what is virtual bookkeeping

As technology continues to advance, Virtual Bookkeeping will likely become increasingly common in the accounting industry. Virtual bookkeeping is a game-changer for small businesses, where every penny counts, and time is a precious commodity. Owners and staff can focus on core operations while their finances are managed by experts—no more late nights reconciling accounts or struggling to decipher complex financial reports. With virtual bookkeeping, you can finally return to doing what you do best – running your business. You can securely link your bank accounts, credit cards, and other financial platforms to your virtual bookkeeper’s software. Transactions automatically flow in, categorized, and reconciled with laser precision by combining AI-powered automation and human expertise.

what is virtual bookkeeping

Hiring a virtual bookkeeper give you more flexibility and lowers your costs, too. Every business owner sooner or later reaches the point when investing in bookkeeping services can no longer be avoided. However, that doesn’t have to be a hassle because you can hire a virtual bookkeeper and get it all done without leaving your office space. Like traditional on-site bookkeepers, virtual bookkeepers manage day-to-day financial tasks like recording transactions, reconciling bank and credit card accounts, and processing payroll. For virtual bookkeeping businesses, these tools can make the process more efficient and make the workload steadier throughout the month.

The benefits of being an outsource bookkeeping service

Small business owners and solo entrepreneurs may take on bookkeeping tasks themselves, but it can cost a lot in effort and time away from the heart of their business. With their Wave Advisor service, Wave promises to handle your bookkeeping for you, using their free cloud-based accounting software. While pricing starts at $149 per month, it may be difficult to predict how much Wave bookkeeping will cost your business. There are no publically available pricing tiers—you’ll have to book a call with Wave to get a quote. The Wave suite of apps manages tasks like invoicing, payroll, and accounting/bookkeeping for small business owners. In a nutshell, when a company hires a virtual bookkeeper, they give the bookkeeper (you!) remote access to their bookkeeping software, and financial documents.

what is virtual bookkeeping

Keep a robust data security policy in place for employees, and plan for disaster ahead of time. By taking precautions and having actionable steps for when something does happen, https://www.bookstime.com/ you will be able to prevent large-scale damage to your company. Providing stipends for employee equipment can help everyone gain access to the tools they need to work remotely.

Features of Virtual Bookkeeping

Pilot Tax experts help you stay on track by making sure you stay ahead of deadlines and making tax filing super easy. Are you a small business owner looking for ways to save time and money on your accounting? It’s an increasingly popular approach to handling financial data, offering the accuracy of traditional bookkeeping processes while freeing up valuable hours in your schedule. Virtual bookkeeping transcends physical limitations, operating entirely online. A team of highly skilled bookkeepers with robust bookkeeping software manage your finances remotely, accessible from anywhere, anytime. Think of it as having a dedicated financial wingman – invisible yet ever-present, handling your financial chores meticulously.

However, while onsite bookkeeping has benefits, it can have severe limitations — particularly for startups. Virtual bookkeeping services benefit your business by giving you access to thousands of accounting professionals who can stay on top of your books without ever stepping foot in your office. In-house teams use it to streamline their processes — data entry, bill payment, budget management, and more.

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In more traditional bookkeeping services, it was more of a process to get reports out. Someone had to be there to run the report, save it in the right format and send it out. In this age of cloud accounting and virtual bookkeeping services, they should be able to have reports sent to you on a schedule. At my company, one of the specific things we teach accountants and bookkeepers who want to run a virtual bookkeeping service is that they should specialize in a few industries. It’s especially true of virtual bookkeepers, however, because this will determine if the apps they use to do business are relevant to and compatible with your business.

If the bookkeeper is working as an independent contractor, she will invoice the business for the services performed and the client will remit payment in accordance to its contractor payment policy. Financial Post indicated in 2020 that virtual bookkeeper salary for skilled independent contractors what is virtual bookkeeping was around ​$60​ per hour. Choosing bookkeeping software that is cloud-based, user-friendly, and capable of handling all the tasks your clients might need is essential. Bookkeeping will continue to be untethered from physical limitations, with a global talent pool at your fingertips.

Tools to streamline bookkeeping services

Today, virtual bookkeepers are more strategic about using cloud-based accounting software to let stakeholders (the small business owners) see data on mobile and from any location. When people talk about virtual bookkeeping, they are usually referring to online bookkeeping services. Or an outsourced contractor that helps with monitoring individual accounts, filing taxes, and preparing financial statements, and more.