Virtual bookkeeping is the process of using software to record the financial transactions of a business. The software usually comes in the form of an electronic spreadsheet or database. It’s a great way to keep track of your business’s finances and avoid inaccuracies and manual errors. Virtual bookkeeping is an easy to use and effective way for small businesses to keep track of their finances.
What do virtual bookkeepers do?
Virtual bookkeeping is the process of managing a business’s finances online. This usually includes recording transactions, preparing reports, and tracking cash flow. It can also include providing customer support and processing payments.
If you want to start your own virtual bookkeeping business, here are some tips to get started:
- Choose a niche –Virtual bookkeeping is a broad field, so you’ll need to choose a specific niche to focus on if you want to succeed. If you’re new to the industry, start with something simple like bookkeeping for businesses with less than 100 employees. Or if you have experience in accounting or financial management, try starting a virtual bookkeeping consulting business.
- Get organized – Before you can start recording transactions or preparing reports, you’ll need to set up your business account and organize your files. This includes creating folders for each category of information (like transactions, invoices, contracts), and creating templates for reporting and financial statements.
- Connect with clients online. The best way to get started in virtual bookkeeping is by connecting with clients online.
What are the benefits of virtual bookkeeping?
virtual bookkeeping can be a great way to save time and money. Here are some of the benefits:
- keep your books online, so you can access them from any computer.
- keep your books in your own time frame, which can help you stay organized and productive.
- You can easily share your records with other members of your business or family.
- You can get estimates for work you don’t have time to do yourself.
- Easily track your spending and income.
When does virtual bookkeeping make sense for your business
Virtual bookkeeping can be a great way to keep your business organized and efficient. Here are some reasons why virtual bookkeeping might be a good fit for your business:
- You can save time – Instead of having to calculate and compile your own financial reports, you can have them automatically generated by a virtual accountant. This can save you hours each month.
- You can track your finances more easily – With virtual bookkeeping, you can keep tabs on all of your expenses and income in one place. This makes it easier to stay on top of your budget and track where your money is going.
- You can reduce stress – Bookkeeping is often stressful, but with virtual bookkeeping, you can take some of the burdens off of your shoulders by having the reports done for you. This way, you can focus on other important aspects of your business instead of worrying about the financial side.
Virtual bookkeeping vs. local bookkeeping
Small businesses have always chosen local bookkeepers as their first choice. You used to hire a local bookkeeper, either an individual or a firm. You would then send them your financial transaction records each month and they would handle all data entry.
Virtual bookkeepers are not uncommon in local businesses. The software syncs up with your bank accounts or credit cards so that bookkeepers can automatically record transactions and categorize them.
You may even find that you don’t need to meet your local bookkeeper in person. Because virtual and local bookkeepers are more similar in terms of their services and the way they offer them, it’s not surprising that this trend is growing. There are some differences.
Types of virtual bookkeepers
Virtual bookkeeping solutions can be either freelancers or services.
Freelancers can be hired online on sites like Upwork. They have a wide range of education and experience. Bookkeepers don’t need to be licensed.
You’ll probably need off-the-shelf software to check your books and assist your virtual bookkeeper with categorizing transactions. You should be prepared to communicate mostly via email or messaging apps such as Slack.
Virtual bookkeeping services usually provide a team of bookkeepers to do your bookkeeping. (It’s the way Bench does it, at least.
Virtual services can be more complex than individual freelancers. Virtual services often have full-time teams so that you don’t need to worry about your bookkeeper getting sick or going on vacation. Typically, they have more robust features, like a dedicated app.
Bench connects directly to your bank or credit card accounts to pull all transactions. We then categorize each transaction and create financial statements that are easy to read. You will also receive an easy-to-use platform with reports and dashboards that can help you keep track of your finances.