What is Virtual Bookkeeping, and Why Do Businesses Need It?

As an entrepreneur, you started with a dream and a laptop, and now your business has grown beyond your wildest dreams. But with growth comes complexity, and suddenly, you find yourself juggling numerous roles - CEO, CFO, bookkeeper, tax advisor - all at once. 

Late nights spent poring over spreadsheets have become the norm, overshadowing the thrill of entrepreneurship. But don't let overwhelming administrative tasks hold you back any longer. 

Introducing virtual bookkeeping - a solution for managing your finances.

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What is virtual bookkeeping?

Virtual bookkeeping is an online service that allows certified bookkeepers to manage financial records and perform various tasks remotely using cloud-based software, such as bank reconciliation, financial reporting, invoicing, and bill payment. This service is a convenient and efficient way to handle bookkeeping tasks without extensive training. Bookkeeping covers a wide range of services, including entering receipts and performing financial audits, but virtual bookkeeping specifically uses technology to streamline the process.

Small business owners often use virtual bookkeeping to save time, as they understand the value of their limited hours per day. Delegating tasks like keeping the books up to date can greatly improve efficiency. For startups with a high volume of customers or bills, virtual bookkeepers can save countless hours each month by providing an online service that assigns a dedicated virtual bookkeeper to handle all financial tasks.

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What do virtual bookkeepers do?

Virtual bookkeeping services are equipped to handle a wide range of business bookkeeping requirements. 

Key responsibilities of a virtual bookkeeper include:

• Recording financial transactions
• Reconciling bank and credit card statements
• Managing accounts payable and receivable
• Generating and dispatching client invoices
• Preparing comprehensive financial statements
• Conducting payroll processing and reconciliations
• Ensuring punctual tax filings
• Efficient document management
• Implementing invoice automation

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Which businesses should switch to virtual bookkeeping?

Virtual bookkeeping services benefit businesses of all sizes, from small startups to large corporations. By using this service, small businesses, in particular, can save time and money that can be invested in future growth. Going paperless helps the environment and cuts costs, as traditional bookkeeping methods often lead to errors that can harm a business. Entrepreneurs and business owners looking to streamline their operations and improve convenience should consider utilizing online tools for their bookkeeping needs instead of manually managing their books.

Also read: Bookkeeper vs Tax Preparer: Who Should You Hire First As A Startup Founder?

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Benefits of a virtual bookkeeping

Financial savings

Hiring a full-time bookkeeper can really put a strain on the finances of small businesses. Not only do you have to cover their salary, but additional expenses like taxes, health benefits, and office overheads can be quite burdensome. Opting for a virtual bookkeeper can help alleviate these costs and more. While an online bookkeeper handles the same responsibilities as an in-person one, you won't have to worry about footing the bill for their office space, furniture, or supplies. On top of that, outsourcing your accounting needs can assist with tasks like tax filing, financial reconciliations, and data entry – all of which consume significant time and effort.

More time to build your business

Maximize your strengths by entrusting your core competencies to a virtual bookkeeping expert. Free up valuable time to prioritize your company's growth and client connections while a remote bookkeeper efficiently handles essential tasks. With this support, you can dedicate more weekly hours to developing your business and its strategic direction.

Clean records

Keeping track of finances can fall by the wayside as you focus on other parts of your business, leading to expensive mistakes and delays. A virtual assistant bookkeeper can keep your finances updated and provide comprehensive accounting reports to better understand your business's financial health.

Professional expertise 

With reputed virtual bookkeeper services, professional expertise is just a click away. These platforms hire top-notch candidates with specialized skills in handling even the most complex online bookkeeping tasks. Additionally, remote bookkeepers often work for multiple clients, giving them exposure to various industries and segments in the world of accounting.

Enhanced cash flow management

A virtual bookkeeping service can help you manage your cash flow by accurately tracking your expenses and income. With their assistance, you can easily assess your financial status and determine if your business is profitable. They can also support you in managing receivables and following up on overdue payments, preventing negative balances and fees. Say goodbye to spending hours on bookkeeping tasks and hello to an efficient system that allows you to focus on growing your business.

Flexibility 

A traditional office bookkeeper sticks to regular hours, so don't expect a response outside of that time. However, a virtual bookkeeper is more adaptable and can be available in urgent situations. Plus, you can adjust their services as needed for your project.

Also read: Tax Form 1120 - What It Is? Your Complete Guide.

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How should you evaluate virtual bookkeepers?

When evaluating virtual bookkeepers, consider these key points to make an informed decision:

• Assess their professionalism by checking out their website and social media presence. A strong online presence indicates reliability. 
• Look for positive client testimonials and reviews on platforms like LinkedIn to evaluate their effectiveness and client satisfaction. 
• Make sure they have experience in your industry to provide tailored financial insights. 
• Evaluate their communication skills and responsiveness, as these are crucial for a smooth working relationship. 
• Discuss the financial reports and statements they will provide, as well as the frequency, to ensure they meet your business needs. 
• Understand their pricing structure and included services to avoid any hidden costs. 

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Conclusion

Experience the next generation of financial management with virtual bookkeeping to streamline their financial operations and focus on business growth. Partner with Inkle Books for solutions tailored to your specific needs, prioritizing efficiency, client satisfaction, and professional expertise. Our automated accounting platform simplifies bookkeeping, improves cash flow management, and allows you to invest more time in strategic business growth. Simplify your financial management with Inkle and unlock the full potential of your business confidently.

DM us on LinkedIn for more information.