Last Updated on May 10, 2023 by hassan abbas
The outsourcing of bookkeeping and accounting tasks can be an excellent business decision for start-ups and small businesses that are seeking to reduce overhead costs. It is possible to outsource these responsibilities to an onsite accountant or a virtual accountant. It may be beneficial for SMEs to hire a part-time bookkeeper on-site. The benefits of virtual bookkeepers are making them increasingly popular. Consider outsourcing your work to a virtual accountant if you wish to save time and money.
Functions of a virtual bookkeeper
An independent contractor working remotely or online is referred to as a virtual bookkeeper. Nevertheless, they can help you with your bookkeeping and accounting needs.
Their accounting skills include knowledge of QuickBooks, Peachtree, and Xero.
- Payables service
- Balance sheet reconciliation
- Balancing the books
- Account reconciliation for banks and credit cards
- Establishing a budget
- Calculation of cash flow projections
- Maintaining accounting records and accounting procedures
- Management of inventory
- Maintaining an account
- The management of cash flows
- Processes associated with payroll
- Creating reports
- Controlling revenue and expenditures
- Purchase and sales order management
- Keeping the trial balance up to date
- An accounting report for the year ended
There are many reasons to hire a virtual bookkeeper. Here are four of the most important:
1. Monthly retainers mean no surprises
Virtual bookkeepers offer the advantage of not having unexpected costs associated with virtual bookkeeping and accounting. Besides getting all of the equipment, you also get the same benefits as regular employees. There is no need to hire a bookkeeper on site.
2. Save more time on important tasks
Accounting skills do not guarantee success in managing your business and keeping track of finances. The virtual bookkeeper will allow you to concentrate on other important tasks, such as marketing, strategy, and investor recruitment.
3. Be sure to keep track of collections and payments
Virtual bookkeepers can access your accounts, invoices, creditor, supplier, and other information to check, update, and follow up on payments. They can pay bills, track receipts, and balance your accounts.
4. Keep an eye on your Key Performance Indicators
Whatever type of company you have, understanding your company’s financial situation is vital. There are three primary financial reports you need to determine your company’s financial status: the cash flow statement, income statement, and cash disbursement plan. A virtual bookkeeper makes tracking your company’s KPIs much easier. Do you need a virtual bookkeeper? It is affordable to hire a virtual bookkeeper instead of an accountant full-time in order to manage your business finances.