A virtual bookkeeper provides the same services as an in-house bookkeeper. The difference is they work remotely and won’t need a desk in your office. They’re more likely to be an independent contractor than an employee. Some work from home or their own office space. It’s a modern version of this well-established profession in keeping with a recent shift of working from home.

I have some clients for whom I am 100% virtual and some that ask me to come into the office occasionally while doing the bulk of their work from my home office. 

Today’s entrepreneurs and small businesses are no longer limited to the talent they can find close to home. The rise in virtual bookkeeping translates to significant benefits for organizations that may not need an in-house bookkeeper.

Let’s take a look at some advantages of virtual bookkeeping.

Virtual Support is Flexible and Scalable

Virtual bookkeeping allows your business to focus on finding the right person to help, regardless of their location. Rather than being limited to the skill sets of people near you, you can focus on finding the right fit for you and your company. 

Casting a wide net can result in greater flexibility in terms of scheduling and cost. Employers hiring independent contractors are free from the expense and paperwork required for in-house, full-time employees.

Another great benefit of virtual employees is scalability. Depending on how your agreement is structured, you can increase or decrease the scope of services in response to your company’s changing needs. You can bring on new contractors as you get busier or reduce hours when you’re not.

A virtual bookkeeper helps you make moves at your business’s speed. 

Virtual Bookkeepers are Cost-Effective

Virtual bookkeeping typically costs less than employing a person at your company. Many virtual services work from home and have less overhead than companies with a traditional office. Consider common costs employers pay for, like payroll, office space, furniture, technology, office supplies, insurance, workers’ compensation, break time, lunch hours, sick days, holiday parties, etc. 

Those costs add up, and it is something you must budget for if hiring an employee to do your bookkeeping. That’s not a consideration with a virtual bookkeeping service. You pay for specific services over a predetermined period at a fixed rate, and that’s the extent of the relationship.

Finances at Your Fingertips

A virtual bookkeeper needs a way to remotely access all relevant financial documents. Sharing access usually means an online folder of scanned physical receipts, PDFs of bills, and invoices. Shared folders can live on a local server, but better yet, cloud-based software where real-time data updates happen.

Virtual bookkeepers need access (often their own separate login) to the software you use to record financial data for the business. Because virtual bookkeeping services typically work with cloud-based software, it is easy to share data and get answers to your questions quickly. 

Software for a Virtual Bookkeeper

Virtual bookkeeping services need systems to access your financial software and other necessary monetary data. Many bookkeeping services already have these systems and can adapt them to fit your company’s needs. 

QuickBooks Online is a common cloud-based bookkeeping software that can ensure you and your virtual bookkeeper can access the data when needed. Quickbooks even has a mobile app that takes pictures of physical receipts and matches them to expenses for you.

You’ll also need to share invoices, receipts, or bank statements with your virtual bookkeeper. There are secure cloud-based options for sharing those files.

The most commonly used platforms to share and store data in the cloud include Google Drive, Microsoft One Drive, Dropbox, and Apple’s iCloud.

When is it Time to Hire a Virtual Bookkeeper?

If you are already up to your eyeballs in work, it’s a sure sign you need help with the non-revenue generating parts of the business. Put your time where it makes the most money. Doing your own bookkeeping is administrative and not where you make money. 

This statement is especially true if you are struggling with tax filings, and it stresses you out to even think about maintaining the books. Late updates and reconciles can cause problems for your accountant so think about how much your time means and invest in a virtual bookkeeper.

If these are things your company is looking for, a virtual bookkeeper might be the right fit for you.