Owners of small businesses and startups know that their company’s accounting starts with bookkeeping. But do they need an in-house bookkeeper? Why not hire a virtual (or remote) bookkeeper.
If you’re unsure how remote bookkeeping services can help your business, we’ve answered some frequently asked questions.
Frequently Asked Questions About Remote Bookkeeping Services
Get the answers to questions our experts are frequently asked about remote bookkeeping services.
- 1. I hear the words accountant and bookkeeper used interchangeably. Are there any major differences?
To put it briefly, bookkeepers document and categorize a business’s financial transactions. They also produce invoices; post debits and credits; and maintain and balance general ledgers, historical accounts, and subsidiaries.
Accounting, on the other hand, is a high-level process of carefully examining, analyzing, and creating a financial module based on the information a bookkeeper provides. Accountants are more qualified to advise on matters related to tax, prepare company financial statements, and help business owners understand the impact their financial decisions have on the business.
2. What does the term ‘virtual bookkeeper’ mean?
A virtual bookkeeper (also known as an online or remote bookkeeper) offers their services remotely. They can work from anywhere, including their home, instead of your office. They use accounting software, cloud solutions and mobile apps to complete their work from anywhere in the world.
3. Why is a virtual/remote bookkeeping service necessary for my business?
When you hire internal bookkeeping staff, you pay them a salary, provide benefits, and give them furnished office space. You may also have to pay their transportation costs. But with a remote bookkeeper, you only pay their hourly or fixed rate.
If you’re still unsure, read about what other benefits a virtual bookkeeper can bestow on your business.
4. By outsourcing my company’s bookkeeping, will I lose touch with my business?
There is no need to worry about this. Once you outsource your company’s bookkeeping, you will have more time to manage sales functions and operations. This means you won’t have to worry about investing a lot of time managing your income and expenditures.
You can also rest assured knowing you have a trusted advisor keeping an eye on your books to ensure operations run as smoothly as possible. This allows you to focus on managing the business.
5. Can a remote bookkeeping services provider also help with admin tasks?
Absolutely! Most remote bookkeeping service providers are also adept at managing other tasks. Speak to yours to find out what administrative tasks they can provide.
6. What happens if my business grows or relocates?
The best thing about hiring a remote bookkeeping service provider is that they can move with you. Since most of their operations are conducted virtually, they are well-equipped for growth and will stay with you every step of the way.
7. How do I safely send all my financial data?
There are several ways to send appropriate documents. Most banks allow their clients to download online statements into their accounting software. Many also offer restricted access which keeps important financial documents in safe hands. This allows your virtual bookkeeper to assess the best methods to present your company’s receipts.
8. Is it better to search for a local bookkeeper?
Most remote bookkeeping service providers use software that offers numerous features. This ensures that they can provide top-quality service to all their clients, regardless of where in the world they may be located.
9. What types of businesses do remote bookkeeping service providers generally serve?
Remote bookkeepers typically serve a wide range of businesses, from medicine, construction, beauty, law and advertising to real estate sales/rentals and counselling, among many others.
10. Should I worry about confidentiality?
Virtual bookkeepers understand that your financial data are private and treat them as such. However, you can also ask them to sign a non-disclosure agreement (NDA) to feel safer.
11. Can a virtual bookkeeper use the software I currently use?
Yes, they can. If you have signed up for an online software package, you can send them an invite to see your business transactions and work on the information they receive.
On the other hand, if you are using desktop software, you will have to give your virtual bookkeeper remote access to your desktop or laptop. This also gives you the opportunity to keep an eye on what they’re doing.
Hopefully, this blog has answered your questions about remote bookkeeping and helped you understand how it can benefit your business. Have more questions? Then get in touch with our consultants to learn about our process and services.