What is a Virtual Accountant?
When it comes to updating books, a virtual accountant is as good as an accountant working in an in-house setup. The only difference is that these professionals work online.
Even if you hire virtual accountant, they never work in your office. You have to communicate with them online.
How Can a Virtual Accountant Help you?
Virtual accountants have a similar skill set and can execute all your accounting tasks as your in-house accountant would.
Virtual accountants can streamline your cash flow by:
- Setting up your accounting system
- Updating your books with the latest financial transactions
- Helping you make data-driven business decisions
Accounts Payable and Accounts Receivable
You can also hire a virtual accountant to keep an eye on your accounts payable and receivable processes and help you manage cash flow.
For many small businesses, it is more affordable to hire virtual accountant than invest in an in-house setup. It helps them reduce costs as they do not have to spend on hiring, employee salary and benefits, hardware, software, Etc.
Hire Virtual Accounting Services for Your Small Business
However, you will be better off hiring a virtual accounting services company for your small business. It gives you access to their entire team of virtual accountants and bookkeepers.
The benefit is that these professionals are used to juggle the workload among themselves. So, even in a busy tax season, the chances are that they will execute your accounting within the deadline and accurately. It means you do not have to pay any fines or penalties.
Virtual accounting services company provide general accounting services to small businesses at very affordable costs. Well, they can afford to do so. They work online and do not have to spend on expenses like building, buying or renting an office in the business district.
Virtual accounting services can:
- Promptly process accounts receivable or the due payments from your customers
- Process and pay accounts payable or the dues you owe to your suppliers and vendors as per deadline
- Prepare and submit financial statements like income and expense reports and general ledger reports to draw your attention to the business' financial health
- Reconcile bank accounts with the transaction entries in your books
- Set up accounting software systems for you
- Help in data migration
Depending on your needs, you can also ask them for accounting customised solutions.
Selecting a Virtual Bookkeeping Services Firm
It is easy to find a tonne of virtual accounting services online. However, selecting the best or the right one for your small business is not an easy task.
You have to shortlist them depending on your business needs and their accounting solutions, prices, and reputation.
'Trustworthiness' is the main criterion. You must ensure they are trustworthy before sharing your sensitive financial data with them.
To shortlist them, you must validate and know a few things, like:
- Read online customer reviews and testimonials
- Judge the negative and positive sentiments before shortlisting a firm you can rely on
- Contact them and discuss your accounting needs
- Verify their ability to provide you with quality output within deadlines
- Know the data security systems, processes and other measures they have in place
- Check if they are insured against a data breach or theft and can compensate you for your loss
- Ask business owners you know about their experiences and whether to hire virtual accountant or a virtual accounting services firm
Do You Really Need Virtual Accounting Services?
You should hire an in-house accountant if you have issues trusting a third-party provider with your business' financial data.
If you trust professionals, hire virtual accountant or virtual accounting services firm. The latter option, as you can guess, will help you save money and time and reduce workload.