Are Virtual Bookkeeping Services Meant For Your Business?

traditional vs virtual bookkeeping

You can avoid this by selecting a virtual bookkeeper who charges a fixed monthly fee, rather than an hourly rate, so there are no surprises in your bill. With their support, you’ll be able to allocate your time and resources on other tasks like adding to your product or service line and growing your business. So what exactly are online bookkeeping services and what do online bookkeepers do? Don’t forget to fully use all the amazing virtual tools available to you! The Shoeboxed app is a tailored accounting app for freelancers, accountants, bookkeepers, and small business owners to simplify their accounting and bookkeeping processes. Shoeboxed helps users free their desks and drawers from piles of receipts and turn them into digital, clearly categorized data.

Although both traditional and cloud-based platforms basically serve the same needs, there are massive differences between the two. Let’s discuss how these two concepts differ in the following aspects. Cloud technology provides a secure and flexible platform that accounting professionals can use. It increases efficiency, reduces liability, and optimizes the entire workflow of an accountant. Thought-leadership articles, blogs, case studies on how to optimize operations, makes processes efficient, reduce costs, be future-ready – Stay abreast with our newsletter.

Virtual Bookkeeping Services: What They Do, What They Cost, and How to Get What You Need from Them

In fact, you save money because you’re paying only for the services you need, saving on infrastructure costs, and getting greater value for your dollar. The in-house bookkeeper function only at standard working hours and, if required, overtime where you need to pay extra. But when you hire virtual bookkeeping services, the company promises to complete the work on a fixed date, and they do so as promised. No matter you put in additional tasks, the experts accomplish and deliver the work on time.

What is virtual bookkeeping and accounting?

Virtual Bookkeeping Defined

Virtual bookkeeping allows a bookkeeper to work from home or their own office instead of physically working at a client's office. Aside from the work location, there is not much difference between regular bookkeeping services and a virtual arrangement.

It is becoming quite impossible for all stakeholders to be physically present in a room to collaborate on a project. This also makes it difficult to generate reports, share them with multiple people, and receive all inputs. Virtual bookkeeping allows a bookkeeper to telecommute (i.e. in the cloud) instead of physically working at a client’s office. Aside from the work location, there is not much difference between regular bookkeeping services and a virtual arrangement. There are five things to look out for when you hire a virtual bookkeeper to make sure you’re getting the right level of support for your startup.

The training process becomes easier with virtual bookkeepers.

Many businesses may not hire a Financial Controller because the salary is cost prohibitive. With this function missing, many businesses lack the expertise to prepare, forecast and analyse operating budgets.

  • Your business started as a dream, and now it’s becoming a reality.
  • However, virtual bookkeepers are more likely to offer flexible scheduling.
  • Using computerized accounting, information can be accessed in a matter of minutes.
  • You will work through computer software, such as QuickBooks Online, to share information and data.
  • In the event that you make a cash transaction, you can take a photo of the receipt with your phone and send it to your bookkeepers.

Helene holds a Bachelor of Arts from Fairleigh Dickinson University. cites bookkeeping skills as highly transferable to financial supervisory, analysis or managerial roles.

What Are the Benefits of an Information System in Accounting?

Moreover, software updates and basic maintenance functions are covered in this cost. In this article, we have mentioned some points below that provide insights into how external service-providing experts can bring a significant difference in work operations. Small business ownersare really weary of the money that they spend, that includes the… It’s difficult to manage your business well when you can’t trust your numbers. They can keep you organized and provide the information you need to reduce inefficiencies, increase productivity, and set yourself up for growth.

What are virtual bookkeepers?

Virtual bookkeeping, also known as cloud accounting, is when a bookkeeper or accountant works with their client remotely. This is made possible through accounting software that allows you and your bookkeeper to share an account.

In the traditional bookkeeping format, bookkeeping may be wrong some times. All tasks like writing checks, maintaining inventory, taking care of payroll and tax preparations are managed by bookkeepers and are required to keep those books accurate. A few years ago, there was only one option – Either you need to hire a freelance bookkeeper or a traditional bookkeeping firm. But now with the advent of outsourced bookkeeping services like Mindspace, you will get different options. Ready to explore what a virtual bookkeeper could do for your winery? Protea Financial has a team of experienced bookkeepers who understand the industry and have the skills needed to assist you in all of your bookkeeping needs.

Should You Fire Your Bookkeeper?

Then there is the cost of office space for the person to ensure efficient working. However, in the case of remote bookkeeping services, you only have to pay a pre-decided cost without any additional expenses.

  • They will demand financial reports regularly to find how their investments are handled.
  • When you work with a professional, you can be sure that your books are being kept accurately.
  • In today’s economy, most small business owners are looking to reduce costs and increase profitability.
  • When all your financial information is in one place, it is much easier to keep track of it and ensure that everything is up-to-date.
  • Your bookkeeper might be the first professional you hire to help operate your business.

As stated above, a bookkeeper sets up an accountant for success with an organized and well-balanced chart of accounts, ledgers, and payroll. An accountant will then take all of that data, analyze it and discuss their findings with the business owner on how to proceed in the future. Virtual services also allow you to tear down geographic barriers when it comes to hiring.

Everything About Online Bookkeeping Services

Find out what this role entails, the benefits, and where to find online bookkeeping jobs. Outsourcing your bookkeeping isn’t just more convenient than hiring an in-house accountant. It also helps you distinguish your core business operations from supporting functions like accounting and legal services. This distinction can save you from having to change your business’s status for tax and registration purposes, and can shield you from legal action. In those early months, and even years, it can be difficult to project exactly what you’ll have coming in and what you’ll need to invest to keep your business moving forward. When you’re not sure where your next remittance will come from, a shoebox might look just as useful as a fancy suite of accounting software.

  • You aren’t limited to working with the types of businesses in your geographic area.
  • When hiring a virtual accounting service provider, you have to keep your company’s services and business requirements in mind.
  • If you’ve been falling behind on your bookkeeping, we can get you caught up.
  • Look for a virtual bookkeeper who will track financial transactions and update your accounting software multiple times throughout the week.
  • It takes time for newly joined employees to adapt to a new working environment.

In summary, you can leverage the talent of different skill-levels that are optimized to what your business actually needs. Mindspas provides bookkeeping, payroll processing and tax preparation services to corporate clients in the UK, USA, Australia, and Canada. Our team works with CPA & accounting firms in the USA, UK, Australia, and Canada to provide these services to our clients as outsourcing partners.

Now that we know the advantages of hiring a virtual assistant let’s look at the key tasks you can delegate to them. Do you have that time to lose, especially running a business with a small team? Add to that, accounting is an integral part of the business, and your business cannot afford to function without a bookkeeper for that much time. With the unpredictable state the world is in right now, signing bookkeepers on long-term contracts while not knowing how business is going to be next month can be risky. It’s also unfair to hire a bookkeeper, only to later lay them off when it becomes challenging to meet revenue goals. You only have to pay the subscription fee for the amount of storage space your business needs.

traditional vs virtual bookkeeping

This makes collaboration easy and helps businesses maintain transparency in their functions. Any accounting report or spreadsheet can be shared with multiple people on demand. Along with this, features like multi-person access and approval chains can make collaboration a piece of cake. Financial matters also require discussions, meetings, multiple reviews, and other collaborative efforts. In the case of traditional accounting, collaboration becomes a tough task as all the data is stored at a physical location and can only be transported in a limited manner. Traditional accounting software offers security in a way that it is stored in a specific computer and cannot be accessed by anyone who does not have access to that location or machine. Possibly the newest and most advanced development in accounting is the advent of cloud accounting.

Therefore, we have gone to great pains to guarantee that no one other than the customer can access transactions, passwords, or financial information we use. In addition, our virtual bookkeepers use only the most secure cloud-based traditional vs virtual bookkeeping accounting software such as QuickBooks, FreshBooks, and Xero. In this article, we will break the myths around remote work and discuss in detail the benefits of virtual bookkeeping services for your business.