For small businesses and start-ups looking to limit their overhead, outsourcing their accounting and bookkeeping tasks makes business sense. They have the option to hire an onsite or virtual bookkeeper to perform these time-consuming yet essential responsibilities. While some SMEs feel more comfortable working with a part-time bookkeeper onsite, more and more businesses are turning to virtual bookkeepers because of the benefits they offer. So, if you’re thinking of outsourcing work to a virtual bookkeeper, you’re on the right track.
Functions of a Virtual Bookkeeper
Although a virtual bookkeeper is essentially an independent contractor working online or remotely, they can help you stay on top of your accounting and bookkeeping needs just like an onsite employee.
They are usually well-versed with QuickBooks, Peachtree, Xero and other accounting software and can perform the following functions:
- Account servicing
- Accounts reconciliation
- Balance sheet management
- Bank and credit reconciliation
- Cash flow projection
- Daily petty cash management
- Implementing record-keeping and accounting procedures
- Inventory management
- Maintaining accounts
- Maintaining cash flow
- Payroll processing
- Report creation
- Revenue and expenditure management
- Sales and purchase order management
- Trial balance maintenance
- Year-end accounting
Reasons to Hire a Virtual Bookkeeper Hiring a virtual bookkeeper comes with several benefits, including the following four:
1. A fixed monthly retainer for no surprises
One of the biggest perks of getting a virtual bookkeeper to perform accounting and bookkeeping tasks is that you don’t need to worry about a surprise costs. benefits and the equipment that a regular employee is entitled to. All you have to do is hire a virtual bookkeeper.
2. Free up more of your time for important tasks
Even if you have an accounting background, it could be difficult to manage your business and keep track of your business finances, too. By hiring a virtual bookkeeper, you’ll have more time to devote to other important tasks, such as strategising, marketing or getting more investors.
3. Stay on top of payments and collections
By giving your virtual bookkeeper access to your accounts and invoices, and records of creditors and suppliers, they can check, update and follow up payments. They can also track receipts, note accounts payables and receivables, balance your accounts and give you an accurate picture of your cash flow.
4. Monitor your KPIs
Whatever your type of business, it’s essential to know your company’s financial standing. You need three major reports to determine this: cash flow statement, income statement and cash disbursement schedule. With a virtual bookkeeper’s help, monitoring your business’s KPIs becomes so much easier. So, are you ready to hire a virtual bookkeeper? Remember, getting a virtual bookkeeper on board is a highly cost-effective way of managing your business finances minus the expenses of hiring a full-time accounting professional.