Virtually operating your day-to-day financial records and guaranteeing your corporation’s overall fiscal well-being holds enormous significance. This remains valid whether you’re at the helm of a fledgling startup, a small business, or a corporation. Yet, as the adage suggests, the intricacies lie in the particulars, mainly when dealing with numerical data.
Maintaining an accurate panoramic view and sidestepping last-minute rushes, inaccuracies, and penalties necessitates a vigilant approach to bookkeeping. Navigating your company’s financial trajectory can be a meticulous task where every single receipt holds significance.
If the prospect feels daunting due to an already brimming workload or the reluctance to engage an expensive accountant for seemingly menial tasks like sifting through a trove of receipts, an alternative to contemplate is enlisting the expertise of a proficient bookkeeper.
The value of an experienced bookkeeper becomes evident as they can rapidly justify their cost by safeguarding against fraudulent activities, losses, penalties, and compliance complications. However, what’s the return on investment (ROI) when opting to hire a bookkeeper, and what financial outlay should you anticipate?
Definition of Virtual Bookkeeping
Virtual bookkeeping involves delivering remote bookkeeping services to clients through cloud-based software, offering both flexibility and cost-efficiency in the process.
In the era of digital transformation, the embrace of virtual assistant bookkeeping services has emerged as a widely embraced and efficient means of overseeing financial matters for businesses. This approach has gained substantial traction, especially among small and medium-sized enterprises (SMEs), aiming to enhance efficiency and trim expenses.
A virtual bookkeeper operates predominantly from a remote setting, delivering online bookkeeping services. The geographical location might vary, with communication occurring through email, phone calls, or video conferencing, even spanning different cities or countries.
Secured within cloud-based software, all financial transactions and pertinent documents find their repository, ensuring accessible convenience for the bookkeeper and client.
Procedure to Find a Suitable Virtual Bookkeeper for Your Business
1. Discover their software toolkit.
Initiate your inquiry by learning about their software toolkit. Inquire about the applications they rely on to deliver their services effectively. The following fundamental framework should ideally be in place, often fulfilled by the mentioned apps, in sequential order:
- Foundational accounting and general ledger applications (like QuickBooks Online).
- Remote web conferencing tool (such as Zoom).
- Project management solution (e.g., Smartsheet).
- Communication platform (like Slack).
- File and document management system (such as G Suite).
While some specific apps might differ, if the virtual bookkeeping service you’re considering can successfully address these five core aspects, chances are you’re on a solid foundation.
2. Ensure software alignment
Establish compatibility in accounting software choices. Collaborating seamlessly with a virtual bookkeeper becomes considerably more challenging when you employ QuickBooks, and they are reliant on different platforms like FreshBooks or Xero. Consequently, it’s vital to query them about the accounting application they utilize for their operations and the rationale behind it. This inquiry is justified and helps in gauging suitability. Should discrepancies arise in software preferences, delve into the reasons to ascertain if they align with your requirements before committing to collaboration.
3. Assess the virtual bookkeeper’s digital presence.
A truly cloud-centric enterprise, including a virtual bookkeeping service, should be actively engaged across social media platforms. Their participation in LinkedIn and Facebook forums is pivotal. Furthermore, their proactive creation of content aimed at establishing themselves as industry thought leaders is essential.
By adopting this approach, you no longer rely solely on their self-proclaimed capabilities. If they are disseminating valuable advice that resonates with others, you’ll witness this in action rather than just taking their word at face value. When the potential virtual bookkeeping service comprehends the significance of contributing meaningfully, it’s a positive indicator of their potential benefit to your business.
Therefore, it’s advisable to conduct a comprehensive assessment. Are they sharing videos, podcasts, or blog posts? How are they showcasing their expertise and knowledge to the broader discourse?
4. Does your virtual bookkeeper possess industry-specific expertise?
Within my organization, we emphasize to accountants and bookkeepers aspiring to establish virtual bookkeeping services the significance of specializing in particular industries. This principle holds true for any bookkeeper, whether operating in-person or virtually. For virtual bookkeepers, this emphasis is particularly crucial, as it shapes the alignment and compatibility of the tools they employ with your business’s requirements.
When considering a potential virtual bookkeeping service, it’s essential to inquire about their familiarity with your industry. Additionally, ascertain whether they have worked with clients within your industry and, if so, the extent of their experience. It might even be worthwhile to request a few client testimonials to verify the suitability of their service for your needs.
5. Inquire about outcomes from your virtual bookkeeper
In more conventional bookkeeping practices, generating reports used to involve a sequential procedure—someone had to initiate the report, correctly save it, and then forward it. However, with the advent of cloud accounting and virtual bookkeeping services, the expectation is that information can be automatically dispatched to you based on a predetermined schedule. Instead of explicitly asking if they adhere to a reporting schedule, it’s advisable to inquire about the specific outcomes they will provide on a weekly or monthly basis.
Additionally, raise the topic of report review sessions. This should be a standard offering across all virtual bookkeeping services. While opting for this feature might incur a higher cost compared to their basic package, the availability of this option is crucial.
6. Inquire about the cost structure
If they are employing an hourly pricing model, it might not be the most favorable indication. Such an approach suggests that your virtual bookkeeping service might have overlooked a fundamental aspect of operating as a “cloud-based” bookkeeping service. Hourly pricing isn’t optimally suited for this context. Ideally, they should provide a clear and consistent flat-rate pricing structure, offering a monthly fee in return for a precisely outlined scope of deliverables.
7. Familiarize yourself with their client interaction approach
The essence of a virtual bookkeeping service hinges on efficiency. Are you engaging in a protracted exchange with a potential bookkeeper to establish a suitable conversation time, or do they employ a scheduling application for seamless coordination? Is their responsiveness prompt? An absence of efficiency during this initial phase could potentially signal a lack of efficiency in their client engagement once you’re onboard.
Seek insights into their onboarding procedure. Do they have a structured process in place?
Bottom Line!
Drawing from my experience within the realm of cloud accounting, I can attest that numerous virtual bookkeeping services might not adhere to the best practices outlined earlier. Suppose your initial interactions with a prospective virtual bookkeeping service fail to instill a complete sense of confidence that they genuinely have your interests at heart. In that case, it’s prudent to decline and continue your search.
Ultimately, your virtual bookkeeper should be a collaborative partner, poised to contribute to your business’s economic growth. As you embark on the quest for the ideal virtual bookkeeper for your small business, keep this principle at the forefront of your considerations.
