Virtual Bookkeeping: What It Is & How to Get Started in 2023

Whether it’s retail, healthcare, or manufacturing, virtual bookkeepers can tailor their services to meet the unique needs of different businesses. This specialization ensures that financial records are managed accurately and according to industry-specific regulations and best practices. When hiring an in-house service, small business owners are limited to the bookkeepers and accountants available in the local area. If the business grows rapidly or suddenly has a short-term need for additional help, they might not be able to find the right person for the job. It could be there simply isn’t anyone in the area with the required skills, or perhaps the bookkeeper’s fees are just too high. When a business instead opts for virtual bookkeeping services, there’s a much larger team of professionals who can take on the work as needed.

Bookkeepers tend to be pretty good at accounting, have good math and basic computer skills. A virtual bookkeeper allows firms both large and small to get expert record-keeping with greater flexibility and reduced cost. A virtual bookkeeper helps companies https://www.bookstime.com/ stay on financial track, understand their bigger financial picture, and decide where to spend money. Any business owner or entrepreneur wanting to simplify things and make them more convenient shouldn’t hesitate to go digital and paperless.

Virtual Bookkeeping vs Local Bookkeeping

Essentially, virtual bookkeepers do everything an on-site bookkeeper does, but it’s done remotely. A virtual bookkeeper, or remote bookkeeper, is a great way to get professional help with your books without leaving your home or office. When you need help, you can speak to your bookkeeper over the phone or one-way video chat.

Preparing a business plan is essential for everyone should do before they start a business. Missing deadlines, inefficiencies, and lack of accuracy can plague on-site bookkeepers — but not you. Maybe you’ve been looking around for home business ideas — and that’s why you’re here. You can always connect with a bookkeeper via message or video chat for personalized help. So they’re likely to have received a formal education or be a Certified Public Accountant (CPA).

Can I hire a bookkeeper instead of an accountant?

If you’ve been thinking about becoming a bookkeeper, now’s the time to start. There are minimal start-up costs, flexible working hours, room for growth, and pay ranges from $20 to $40/hour. This start-to-finish course is designed for beginners in mind, and will give you the confidence and skills required to launch your virtual bookkeeping business. Are you a small business owner looking for ways to save time and money on your accounting?

Virtual bookkeeping, also known as online bookkeeping or cloud bookkeeping, refers to the process of managing financial records and transactions remotely using digital tools and software. As a company grows, the in-house accounting and bookkeeping department will be forced to grow as well to keep up with the demand of the increased business. A virtual bookkeeping company will have the tools to scale services as a company grows so that there is no disruption during a period of growth. It will alleviate a business from having to search and pay to expand its in-person team while having access to an abundance of add on services.

How many hours a week do virtual bookkeepers work?

If they are using different software and tools, you should figure out why and use that to determine if you really want to work with them. We’ll assign you a team of QuickBooks-certified bookkeepers, which means you’ll receive the consistency you need to keep your clients happy and your accounting needs remote bookkeeping streamlined. SBOs are usually attending to so many fires on a day-to-day basis that it can be difficult to plan ahead for  invoicing and other accounting needs. That can leave them feeling stressed when they realize they need to get the task done pronto and appreciative of that instant service.

• I think the best way to tell when you should bring on a virtual bookkeeper is to assess how much time you are spending each week on your businesses bookkeeping, and whether that time can be spent more productively.
• Besides from all the time you’ll save by outsourcing your bookkeeping, another plus point is you won’t have to worry whether it’s being done correctly.
• So there is no room for error as a single wrong number can throw off all the work that you’ve already done, and make things difficult for your client.
• Virtual bookkeeping, also known as cloud accounting, is when a bookkeeper or accountant works with their client remotely.
• Other businesses employ both bookkeepers and accountants — or one person who takes care of both their bookkeeping and accounting.

Freelancers operate from their own point of view when it comes to earning with online bookkeeping when they should be looking from the client’s perspective. Now that you have the foundation laid, you can start working towards a thriving bookkeeping business. Accounting software may also save time because of features like automation, and it provides a secure location for the owner to store crucial papers and receipts that can be accessed at any time. So, pay attention to these two tools, make some changes if necessary, and especially if you are serious about becoming a remote bookkeeper. Make sure to go above and above for your initial customers if you’re serious about developing and having bookkeeping jobs from home. Hey, once your business takes off, you may even need a virtual bookkeeping assistant.

However, some situations may still require the verification of original physical documents, such as receipts or invoices. In such cases, online bookkeeping may involve additional steps to ensure the accuracy and validity of the information. In today’s digital age, businesses are constantly seeking innovative solutions to streamline their operations and improve efficiency. Terms, conditions, pricing, special features, and service and support options subject to change without notice.

You can start using the tool for free and still get the team’s 24/7 support to make sure you are tax-ready at all times with up-to-date and accurate financial reports. The cost of virtual bookkeeping services varies based on the needs of the business and experience of the bookkeeper, but the general range is from $20 to $40/hour. An accountant may perform all the same tasks as a bookkeeper plus additional advisory responsibilities. In addition to data entry and reconciliation, an accountant provides key financial statements to business owners and stakeholders. Those include profit-and-loss statements, balance sheets, and anything else a business owner might need to do their taxes. These days, we live in an on-demand economy and thrive on being connected on the go.