Bookkeeping is the foundation of every business tax-related and accounting operation. For this reason, efficient and precise bookkeeping is indispensable. But unfortunately, it can be a tedious and time-consuming task. Plus, a minor error can cost your business a lot. You can, however, delegate the duty to a virtual bookkeeper as you concentrate on other tasks like sales, marketing, and production.
So, what are the benefits of hiring a virtual bookkeeper? Below I will discuss how modern bookkeeping can help your business, whether small or large.
What Is a Virtual Bookkeeper?
Virtual bookkeepers have the same skill set as in-house bookkeepers. In addition, they have adequate experience in handling bookkeeping and related services. In fact, it's easier to find a virtual bookkeeper who offers specialized services relevant to your type of business.
The primary difference between physical and virtual bookkeepers lies in communication style and location. A virtual bookkeeper can be stationed within your state or another country. Their location isn't a significant concern as long as they understand your state's financial regulations and tax laws.
A remote bookkeeper's location or traveling schedule doesn't affect their service delivery. Rather than meeting in person, you will connect with them via email, online meeting, or phone.
Why Work With a Remote Bookkeeper?
Regardless of the type and size of your business, having an effective and correct bookkeeping system is a must. Poor bookkeeping and financial services are among the primary reasons for business failure. When you lose track of your financial operations, you lose your business.
Bookkeeping services require experience and time- things your business may not have. Virtual bookkeeping comes in handy if you want to manage your accounting books perfectly without sacrificing resources and time. Some of the advantages of virtual bookkeeping include:
1. Saves Money
Modern bookkeeping isn't another big expense; instead, you will save a significant amount of money in the long run.
Working with an in-house bookkeeper is quite expensive. First, you must pay a monthly salary that ranges between $40,000 to $54,000 per year. Besides the salary, you will also pay for extra working hours and offer employee benefits and bonuses. In addition, a physical bookkeeper requires an office, meaning you will have to pay for infrastructure. Typically, having an in-house bookkeeping department can drain your business finances.
On the other hand, when you hire a remote bookkeeper, you only pay for the services offered. You can regulate the overall cost by removing or adding services and allocating working hours when necessary. For instance, your businesses may need a bookkeeper more during tax season or for particular projects. You simply outsource a virtual bookkeeper and pay for the specific services.
2. Cloud Software and Sharing Eliminates Paperwork
While it's hard to do away with physical receipts, invoices, and other documents, it's time to let go. More and more businesses are going paperless; they email documents or upload them on their customer portal.
With modern bookkeeping, you email digital documents to your remote bookkeeper or store them in a shared drive like Google docs or Dropbox. If you share your login details, your virtual bookkeeper can also access the documents directly from your business accounts.
By using cloud software, you can access all your business financial reports at your convenience. Plus, your virtual bookkeeper can view your latest financial records anytime-this saves everyone's time, especially during tax season.
3. You Can Find a Good Fit for Your Business
Your options are limited if you choose to only work with an in-house bookkeeper, particularly if your business has unique needs. For instance, you might not come across many experienced local bookkeepers familiar with the winery business.
In contrast, you have hundreds if not thousands of options with remote bookkeeping; you can never miss one that understands your business niche. In addition, finding a bookkeeper with a great personality is also essential for your business. For instance, the right bookkeeper should offer information helpfully and respectfully and be available when you need feedback.
4. Remote Bookkeepers Are Flexible
Most in-house bookkeepers work under tight schedules and within certain hours. Unfortunately, this means that you cannot access their services beyond their working hours.
However, remote bookkeepers are flexible and available round the clock. You can reach out outside regular business hours or even on weekends in case of an emergency. In addition, you can negotiate with your bookkeeper to find the best working hours.
Virtual bookkeepers offer a variety of services. You can add or down the services depending on your business needs. As a result, it's possible to adjust your bookkeeping budget while still receiving the level of services your business requires during specific seasons.
5. Enhances Post-Catastrophe Recovery
Remote bookkeepers offer off-site booking systems. They will store, track and organize your vital financial data on secure cloud platforms. This off-site system is an important asset, mainly when accidents occur. For instance, if floods, storms, or fire damages your office, your business documents remain safe.
6. Promotes Your Business
If you run a small business, you probably have one accountant who handles all financial-related tasks, from tax filing to preparing financial books. Sadly, an overworked accountant may not have time to learn the latest accounting trends that may benefit your company.
Therefore, when you invest in remote bookkeeping, you will free up time for your local accountant and allow them to focus on other accounting and financial aspects of your business.
In the long run, your accountant will evaluate different investment options, find ways to cut costs and run a market analysis to promote your company adequately.
7. Fraud-Less and Unbiased Services
A local bookkeeper may have personal interests in your business's financial affairs. For instance, the bookkeeper may alter the expense report by adding extra spending on personal use. You might not detect fraud, especially if you aren't conversant with bookkeeping.
To avoid such scenarios, invest in remote bookkeeping services since virtual bookkeepers have no direct interest in your accounting books.
Additionally, off-site bookkeepers counter-check details before sending the financial reports to their clients. There is no chance of fraud or errors in remote bookkeeping.
Outsourcing bookkeeping services is becoming the new normal with each passing year, especially now when businesses are still responding to the impact of COVID 19. It's no longer reasonable to pay salaries when you can access affordable remote bookkeepers.
Now is a perfect time to seize the chance to shift to modern bookkeeping. Click here to get started today!