The way we run a business is changing.
Thanks to the beauty and effectiveness of remote working, it’s no longer necessary to have all your employees working in an expensive office location.
In fact, for many business functions – like finance for example – it’s not even necessary to hire people in-house at all.
The traditional role of an on-site bookkeeper is evolving, with many businesses now opting to take on virtual bookkeepers. But is this shift effective? And most importantly, can it work for your business?
Let’s explore the advantages and potential challenges of hiring a virtual bookkeeper, which we hope will help you make an informed decision for your business.
Bookkeepers play a crucial role in maintaining a company’s financial records. Their job is to ensure accuracy and compliance. They manage transactions, reconcile accounts, and provide critical financial insights.
The accuracy of a bookkeeper’s work is paramount if you want to make informed decisions about where to take your business. Moreover, they’re the person who is going to prevent your business from going into the red and maintain a good degree of financial health.
Does a virtual bookkeeper’s role differ from what is described above? Not at all.
The only difference is that your virtual bookkeeper works remotely and could be based anywhere in the world.
So why hire a virtual bookkeeper in the first place? Why not employ someone in-house?
Hiring someone in-house comes with its own set of complications and expenses. Firstly, recruitment is expensive, and you have to spend all that time conducting interviews in the hopes you’ll find someone who is a good “fit” for your business.
Secondly, hiring someone in-house means that you not only have to pay a monthly salary, but also benefits, insurance, and any other perks your company offers.
Thirdly, what do you do if your bookkeeper goes off sick or needs time off? Who is going to cover them?
Lastly, if you’re a smaller business, you may not even have the need for a full-time or even a part-time bookkeeper. This means you will be paying a salary but won’t be getting the most out of it.
In contrast, a virtual bookkeeper saves you money. You pay a fixed monthly fee for the services and time you need and nothing else. And when your virtual bookkeeper needs time off, the outsourcing company will provide a temporary replacement to cover them.
Let’s take a closer look at why hiring a virtual bookkeeper is so advantageous.
One of the primary advantages of hiring a virtual bookkeeper is cost savings. By working remotely, virtual bookkeepers eliminate the need for physical office space, reducing overhead expenses significantly.
Also, remember that you are paying a monthly fee rather than a salary. That means there are no employee benefits and other expenses to worry about because you’re not directly employing them.
Virtual bookkeepers provide you with a lot of accessibility and flexibility.
Thanks to the cloud-based bookkeeping software that they use, you can access your financial data from anywhere, at any time. Moreover, a virtual bookkeeper will offer customized service hours to suit your needs, ensuring you receive support when it’s most convenient for your business and none when you don’t.
Virtual bookkeeping services allow you to tap into a broader talent pool. You can select a bookkeeper with specialized knowledge in your industry, ensuring that they understand your unique financial needs and compliance requirements.
Even bookkeeping itself is a valued skill. Rather than trying to figure it all out on your own and significantly increasing the risk of making an error, take the stress out of the situation by getting someone on board who knows what they are doing.
As your business grows, your financial needs may change. Virtual bookkeepers offer scalability, allowing you to adjust the level of service you require.
Whether you need additional support during tax season or want to scale back during slower periods, virtual bookkeepers can adapt to your needs.
This means you get the resources you need while effectively managing costs.
While virtual bookkeeping offers numerous advantages, it’s essential to address potential concerns:
Protecting your financial data is paramount and working with someone on a virtual basis can increase the risk of your data being exposed or stolen.
Your virtual bookkeeper should, therefore, have robust data protection measures in place to safeguard sensitive information. Additionally, working with them to establish clear privacy protocols and encryption standards will keep your data as safe as possible.
Overcoming virtual barriers can be a challenge and bad communication can lead to errors being made and issues occurring.
Effective communication tools, such as video conferencing and cloud-based project management systems, can bridge the gap and ensure seamless collaboration.
It’s crucial to lay out your expectations on communication right from the start so everyone is on the same page. Tell your virtual bookkeeper how you want to be contacted and how often and work to establish a communication protocol that everyone can follow.
Ensure compatibility between your systems and the virtual bookkeeper’s software. Most virtual accountants will use credible and known software to do their job effectively.
For example, at EvolveCFO we use Xero and QBO which are both reliable and robust.
In conclusion, hiring a virtual bookkeeper can be very effective and advantageous for your business.
However, while virtual bookkeeping offers significant advantages in terms of cost savings, accessibility, expertise, and scalability, it’s crucial to address concerns related to security, communication, and technology.
If you’re ready to explore the advantage virtual bookkeeping offers, we welcome you to get in touch at EvolveCFO. We’re the leading experts in providing remote financial expertise to growing and established businesses.
Contact us today to find out how virtual bookkeeping can work for your business.
To learn more about what we do, or to request a quote, contact us at email@example.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*