Outsourcing bookkeeping and accounting tasks can be a good business move for start-ups and small businesses looking to reduce overhead. These responsibilities can be outsourced to an onsite or virtual accountant. Some SMEs prefer to work with a part-time bookkeeper onsite. However, virtual bookkeepers are becoming more popular because of their many benefits. If you are thinking about outsourcing your work to a virtual accountant, you’re on a good track.

Functions of a virtual bookkeeper

Virtual bookkeepers are independent contractors who work remotely or online. However, they can still help you with your bookkeeping and accounting needs.

They are often well-versed in QuickBooks, Peachtree, and Xero accounting software, and can perform the following functions.

  • Service of accounts
  • Reconciliation of accounts
  • Management of the balance sheet
  • Reconciliation of bank and credit accounts
  • Budgeting
  • Projection of cash flow
  • Daily management of petty cash
  • Implementing accounting and record-keeping procedures
  • Inventory management
  • Maintaining accounts
  • Cash flow management
  • Payroll processing
  • Report creation
  • Management of revenue and expenditure
  • Management of sales and purchase orders
  • Maintenance of trial balance
  • Year-end accounting

There are many reasons to hire a virtual bookkeeper. Here are four of the most important:

1. No surprises with a fixed monthly retainer

The best thing about having a virtual bookkeeper perform bookkeeping and accounting tasks is the fact that there are no unexpected costs. You have the same benefits as regular employees, and you get all of the equipment. You only need to hire a virtual bookkeeper.

2. Save more time on important tasks

Even if your accounting skills are strong, managing your business and keeping track of your finances can be challenging. You’ll be able to spend more time on other important tasks like marketing, strategizing and attracting investors by hiring a virtual bookkeeper.

3. Keep on top of collections and payments

Your virtual bookkeeper can access your accounts, invoices, records of creditors, suppliers, and other information to check, update, and follow up on payments. They can track receipts, pay bills, and balance your accounts.

4. Keep an eye on your Key Performance Indicators

No matter what type of business you are, it is important to understand your company’s financial position. To determine your company’s financial standing, you need three main reports: the cash flow statement and income statement. Monitoring your business’s KPIs is much easier when you have a virtual bookkeeper. Are you ready to get a virtual bookkeeper on board? A virtual bookkeeper is an affordable way to manage your business finances without the expense of hiring an accountant full-time.

By Grace

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