Virtual bookkeeping and accounting service – All there is to know
Table of Contents
What Is Virtual Bookkeeping?
Virtual bookkeeping refers to maintaining and organizing financial records using digital tools and software instead of traditional, manual methods.
This can include data entry, invoicing, and reconciling bank statements. It is often performed remotely by a bookkeeper or accountant who may not be physically present at the client’s location.
What Is Accounting Service?
Accounting services refer to the professional activities performed by an accountant or accounting firm to help individuals, businesses, and organizations manage their financial records and make informed decisions.
This can include preparing financial statements, budgeting, tax planning and compliance, and providing financial advice. Accounting services can also include bookkeeping, payroll, and auditing services.
How Does Virtual Bookkeeping And Accounting Services Relate Together
Virtual bookkeeping and accounting services are closely related as they both involve maintaining and organizing financial records. Virtual bookkeeping involves using digital tools and software to perform tasks such as data entry, invoicing and reconciling bank statements.
While accounting services go beyond bookkeeping and provide a broader range of services such as preparing financial statements, budgeting, tax planning, compliance and providing financial advice.
Virtual bookkeeping is a subset of accounting services, and it is performed by bookkeepers or accountants who may not be physically present at the client’s location.
The bookkeeper will provide the financial transaction data, which the accountant can use to provide more in-depth services such as financial statement preparation, budgeting, tax planning, and compliance.
In summary, virtual bookkeeping provides the foundational financial data needed for accounting services to be performed. Accounting services build on that data to provide more advanced financial analysis and planning.
Virtual Bookkeeping And Accounting Service
Virtual bookkeeping and accounting services are becoming increasingly popular among small businesses and entrepreneurs. These services allow businesses to outsource their bookkeeping and accounting tasks to a professional without needing an in-house accountant or bookkeeper.
Virtual bookkeeping and accounting services typically include maintaining financial records, preparing financial statements, and reconciling bank accounts. They may also include specialized services such as tax preparation, budgeting, and financial forecasting.
One of the main advantages of using a virtual bookkeeping and accounting service is that it can save businesses time and money.
By outsourcing these tasks, businesses can focus on their core operations without worrying about the time-consuming and complex task of keeping their financial records in order.
Additionally, virtual bookkeeping and accounting services are often more cost-effective than hiring an in-house accountant or bookkeeper.
Another advantage of virtual bookkeeping and accounting services is that they can provide businesses with access to professional expertise.
Virtual bookkeepers and accountants are typically highly trained and experienced and can provide businesses with valuable insights and advice on improving their financial performance.
Additionally, Virtual bookkeeping and accounting services are accessible remotely, so businesses can access their financial records and get assistance from their virtual bookkeepers and accountants from anywhere, anytime.
This can be particularly useful for businesses that operate remotely or have employees working remotely.
Overall, virtual bookkeeping and accounting services can provide small businesses and entrepreneurs with the financial support they need to grow and succeed while saving them time and money.
If you are a business owner, consider outsourcing your bookkeeping and accounting tasks to a virtual service provider to help you stay on top of your finances and focus on growing your business.
How Does Virtual Bookkeeping And Accounting Service Work
Virtual bookkeeping and accounting services typically work by allowing businesses to outsource their bookkeeping and accounting tasks to a professional without the need for an in-house accountant or bookkeeper.
The process typically begins with the business owner or manager providing the virtual bookkeeping and accounting service provider access to their financial records, such as bank statements, invoices, and receipts.
Once the virtual bookkeeping and accounting service provider have access to the business’s financial records, they will begin maintaining, organizing, and updating them.
This typically includes entering transactions into accounting software, reconciling bank accounts, and preparing financial statements.
The virtual bookkeeping and accounting service provider will also provide the business with regular updates on their financial performance and can provide the business with advice on how to improve their financial performance.
This can include identifying areas where the business can cut costs or suggesting ways to increase revenue.
In addition to these core tasks, some virtual bookkeeping and accounting service providers offer additional services such as tax preparation, budgeting, and financial forecasting. These additional services can help businesses better understand their financial performance and make more informed decisions about their operations.
Communication between the business and the virtual bookkeeping and accounting service provider is usually done through a secure online portal or email, allowing for an easy and efficient exchange of information.
Overall, virtual bookkeeping and accounting services work by providing businesses with professional support and expertise in managing their financial records, allowing them to focus on their core operations and the growth of the business.
Benefits Of Virtual Bookkeeping
As mentioned, virtual bookkeepers can enable financial savings while enhancing convenience and flexibility. Let’s delve a little more deeply into the main advantages of virtual bookkeeping.
1. Up-to-date books
Virtual bookkeepers can access your bank statements, receipts, and invoices online with the aid of cloud accounting software, which enables them to update your books quickly and without having to wait for paper documents.
You won’t have to rush to organise your records for tax season or when your company is audited. Hiring an online bookkeeper means having a dedicated resource for managing your day-to-day books.
2. Accurate financial reporting
Cloud-based accounting software and online bookkeeping services complement one another. This means that you and your virtual bookkeeper can integrate time-saving.
By reducing the time virtual bookkeepers must spend on manual data entry, accounting technologies like these increase accuracy by lowering human error-related mistakes.
You’ll also gain the following:
- Better visibility into your cash flow and business performance via real-time access to your books through a web or mobile app, and
- Greater insight into decision-making from the balance sheet, income statement, and cash flow statement that your online bookkeeper generates each month
3. Greater flexibility and cost savings
With the flexibility of working with accountants outside of your immediate area, virtual bookkeeping makes it simpler to find the best fit for your requirements and budget.
Hiring a bookkeeper full-time or in-house, for example, might not be the most economical choice.
However, since maintaining your books is a necessary expense, working with a virtual bookkeeping company like Enkel might be the best option for getting current books at a reasonable cost.
Enkel lets you only pay for the bookkeeping services your company needs. Enkel’s team can offer a wider range of expertise and a wider scope of virtual bookkeeping services as your transactions or accounting complexity grows.
4. More time to grow your business
I wish you had more time to focus on what matters.
Since it’s unlikely that you started your business to become a bookkeeper, outsourcing virtual bookkeeping services enables you to trade in the stress and time spent on your books for greater peace of mind and more time to expand your company.
When working with a virtual bookkeeper, spend less time managing and training staff. When you sign up with Enkel, we thoroughly acquaint ourselves with your company to facilitate the transition to online bookkeeping.
The time to transfer your back-office tasks to an experienced team of virtual experts may be now, depending on your goals and available resources. Why not get in touch and learn how Enkel uses the best personnel, operational procedures, and technological advancements to update and maintain your books?