Virtual bookkeeping is the practice of outsourced bookkeeping services where accounting tasks can be completed remotely. When you work with a virtual bookkeeper, you can ensure your finances are managed  using cloud based accounting software in real time, streamlining operations and enhancing efficiency along the way in a cost effective manner.

Virtual bookkeeping services are arranged   with a trusted partner. In this post, we’ll further explain the key benefits of virtual bookkeeping, how it works, tools used to streamline such services, trends, and how a trusted partner like Graphite Financial can help.

What is Virtual Bookkeeping?

Virtual bookkeeping differs from traditional bookkeeping in a few notable ways. For starters, virtual bookkeeping is done with  an external partner, which can come with significant cost savings versus hiring an in-house accountant or bookkeeper to manage your finances, something that can be especially important for startups. Virtual bookkeeping is a service offering.

Additionally, since bookkeeping is performed virtually and data is stored in the cloud, it’s easy for your startup to access this data at any point in time to make smarter decisions more quickly. Conventional bookkeeping likely uses software or physical books, and it can be much more of a process to access such data based on where it’s being documented. The cloud can help streamline this.

Benefits of Virtual Bookkeeping

Are you curious if virtual bookkeeping is right for your business? Consider the benefits of virtual bookkeeping:

• It saves time: Time is money – and there are only so many hours in a day. Any means you can take to streamline certain processes or work with experienced external experts will only allow you to work more on growing and building your business and worry less about some of the necessary tasks you have to complete. Bookkeeping is one such task that you can delegate out to a virtual bookkeeper, freeing up more time and resources to allow you and your employees to focus on what you’re best at.
• It can save money: It’s often much more expensive to bring a bookkeeper in-house than it is to partner with an outside professional for such services. This cost savings can be two-fold when you also consider the previous benefit of saving time. This is especially relevant to startup businesses that are still in growth mode and might not have the financial resources to dedicate to an in-house professional.
• You’ll have direct access to professionals: Hiring a virtual bookkeeper ensures that you’re working with a qualified professional that you can trust to handle your finances. Bookkeeping is an essential task that has to be done. Working with a virtual bookkeeper can help give you peace of mind that it’s being done correctly, while providing you with all the key data and metrics you need to know to run your operations.

Other key benefits of virtual bookkeeping include flexibility and the ability for such services to scale with your business as it grows over time. There’s also the opportunity to incorporate automation into such practices to enhance accuracy and reliability.

How Virtual Bookkeeping Works

A virtual bookkeeper is someone who works independently of the business that you hire for your bookkeeping and accounting services. A good virtual bookkeeper will work with you and upload  all of your company’s invoices, receipts and other financial information into digital, cloud-based platforms to make it easier to keep any records up to date. 

Tools to Streamline Bookkeeping Services

Some of the most common tools that are used in virtual bookkeeping include QuickBooks and Xero. QuickBooks was initially released in 1992 as a robust accounting software package for small and medium-sized businesses. Today, it has advanced to a point where it incorporates artificial intelligence and automation to further enhance accuracy and reduce the likelihood of errors. Xero is another popular software designed to integrate the bank, accountant, bookkeeper and other business matters in one place.

Cloud-based tools are crucial for streamlining productivity because they can permit data to be accessed anywhere there’s an internet connection. Rather than searching for a physical book or file, data can be shared and viewed from anywhere in the world.

Virtual Bookkeeping vs Onsite Bookkeeping

Virtual bookkeeping is much more streamlined than the old methods of bookkeeping, which can be helpful for startups. Before cloud computing gained significant traction, businesses would have to keep physical records of invoices and receipts and either log all the data themselves or deliver them to a hired bookkeeper at the end of each day. Now, thanks to cloud computing and advanced software, they can be uploaded with the click of a few buttons.

Aside from ease of use and convenience, virtual bookkeeping permits broader access to information and expert professionals.

Considerations for Businesses

If you’re considering making the switch to virtual bookkeeping, it’s important to do your homework. Some considerations you’ll want to weigh include:

• Whether or not your business is best suited for a virtual bookkeeping approach to its accounting and finances. Businesses of various sizes – from startups to large firms – and that operate in various industries may find it difficult to make the switch, underscoring the importance of weighing the proper fit.
• If your business is a good fit, it’s important to find the right partner. Look for a partner that isn’t just a qualified bookkeeper, but that also has experience in your specific industry. The more a provider understands your industry and any unique requirements that your business has, the better overall service you’re likely to receive.
• Familiarize yourself with the common software and tools that virtual bookkeepers use and make sure that you’re comfortable with any programs.
• Check to see if any value-added services come with the switch. Outside of basic bookkeeping, services like bill pay, document management, invoice automation and more may be offered by a specific provider.

Who Should Use Virtual Bookkeeping Services?

From startups to large firms, just about any company can benefit from the services that a virtual bookkeeping business can provide. However, some types of businesses are better suited than others to take advantage of all of what a virtual bookkeeper can offer.

For example, startups are one type of business that can particularly benefit from using a virtual bookkeeper – both from a cost-effective standpoint and by outsourcing these types of specialty services so that employees can dedicate more focus to growing and developing their own business. Additionally, accounting for startups can be difficult and there may be a need to comply with certain standards and regulations, which virtual bookkeeping can help with.

Aside from startups, several other types of businesses can particularly benefit from virtual bookkeeping. This includes SaaS companies, businesses with complex accounting models and businesses with multiple locations. The specialized financial reporting and compliance assistance that helps define virtual bookkeeping can go a long way toward helping businesses with unique needs.

Current and Future Trends in Virtual Bookkeeping

As technology improves, so does the scope of how things are accomplished. Virtual bookkeeping is no exception. In fact, virtual bookkeeping was born out of a major technological innovation – cloud computing – and this accounting practice continues to evolve with technology. For example, current technological trends such as artificial intelligence, machine learning and automation are further streamlining bookkeeping processes and helping to minimize user error. Such advances also allow for repetitive tasks to be replaced with advanced software, allowing everyone to work faster and smarter, but not necessarily harder. In the case of AI, you may even be eligible for a tax credit.

Take Control of Your Finances with Virtual Bookkeeping

If you’re ready to take control of your finances and bring them to a new, more streamlined level, then virtual bookkeeping is for you – and Graphite Financial’s virtual bookkeeping services can help. When you partner with a firm like Graphite Financial, you can rest assured that you’re working with experienced professionals who have your best interests at heart. Our accountants make sure they understand your business and any unique needs so we can provide the best bookkeeping service possible.

For more information on Graphite Financial’s virtual bookkeeping services, contact us today or schedule a consultation. We offer various price points to best suit your needs and your budget. Contact us today to learn more and get started.

FAQs

What is virtual bookkeeping?

Virtual bookkeeping is the practice of outsourced bookkeeping services where accounting tasks can be completed remotely. This practice allows businesses to manage all of their finances using cloud-based software in real time, streamlining operations and enhancing efficiency along the way.

How does virtual bookkeeping differ from traditional bookkeeping?

Virtual bookkeeping and traditional, or onsite bookkeeping, have some stark differences. For starters, virtual bookkeeping tends to be much more cost-effective, flexible and scalable compared to onsite bookkeeping. Think of it in this context: With onsite bookkeeping, it’s a practice of manually logging data into software that’s on a computer that can be accessed from that computer. With virtual bookkeeping, your outsourced partner is doing the work for you. It’s a much more streamlined process.

What are the benefits of virtual bookkeeping for small businesses?

Startups and small businesses are two types of businesses that can particularly benefit from virtual bookkeeping services. Some of the key benefits involve cost savings by outsourcing accounting services to a trusted provider, thereby allowing employees to be able to focus more on growing and developing the business. Another key benefit of virtual bookkeeping for startups is peace of mind that any complexities will be properly managed.

What tools and software are commonly used in virtual bookkeeping?

Some of the common tools and software used include the likes of QuickBooks, Xero and Bill.com. As technology has improved, these programs have also improved. Today, they’re incorporating artificial intelligence, machine learning and automation into their programs to become more advanced and further advance the bookkeeping practice.

How secure is virtual bookkeeping?

There’s always a risk with anything on the cloud, but the good news is that virtual bookkeeping is generally safe – so long as you work with a reputable provider. Such providers tend to use only encrypted cloud-based software to store and manage financial data, and this often consists of multiple layers of security measures to help safeguard against threats like data breaches and cyber crimes. If you’re concerned about the security of your virtual bookkeeping, the best thing you can do is take up any concerns with your current provider and consider selecting one that you’re more comfortable with if there are any concerns.

How do I choose the right virtual bookkeeping service for my business?

Choosing the right virtual bookkeeping service isn’t unlike how you’d make any other type of big decision regarding your business – you want to find the right fit. Select a bookkeeper who’s experienced and who knows the industry that you’re operating in and any unique accounting requirements. You’ll also want to ensure you’re comfortable with whomever you’re hiring from a personal perspective as well. It’s as much about fit as it is about expertise when you’re selecting a virtual bookkeeping service or provider. Take the time to find the right one.