Virtual bookkeepers are bookkeepers who work remotely. This is also known as Cloud Bookkeeping. Virtual bookkeepers work with accounting software that allows them access to the account of the business owner. They can monitor your financial transactions, adjust accounts and send reports to you without ever having to leave your office.
The benefits of hiring a virtual bookkeeper
A virtual bookkeeper is a better option for small business owners as they are more likely to have a solid understanding of their company’s financial situation. A virtual bookkeeper works as a contractor and is, therefore, more affordable than hiring an employee. You will need to pay for the services and software, but you won’t have to add a virtual bookkeeper to your payroll or provide benefits.
Though, Virtual bookkeepers are flexible and can work as many hours as you require. Indeed, an initial consultation, you can determine the time and cost of their services and what they are willing to do for your business. These are just some of the many advantages you can expect from a virtual bookkeeper.
What services does a virtual bookkeeper provide?
Virtual bookkeepers can offer a variety of services that can be customized to your business needs. Creative Solutions offers the following virtual bookkeeping services for clients in Vermont and elsewhere:
Virtual Bookkeeping Services for Small Businesses and Basic Business
- Bank reconciliation with multiple bank accounts and credit card accounts.
- To maximize your tax factors such as, match expenses with vendors and bills.
- To ensure accurate records, match income with customers and, invoices.
- Monthly reports of profit, loss, and balance sheet statements.
- Year-end reporting and collaboration with your accountant regarding year-end taxes.
- Use connected POS apps and/or third-party reporting software.
- For more detailed reports, class recording is recommended.
- Assistance with generating a budget
- Reporting should include accounts payable, receivable, and budget vs. actual.
- Directly invoice your customers
- Notifying creditors.
- You can pay your bill through the secure bill payment system of your bank.
- Also, You can use accounts receivable to keep track of the money you owe.
- Payroll biweekly
- Direct email of your pay stubs before payday
- Direct deposit for your employees.
- Monthly, quarterly, and annual state and federal tax filings, and payments.
- Optional: Accrual of vacation and sick time
- Optional: Health care deductions
- Year-end 1099 services.
- Prepare 1099 forms for up 10 independent contractors
- 1096 Filing with the IRS
How to Start a Small Bookkeeping Business
If you are interested in starting a virtual bookkeeping company, here are some details. This information is meant to give you an overview of the process and not replace professional legal, accounting, and tax advice.
If you’re new to the industry, learn the ropes
If you working for an accounting firm or bookkeeping company can help you prepare to start your own business. This is a crucial step in starting a virtual bookkeeping company. This is especially important to learn accounting basics, such as double-entry accounting, general ledger preparation, and how financial transactions are classified and recorded. You will gain experience in bookkeeping software and will be able to identify the clients you enjoy working with, the services you offer, and the prices customers will pay.
Choose the right bookkeeping services to offer
Here are some examples of the work that bookkeepers do on behalf of clients:
- Preparation of financial statements (balance sheet and income statement, cash flow statement)
- Accounts payable management
- Accounts receivable management
- Invoice preparation
- Payroll services
- Also, Long-term asset tracking (e.g. equipment, machinery).
Learn the legal aspects of starting a bookkeeping business
Of course, you should pay attention to important legal and tax issues when starting a bookkeeping company. A professional advisor, accountant, or tax advisor can help you to ensure that you have the right information, understand your responsibilities, and make informed decisions.
The Top 4 Benefits Of Virtual Bookkeeping
Evidently, With the rise of virtual bookkeeping, many businesses are switching to online contracting to avoid being caught up in the pandemic. As if you were an employee, independent contractors can help you manage your bookkeeping and accounting needs.
These are the top four benefits of virtual bookkeeping:
Bookkeeping with less worry
Even so, A virtual bookkeeper can help you improve your efficiency and make your business run more efficiently. Virtual bookkeepers are familiar with the benefits of technological advancements that can help your business save time and money.
It frees you up to do more important tasks
Certainly, It can be increasingly difficult to manage your company and keep track of all the details. When you hire a virtual bookkeeper, you will find that you have more time. However, this time can be utilized to strategize, market, or write investor plans.
Fixed retainer without surprises
Virtual bookkeepers offer a great alternative to traditional onsite bookkeepers. You don’t need the hardware or benefits that part-time and full-time employees need.
Monitor your KPIs
Whatever type of business you run or are involved with, you must know your financial position. By looking at the three main reports: cash flow statement (income statement), cash disbursement schedule (cash disbursement schedule), and cash flow statement. Your virtual bookkeeper can help you manage and monitor key performance indicators in your business.