Virtual Bookkeeping

Bookkeeping has a long history of its own from Ancient Rome, to Luca Pacioli innovating double-entry bookkeeping forever. Yet, today technology has invaded everything around us, bookkeeping is not left behind.
In fact, nowadays small businesses can save time and money by hiring what is known as virtual bookkeepers.
 
Image Credit: Kvkirilov /Getty Images
What Is Virtual Bookkeeping?
Virtual bookkeeping allows an accountant or a bookkeeper to provide their services to their clients, remotely. Virtual bookkeeping is sometimes called online bookkeeping or remote bookkeeping.
Virtual bookkeeping service is often provided either by freelancers through online gig platforms or online accounting firms.
Virtual bookkeeping is highly convenient for both employers and bookkeepers since it creates huge flexibility. It also allows businesses to reduce their accounting costs as they can keep a balance in staffing and arranging workloads.
 
Image Credit: Peshkov /Getty Images
How Does Virtual Bookkeeping Work?
In order for a bookkeeper to do their job, businesses must give access to their servers and their accounting software. The bookkeeper needs to collect all the financial documents such as bank statements and receipts from the employer so that they can complete the bookkeeping task assigned to them. As we live in a world that is heading towards a more “working from home” mindset, bookkeepers tended to work from their computer at home rather than in the office.
Usually, both parties must use the same means of communication and workflow tools to avoid any confusion and keep track of the work progress. Small business accounting software like Quickbooks Online and Xero are cloud-based apps. If the employer uses either of them, the bookkeeper should be proficient to use that software.
Sometimes the company will provide all the necessary equipment, tools, and software to the bookkeeper to complete the work, and other times the accountant can simply clock in at his personal computer, complete the job and send the financial reports to the employer through email.
Compensation for the work can still be as wage or fees paid for the service. If a virtual bookkeeper is hired as a remote working employee by the company, the compensation is the same as wages paid to the regular employees. If the bookkeeper works as a freelancer, then they have the freedom to set their own schedule and pricing for their services.
How Much Do Virtual Bookkeepers Charge?
Virtual bookkeepers often give a free consultation to their potential clients to evaluate the workload, problems, and services and then able to generate a quote. When it comes to freelance virtual bookkeepers, the pricing might vary depending on the experience and skill level. It may also depend on how complicated the work is.
Some of them might even have a fixed hourly charge from $25 per hour up to $200 per hour depending on their knowledge and experience. Others might offer packages for their services that might range from $250 up to $1000 a month depending on their experience and the volume of the project you want to get done.
You can always negotiate payment terms with bookkeepers as their prices vary from one to another. This is true especially when you are working with a group of virtual bookkeepers or accountants that have different tasks. Some bookkeepers may offer accounts receivable and payable services while others prefer cash-based bookkeeping which includes data entry, categorizing expenses, bank reconciliation, and financial statement preparation based on bank statements.
What Does a Virtual Bookkeeper do?
While covering a topic about virtual bookkeeping, it’s worth mentioning what a virtual bookkeeper does. Virtual bookkeepers may not be able to do things that have to be done physically in an office environment, but their main job is to document and summarize every earning and spending as neatly and meticulously as possible.
These are the most common tasks you can expect a virtual bookkeeper to do;
Recording every transaction, both credits, and debits.
Documenting receipts for every transaction
Updating the ledgers regularly in chronological order
Processing daily banking activities
Issuing payrolls for staffs
Reconciling accounts to assure the accuracy of the books
Delivering financial reports regularly, usually every end of the month
Notifying management of every finance issues and variance
Paying taxes and taking care of tax returns if needed
Monitoring cash flows and annual company budget