Online bookkeeping is a way to keep financial records and manage a business’ finances from a remote location. To improve and gauge profitability, the operation focuses on tracking income and expenses.
The virtual bookkeeper keeps the company on track and helps to understand the larger financial picture, enabling the company make informed financial decisions. Online bookkeeping refers to an outside contractor that assists a company with monitoring accounts, filing taxes and preparing financial statements.
Virtual bookkeepers enable business owners to operate in a way that is convenient for them. They don’t have to worry about financial operations. A virtual bookkeeper is a cost-effective option that allows small and large businesses to have expert bookkeeping. Let’s now understand virtual bookkeeping.
How does Online Bookkeeping work?
A virtual bookkeeper is a person who can access their financial records and bookkeeping software remotely when a company employs one. Virtual bookkeepers can log in from anywhere they like and offer highly competent and efficient services that rival those offered by an office.
Online or Cloud-Based Bookkeeping Work
- The bookkeeper works remotely from home and connects to the computer.
- He/She works in an online bookkeeping program like QuickBooks online using a log-in ID provided by the client company.
- The client’s desktop is accessed by the bookkeeper via a virtual hosted desktop. This can be done from a remote location.
Scope for Online Bookkeeping Works
- Some companies expect their bookkeepers to manage all or most aspects of bookkeeping. This could include billing customers and invoicing. Some might even be able to send email invoices directly to clients for approval.
- Some clients may be able to do the work themselves, such as sending invoices and writing checks. Clients will expect that the bookkeeper makes accurate entries, reconciles bank statements and reconciles accounts.
- Sometimes, the top leaders of companies might ask the bookkeeper to be available for discussions about budget planning, cash flow, and other financial priorities.
- The bookkeeper may be required to enter data and track receipts at times. A bookkeeper might also be responsible for categorizing expenses and indicating who and how much were paid. The bookkeeper will also be responsible for tracking receipts. The person will eventually be responsible for tracking the payments and invoicing.
Four Important Financial Statements – Responsibility of the Bookkeeper
- Balance Sheets A summary of the financial situation of the client
- Income statement: An overview of the client’s income over a time period.
- Statement on Changes in Equity This is the statement of retained earnings. It would include the owner’s share capital and retained earnings as well as changes in reserves over time.
- Cash Flow Statement This record shows the cash and equivalents that have entered and left the company.
If you do not have time, you can take advantage of virtual bookkeeping as well as QuickBooks Live. Real-time, live bookkeeping assistance from a QuickBooks-certified bookkeeper is provided by QuickBooks Live Bookkeeping (also known as a QuickBooks ProAdvisor). The QuickBooks Live Bookkeeping service, which is available only to users of QuickBooks Online, can be a huge assistance to business owners who don’t have the time to maintain their own books and who want hands-on, human support without hiring an inside bookkeeper.
The Benefits of Virtual Bookkeeping
- Employing a virtual bookkeeper can help companies save time and money. The company could save money on hiring, onboarding and training full-time employees.
- Virtual bookkeepers are able to work from home with much less distractions and can be more efficient than traditional bookkeepers.
- Because every company needs to grow in the long-term, virtual bookkeeping will always be more cost-effective.
- Small businesses can’t afford an experienced bookkeeper, so they will most likely hire one. It is possible to hire an experienced online bookkeeper who will provide consistent, accurate services without any room for errors or lapses.