What’s a virtual accounting firm and how does it work?
If you think a virtual accounting firm is the next version of traditional accounting firms and is not for you, then you are “Wrong!” Let us first get to what is a virtual accounting firm.
A virtual accounting firm is an accounting firm that works online. It provides the same services that you expect from a traditional one.
So, what is the benefit to you?
You can hire a virtual accounting services provider at much cheaper rates. It means saving on overhead and compliance costs. However, keep in mind that they work remotely.
How does a virtual accounting firm work?
A virtual accounting firm differs from bricks-and-mortar accounting firms, which have a physical address that you can visit to discuss your needs with their owners or account managers. It means you cannot meet a virtual accountant in person.
Communicating with the virtual accounting firm
You communicate and conclude all your business with a virtual accounting firm online. You discuss and convey all your accounting needs to them via a phone or video call. You can also use emails or online chat for the purpose.
Collaborating with virtual accounting services firm
Virtual accounting firms use cloud accounting software to digitise your business' financial transactions. The data is stored online securely. They give you access to this data so that you can use it at any time from any place.
As an accounting firm, you can also outsource your client's accounting work to a virtual accounting firm. Your clients to can also access their data any time and from anywhere. Virtual accounting allows you to maximise your efficiency by choosing a provider who can work when you are asleep.
- You send your client’s task at the end of your working day.
- Your virtual accounting services provider works during their daytime and processes these tasks.
- • They then send the output to you to use during the following working day.
What about data security?
Cloud computing is a secure environment. The data that the cloud accounting software transmits to and receives from you is encrypted. Only authorised persons with the correct login information can access it. It helps keep your sensitive financial data secure.
Your data is also backed up on the cloud servers, which are located across continents. So, it stays accessible, even if a natural disaster strikes at one location.
Do I need virtual accounting services?
Setting up and maintaining an in-house accounting set is costly. Employee salary, benefits, and human resource management costs. Your accountant may also not have the specific skills and experience. In addition, it also means spending on computers, office space, Etc.
You get to eliminate all these expenses by hiring a virtual accounting firm. You save by paying for what you get.
Your virtual accounting firm takes care of bookkeeping, accounting, taxation, financial reporting, Etc. It gives you access to accountants when you cannot affordan in-house accountant. It provides you with experts during tax season.