Bookkeeping has a long and rich history. It dates back to Ancient Rome. Luca Pacioli pioneered double-entry bookkeeping all time. Despite the fact that technology has dominated our lives, bookkeeping has not been forgotten.
What is Virtual Bookkeeping?
Virtual bookkeeping is convenient because it allows employers and bookkeepers to manage their books in a flexible manner. In addition to lowering accounting costs, virtual bookkeeping also allows businesses to manage their staffing and scheduling workloads more effectively.
How Does Virtual Bookkeeping Work?
Communicating and tracking progress should be standardized between the two parties to avoid confusion. Cloud-based accounting software for small businesses like Quickbooks or Xero is available. The bookkeeper should be able to use either one if the employer uses them.
Sometimes, the company will supply all the equipment, software, and tools necessary for the bookkeeper to finish the job. Other times, the accountant can log in to his personal computer to finish the job and email the employer the financial reports.
The compensation for a virtual bookkeeper hired by a company as a remote worker is the same as the wages paid to regular employees. The bookkeeper can set their own pricing and schedule if they are a freelancer.
What is the Cost of Virtual Bookkeepers?
Many virtual bookkeepers offer a complimentary consultation to potential clients in order to assess the client’s workload, and problems and then be able to provide a quote. Pricing for freelance virtual bookkeepers can vary depending on their experience and skills. It could also depend on the complexity of the work.
You might find that they charge a flat hourly rate of $25 to $200 depending on your experience and knowledge. Others may offer packages that range from $250 to $1000 per month, depending on the amount of work they have done and their experience.
Prices for bookkeepers can be negotiated, as they vary. It is especially important when you work with accounting and bookkeeping firms that have different duties. While some bookkeepers might offer accounts receivable or payable services, others may prefer cash-based bookkeeping that includes data entry, categorizing expenses, bank reconciliation, and financial statement preparation based upon bank statements.
What does a Virtual Bookkeeper do?
In virtual bookkeeping, your bookkeeping is handled remotely by someone who is not located in your area or even time zone. Communication and financial documentation are handled within bookkeeping software. Virtual bookkeepers categorize and prepare financial statements for businesses.
Virtual Bookkeepers typically perform these tasks.
- Every transaction, debit, and credit must be recorded.
- Also, every transaction should be documented
- Next, regularly updating the ledgers in chronological order
- Daily banking transactions
- Providing regular financial reports at the end of each month
- Notifying management about any financial issues or variance
- Taxes and tax returns, if necessary
- Monitoring cashflows and the annual company budget.
The Benefits of Hiring a Virtual Bookkeeper
The following is a comparison between hiring a virtual bookkeeper and hiring an employee:
- Bookkeepers who work remotely do not have to worry about “vacation pay”.
- Also, our virtual bookkeepers do not charge you for lunch, breaks, or playtime. They can simply clock in and go every time they need to do their job.
- Next, a virtual bookkeeper will usually earn less than an employee. The average annual salary for a bookkeeper in the United States is $42,000. This would mean that the monthly payment would be approximately $3500 plus benefits. The average monthly package for hiring a virtual bookkeeper is around $1000. This is a lot more convenient.
- Terminating employment can be difficult and expensive. You can end the contract with your virtual bookkeeper or the company should be terminated if you no longer need it.
Virtual Bookkeeping: Is it worth it?
Bookkeeping is a great option for small businesses as well as bookkeepers. This bookkeeping offers many benefits.
For remote bookkeepers and accountants, business owners can verify the reliability and professionalism of previous employers and request references. Both the business and the bookkeeper can stay organized with virtual bookkeeping. Virtual bookkeepers are more motivated to complete their projects on time, so they have more time to work on the next project.
Virtual bookkeeping is more beneficial for both small businesses and bookkeepers than traditional bookkeeping. Bookkeeping is advancing every day, and technology is also moving faster. We are optimistic about the future.
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