Virtual accounting departments are difficult to set up because of the logistics of obtaining and then returning the receipts of the departments you are trying to provide services for. In traditional accounting companies, you would have a drop and a physical location where companies and the organisations can deposit their receipts on a weekly and monthly basis. The building can be insured against theft or damage of any mishappening events of those receipts because they are critical to the operation of the client businesses and for the department also in a particular business. In the virtual world, you should have a fully secure, absolutely reliable and good way of getting those receipts to you, and then you would have to get them into the hands of your workers or staff with the same cause of reliability and security.
A virtual accountant allows a bookkeeper for the accountant to provide bookkeeping services to various clients through a remote desktop system instead of physically working at the client’s office. Virtual accounting can be good for business in terms of flexibility and cost. Virtual accountants are good in knowledge and professional in their department and make good use of software, cloud, and other latest technologies to update financial data based transactions in the system, review and update statements and reconcile accounts.
Virtual bookkeeping departments help small business with the following areas:-
- Accounts Payable
- Accounts Receivable
- Bank accounts Reconciliation
- Sales Tax and GST Filings and Payments
- Cash flow management
- Bookkeeping Reporting
A virtual bookkeeper works just like an in-house accountant, except that the virtual accountants do everything from a certain distance. A virtual accountant will work from a different office without going to your office premises. They are always available through some modes like email or telephone, which makes communicating with one extremely convenient and easy for everyone. A virtual bookkeeper uses digital technologies based software to access all the required information, and they can set up approval processes with you for access to bank information so that they can start the process, incoming/outgoing payments and expenses, or any other step in their work.
A startup organisation or small business is busy with their business activities or with their scope of work – managing employees and staff within the organisation, clients, projects, supplies, websites, and marketing. Obviously, bookkeeping of the accounts and tax compliance tasks also. Some businesses try to manage books on their own and some prefer to employ an in-house bookkeeper or accountant but many have chosen to hire virtual accountant or bookkeeper because of the reducing the cost, accurate financial data and the transactions, less burden, and increased profit benefits.