Changeover is fast in the accounting industry, looking at how firms can better manage workloads and keep driving down costs. One trend that is gaining momentum is to hire virtual bookkeeping assistants. With cloud-based and remote working being the order of the day, accountants can now delegate bookkeeping activities to professionals worldwide.
So, is hiring a virtual bookkeeping assistant a wise decision for accountants? This article discusses the benefits, challenges, and jobs that VAs can perform and how to choose one that is right for your business.
What Is a Virtual Bookkeeping Assistant?
A virtual bookkeeping assistant is a remote professional who keeps financial records, reconciles accounts, processes transactions, produces reports, and assures the accuracy of economic data. Unlike conventional bookkeepers who function within the office, these virtual assistants work remotely, collaborating with businesses from any location using cloud-based accounting software and communication tools.
Hire a virtual assistant for bookkeeping who is familiar with QuickBooks, Xero, FreshBooks, and other software programs. Therefore, these professionals can be hired for flexible hours and are cost-effective for accountants and small enterprises requiring bookkeeping assistance without needing a full-time employee.
Benefits of Hiring a Virtual Bookkeeping Assistant
1. Savings and Financial Flexibility
Bookkeepers’ full-time employment includes salaries, benefits, office space, training, etc. Virtual assistants, on the other hand, work on contract or hourly rates; thus, accountants only pay for services as needed. This budgetary accommodation is significant for young accounting firms and sole practitioners.
2. Improved Efficiency
Accounting is a time-consuming and precise service. By delegating bookkeeping tasks to VAs, accountants can concentrate on value-added activities like client advisory services, tax planning, and financial analysis. This boosts accountants’ efficiency, allowing them to grow their practice and take on more clients.
3. Scalability and Adaptability
The accounting industry is characterised by heavy demand during certain timely intervals, leaving the profession with some support during peak periods. Regarding maximum flexibility, firms may scale up or down on bookkeeping support with the help of virtual assistants, depending on workload. Therefore, these firms can get through the busy periods without straining their in-house personnel.
4. Access to Skilled Professionals
Most virtual assistants have a wealth of experience in bookkeeping and accounting software. Some focus on industry-specific financial processes, rendering them invaluable to firms servicing niche markets. Instead of investing all that time training an in-house hire, firms may immediately engage with skilled professionals.
5. Lesser Administrative Burden
Bill paying, expense tracking, and transaction reconciling require attention to detail yet do not help businesses grow. Handing such tasks to a virtual assistant allows accountants more time to focus on strategy and business development.
Key Tasks a Virtual Bookkeeping Assistant Can Handle
A virtual assistant can assist with bookkeeping tasks so accountants can focus on the advisory and strategic side of the business. Some everyday tasks include:
1. Accounts Payable Inventory Management
- Processing invoices and tracking payments.
- Managing vendor payments and client invoices.
- Timely bill payments to avoid penalties.
2. Bank Reconciliations
- Matching transactions with the bank statements.
- Identifying discrepancies and resolving errors.
3. Payroll Processing
- Sales calculations, deductions, and benefits for employees.
- Payroll tax processing and compliance filings.
- Salary payroll reports for business owners.
4. Financial Reporting
- Balance sheets, profit-loss statements, and cash-flow reports are prepared.
- Insights into business financial performance are given.
5. Expense Tracking and Budgeting
- Monitoring and classifying transactions on behalf of the business.
- Assisting in budgeting and forecasting.
6. Tax Preparation Support
- Organising financial records for tax filing.
- Assisting with tax deductions and compliance.
- Preparing reports to streamline tax submissions.
Selecting a Suitable Virtual Bookkeeping Assistant
A ripe process to find the best virtual assistant in bookkeeping should include the following steps:
➤ Verify Experience and Credentials
Their certifications in bookkeeping or accounting should be verifiable. They should also be proficient in relevant software like QuickBooks or Xero.
➤ Consultation of References and Reviews
Request testimonials from previous clients to verify reliability and accuracy. Platforms such as Upwork and Fiverr could also have client ratings.
➤ Test Their Communication and Availability
Ascertain that the VA would be available during your preferred hours. These should include anticipated methods of communication and reports before taking them on board.
➤ Clarify Security and Compliance Standards
It is imperative that the VA follow best practices for financial data security before considering any financial data security. It must encrypt all overly sensitive documents in the sharing networks.
➤ Trial Period
You might as well establish a trial period before a long-term commitment to allow the VA to be evaluated regarding all qualities mentioned, such as performance, accuracy, and efficiency for assigned bookkeeping tasks.
Is hiring virtual bookkeeping a plus?
Hire a virtual bookkeeping assistant for strategic accounting towards improved efficiency, cost reduction, and growing firms while increasing services without the cost of a full-time employee. Though invariably posing specific challenges, with adequate security measures, proper communication, and structured workflow, such problems can be nipped in the bud.
Therefore, a qualified VA will allow accountants to spend time on high-value tasks and better serve clients through added time efficiencies. Indeed, outsourced bookkeeping services with Kredence Global is an innovative, cost-effective answer for modern accounting practice, whether one is an accountant or owns a budding firm.
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