Virtual bookkeeping is a way for an accountant or bookkeeper remotely to offer accounting services to a client. A virtual bookkeeper can telecommute to work for clients instead of working in their office. Except for the difference in work location, there are no significant differences between regular and virtual bookkeeping services. Virtual bookkeepers use computerized bookkeeping software for financial transactions, reviewing and updating statements, and reconciling accounts.
How it works
The business gives remote access to its software, server, and financial documents to enable virtual bookkeeping. The bookkeeper logs onto the company’s secure network via his home computer. He can access the documents the same way he would if logged on to an office computer. The arrangement may allow either the worker or client to purchase and register the software. However, both must use the same version and program to ensure that files are properly transferred and communicated.
If the bookkeeper works for the company, her salary will be determined by the cycle and policies of the employer. Independent contractors will invoice the company for services rendered. The client will then remit payment according to its contractor payment policy.
Employer Benefits
Because of its cost savings and flexibility, a virtual bookkeeper might be attractive to a company. Employers can save a lot of money by having virtual bookkeepers work from home. They don’t need office space, supplies, or insurance. Contractors also do not have to pay employment taxes, benefits, or any other insurance. Flexible availability is a benefit for virtual bookkeepers. They can work as little as required by the business, or as often as needed. This can be particularly beneficial for small businesses that may not require a full-time bookkeeper or have fluctuating financial needs.
Bookkeeper Benefits
For many reasons, accountants and bookkeepers might choose to work remotely. Most workers love the flexibility of working remotely, especially parents or people with disabilities. The bookkeeper can work independently as long as the work is done by the deadline specified by the client. Another benefit is the possibility of not having to travel for work. This can help bookkeepers save money on gas, car maintenance, and child care. Ambitious virtual bookkeepers might choose to work for multiple clients.
Step-by-Step Guide
This is the definitive guide to learning how to become a bookkeeper.
Step 1 – Back to Basics
The following will provide basic knowledge in bookkeeping:
- Inserting details of financial transactions on a debit or credit sheet
- Issuing invoices
- Payments for bills
- Preparing monthly financial statements
- Prepare a summary of transactions
- These skills can be learned by learning through experience and by trying things out.
Step 2: Register Your Bookkeeping Business
Although it is not required to open a virtual bookkeeping company, it will add legitimacy to your business. This extra legitimacy will help clients feel more confident in your ability to handle their financial transactions and records.
Depending on your preference, you can either register your business solely or as a private corporation.
You must also have a way to ensure your client’s financial information is secure and kept private.
Many countries have strict privacy laws regarding sensitive, personal, and financial data. This is an added benefit that you can offer your clients if you can demonstrate to them that you are aware and take their privacy seriously.
Step 3 – Let’s Tell the World!
After you have all the information you need to start a virtual bookkeeping company, it’s time to let everyone know that you are ready to go.
This is possible by:
- Update your LinkedIn Profile
- Tell your friends on Instagram and Facebook
- To increase awareness of your business and skills, write a few bookkeeping articles that include useful tips.
- You should be looking for small businesses. To find out if they need bookkeeping services, you can contact them.
- To inform the public about the services you offer, create a website for your virtual business in bookkeeping.
Conclusion
As businesses look for creative ways to balance their workloads and staffing requirements, telecommuting is becoming more popular. Both the business as well as the bookkeeper can benefit from a virtual bookkeeping arrangement. It is flexible and affordable