Small business owners often have multiple responsibilities in order to get their business started. However, they also try to cut costs by hiring less specialists.
However, sooner or later the workload will become too much for one person. Also, some professions are essential for business growth and development.
Remote work is changing the face of all employment. Accounting is no exception. LinkedIn Workplace Confidence Index reveals that over 80% of finance professionals believe that remote work is more efficient than working in an office. This can cause disruptions to accountants while they are performing critical tasks.
They even believe that the entire business’ financial parts can be transferred to remote railways without any problems. Their work does not require constant contact with people, but rather a peaceful and quiet environment.
Modern business models allow us to outsource a greater portion of our everyday work, saving our time, money, and nerves. Therefore, this is an example of why outsourcing is better than traditional methods, especially when there are more accounting tasks to do every day.
What are the basics of a virtual accountant and bookkeeper?
What is the secret to it?
A business owner typically grants access to the server, accounting software (like Quickbooks and Sage), documents, and any other information necessary to complete the accounting tasks through a secure portal.
A virtual bookkeeper can also adjust the work schedule to suit both the employee and the company, log in to the company’s network and then perform the tasks.
It’s convenient for companies because the owner of the company doesn’t need to provide workspace or equipment. An accountant can work from home. A stable, secure Internet connection is all that’s required.
You don’t have to be located in a certain area to use different accounting software, messengers, and video conferences.
What can a virtual accountant do for you?
Virtual accountants can do all the same tasks as in-office staff. However, they handle all paperwork, follow up on business transactions, record them in the ledger, and prepare regular reports for management or state authorities such as income statements, balances, and salary.
The responsibilities of the outsourcing accounting team may expand as the company grows. This includes paying bills and periodic reporting, time calculation, and tax payments.
Large companies often have many accounting tasks and a large staff. This means that employees are able to focus on their daily duties, such as entering inventory into the accounting system or issuing bills for clients.
These day-to-day tasks require precision and plenty of time. You can delegate similar tasks remotely to your staff, which leaves them with more time to do their primary tasks.
Although virtual accounting can provide many benefits to businesses, it may also have drawbacks for your business. You need to weigh the pros and cons.
Virtual accounting services offer many advantages.
It does not refer to money in the first instance. Virtual bookkeepers aren’t your employees. This means you don’t have to pay taxes, insurance, or any other related payments. You don’t have to find a workplace or equip it with the machinery you need.
You pay an hourly rate that’s significantly lower than the industry average. GrowthForces estimates that a full-time bookkeeper would cost $4000, plus taxes, health care, vacation, and benefits. Virtual accounts cost around $2000 to hire. This is a significant difference.
Multitasking can lead to more mistakes, even if you have sufficient knowledge and experience in virtual bookkeeping.
According to American statistics, almost 30% of small businesses go bankrupt because they fail to pay attention to the financial part or make mistakes when reporting to authorities and controlling organs.
Hiring an accountant, or several, who focuses on the financial sphere will save you from making mistakes and being overwhelmed by multitasking.
Focus on your primary duties
You and your employees will be able to concentrate on the most important functions and make your company more profitable and grow. Bookkeeping and accounting in healthcare companies are vital.
Virtual Accounting Service’s Disadvantages
There will always be some disadvantages. Your task is to find the right balance between these advantages and those of your choice. These are the main disadvantages to be aware of:
There is a possibility that your company’s sensitive data could be shared with third parties if you hire someone else. You should choose an experienced outsourcing company that knows how to secure a connection and is responsible for its employees.
You should also have an IT department capable of handling such matters. Front Desk Helpers provide a variety of digital security solutions to help your business run smoothly.
You should allow for some downtime if you have a virtual accountant that works a limited number of hours per week. This could cause problems if immediate action is required.
Certain business models may be unique to a company, which may require employees’ experience and knowledge that they may not have.
The business owner must decide whether the pros outweigh the cons in each situation. It is important to do your calculations and determine what is most profitable for you.