What is virtual bookkeeping, and does it work for my particular industry? A virtual bookkeeper carries out the same tasks that an in-house bookkeeper would, such as payroll services or the recording of transactions, but online or remotely. Virtual bookkeepers typically operate using cloud-based software, which routinely backs up changes to your financial records. This software gives the business owner control over what financial data the virtual bookkeeper has access to. Outsourcing your bookkeeping can be an effective way to reduce your overall costs, particularly if you are a small business or a startup.

Many virtual bookkeepers are trained professionals, and some even have experience working for big accounting firms or have backgrounds as CPAs or auditors. Those that work for online bookkeeping services have a level of expertise that can benefit your company, and oftentimes, they are trained in a variety of services, such as preparation of tax forms, accounts payable and bill payments, and inventory accounting.

The services performed by a bookkeeper often depend on the industry – for example, there are different tax requirements for different types of businesses. As such, a bookkeeper is expected to know the industry-specific requirements that pertain to your specific company, along with the federal and state /local requirements.

Virtual Bookkeeping for Small Businesses

For many small businesses, finances can be tight. According to the U.S. Small Business Administration (SBA), only about one-third of small businesses survive 10 years or longer. In order to stay afloat past the 10-year mark, many small businesses must be cognizant of their expenses. Departments such as accounting and finance, while essential, can quickly become costly for a business, especially because they aren’t direct revenue generators. Some small business owners will attempt to avoid costs and do the bookkeeping themselves, however, spending time in this area means the business owner loses time managing other important areas of the company. Instead of hiring a full-time or part-time accountant, it makes much more sense financially to outsource bookkeeping services and pay either hourly rates or fixed monthly fees.

Virtual Bookkeeping for Startups

For startups that are rapidly growing, outsourced bookkeeping and accounting services could save your company time. Startups are already limited on the number of employees they can hire due to space in the office or budgetary constraints. Adequate space in the office is not necessarily a problem now that many companies have switched to work-from-home business models, spurred by the pandemic. With online bookkeeping services, startups do not have to worry about either of these problems.

For startups that operate in several locations, virtual bookkeeping can be even better than having a single, in-person bookkeeper. It also makes it easier for the startup to have a single point of contact managing all the accounting rather than having several individuals spread across different locations. The flexibility that comes with using a virtual bookkeeping service is also good for startups that have offices or employees in different time zones.

Outsourcing Bookkeeping Services in a COVID-19 or post-COVID-19 World

As many know from experience by now, the world is not what it used to be. Businesses have adapted to comply with the health and government regulations, and some of these changes include downsizing and outsourcing. For companies and organizations that traditionally operated in an office workspace pre-pandemic, the logistics of getting “back to normal” are complicated. Staff will likely need to be socially distanced and required to wear a mask (depending on the state your business is located), placing limits on the number of people who can return to the office. The period of return is also unknown; if there is another government-mandated lockdown, employees will likely have to go back to working remotely at home. One of the benefits of outsourcing accounting to a virtual bookkeeper is that, in this regard, they are a constant. No matter what the working conditions and requirements are, virtual bookkeepers will be flexible and available to work from any location with no special accommodations necessary.

Virtual Bookkeeping for Attorneys

The pandemic has affected industries across the board, causing shifts in the dynamics and operations of many businesses. One example of an industry that has seen a shift due to COVID-19 is that of attorneys. At the beginning of the pandemic, almost all attorneys transitioned to working remotely, and some even decided to branch out and start their own practices. For those who left their firms, they likely have more flexibility, however, one thing that has not changed is the need for bookkeeping services. Online bookkeeping services are an easy solution for attorneys who may not have the time or expertise to manage their finances themselves. Outsourcing accounting services is a low-cost alternative to hiring an in-house bookkeeper.

Virtual Bookkeeping for Realtors

Like attorneys, most realtors likely do not have the time to manage their books on top of their other duties. If you don’t work for a large real estate firm, it doesn’t make sense financially to pay to have an in-person bookkeeper. To keep overall costs low and your time free to show houses, you should consider outsourcing your bookkeeping.

Online Bookkeeping Services for a Range of Industries

Online bookkeeping services can save small businesses and startups time and money and can provide them with any accounting expertise that may be missing within their company. For individuals who run their own businesses, or for those who are just starting a new business, it is important to have a bookkeeper to review financial information and to keep records of transactions and documents in preparation for audits. The professionals at Our Bookkeeping Team can help your company – whether you’re looking to outsource your accounting department entirely or looking for a company that can lend support.

The professionals at Our Bookkeeping Team provide a range of online bookkeeping, virtual controllership, and outsourced financial services that can be tailored to fit your company’s needs. The services are offered at a fixed monthly rate, providing the professional knowledge your company needs at an affordable price. To learn more about how your business can benefit from our services, call 213-468-8316 to schedule a complimentary phone consultation.