Not every business owner has the time to devote to bookkeeping after all the hassles of managing a business and all the aspects that tag along with it. In addition to that, not every business owner is keen on doing the accounting work since it turns out to be boring after some time. Besides, if you are not a person who is experienced in bookkeeping, you might not have proper expertise in it too. So, it might result in a few common bookkeeping mistakes, which might hurt your business to a great extent.
If you are one of those business owners who are plagued by the endless worries that bookkeeping brings along, then the time is here for you to go virtual. Virtual bookkeeping has been setting trends since quite some time now.
What is virtual bookkeeping?
Virtual bookkeeping is when a bookkeeper or an accountant remotely provides bookkeeping services for a business. The business owner becomes his/her client and the communication takes place through telecommunication or via the Internet.
It is all the more beneficial because it lowers the cost to the company and brings in a lot of flexibility to the work, while facilitating a smooth workflow. In addition to that, the whole procedure is safe and much less time consuming than the traditional methods of bookkeeping. Owing to the endless benefits and the ease of telecommuting facilities, more and more businesses are shifting towards this trend. If your accounts are not in order, then maybe it’s your time to hire a virtual bookkeeper as soon as possible.
How Does Virtual Bookkeeping Work?
The whole process works in a very simple way. It is just like being associated with a business like an employee, but the only difference is that the bookkeeper does not sit in the office. That is the primary difference between a regular bookkeeper and a virtual one.
Since the whole thing is online, one of the most important things that accompany virtual bookkeeping is the matching of software between the one your business uses and the one that the virtual bookkeeper uses. Unless the software are the same, you might encounter quite a few problems with the whole of virtual bookkeeping.
For example Peachtree or QuickBooks make great accounting software if you and your virtual bookkeeper both have it installed. In fact, with QuickBook Online installed, three users can access the work process of the virtual bookkeeper, the three people being the business owner, the bookkeeper and the accountant.
However, there is another way out.
The process is simple enough to work it out. Just like being in an office environment, the virtual bookkeeper is granted access to the company’s server, software and the various financial documents concerning the company. Now the virtual bookkeeper can log in from his or her home network and access the files easily. It is just like sitting in the office and using the office server. Now this is a two way street:
- The company can purchase the software and grant access to it to the virtual bookkeeper. Once the virtual bookkeeper logs in to the company’s server, he or she can download it into his or her computer to facilitate a smooth workflow while working right from his or her home.
- If that is not the case, then the bookkeeper can purchase and register the software that the company uses. Once he gets that ready in his or her personal computer, he can start working in that software.
It is that simple.
Virtual Bookkeeper’s Payroll
The salary policies are fixed in the beginning depending on the employment method of the virtual bookkeeper. For example, if the bookkeeper falls under the company’s payroll, then he or she will be paid according to the company’s salary policies. This only happens when the bookkeeper is an employee. However, if he or she is an independent contractor, then the payment will take place according to the invoice he or she sends charging the company for the bookkeeping services.
Author: Satyajit Seal is an expert writer with 7 years of experience in content writing. He creates interesting and thought provoking content on a variety of niches. He suggests if you live near Fareham and are in search of an accountant for your business, then accountant Fareham is the right option for you. Be sure to locate the right bookkeeper for the task at hand.
