Access to Digital Bookkeeping Tools
When you hire virtual bookkeeping assistants, you do not have to pay for digital bookkeeping tools. They make the arrangement by themselves, and you will get to use the advantages of modern bookkeeping software.
Access to cloud storage is another perk of using a reputable virtual assistant service. Your information will be readily available to you whenever you need it, no matter where you are.
7. Flexible Payment Option
You can choose to pay your virtual bookkeeper on a per-service basis. In this way, you'll only have to pay for the specific tasks or services you actually require. You can also modify your payment by adding or removing services.
8. Fast Hiring Process
Hiring an in-house accountant may take a long time. On the other hand, you can hire a virtual bookkeeping assistant almost instantly. It will save both your time and energy from conducting an entire hiring process. Virtual bookkeeping assistants are generally trained and certified. They can start working immediately without wasting training time.
9. Reduce Fraudulent Activities
Bookkeeping employees often take advantage of the access they have to company accounts. Companies get puzzled by the misstatements documented by bookkeepers. These kinds of activities cause serious damage to businesses. When you outsource bookkeeping, the service provider company will be responsible for your data. Thus, there will be no fraudulent activities in your bookkeeping.
10. Loan and Insurance Track
Loan and insurance tracking is another amazing benefit of outsourced bookkeeping. You no longer have to sift through piles of emails to figure out how much of your loan is still owed. A virtual bookkeeping assistant will prepare a traceable report for your loads and insurance premiums.
11. Monitor KPIs
Every organization has performance measures for employees. Defining the KPIs is not a difficult task. The complex part is to document the data in actionable formats. Virtual bookkeeping assistants track the daily reports of employees, organize them accordingly, and find the numeric outcome of their KPIs.
Disadvantages of Hiring Virtual Bookkeeping Services
The concept of having a virtual bookkeeping assistant is very useful to many. However, there are some disadvantages too. Let’s take a look.
Data security is a big matter of concern since you will be sharing a lot of your company's crucial data with the virtual bookkeeping assistant. Make sure that you sign a non-disclosure agreement with your virtual assistant before hiring.
For a business owner, one of the major problems with outsourcing is that it gives up control over certain aspects of the company. There is less oversight when things are completed remotely than when they are completed in person.
Communication gaps can be another problem if you hire offshore bookkeeping virtual assistants. Make sure that the service provider has a well-built communication channel.
How Much Do Virtual Bookkeeping Services Cost?
The cost of a virtual assistant depends on the number of tasks assigned to them. A typical virtual assistant in the United States costs from $20-$100. In my previous article, I discussed the details of what the cost of a virtual assistant will be in 2022.
However, the cost of virtual bookkeeping services may be a bit more compared to usual virtual assistants since they require the basics of accounting.
At ASL BPO, the cost of hiring a virtual assistant starts at $6. Get in touch with us to GET YOUR FREE QUOTATION.