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online bookkeeper

What are the Benefits of Hiring a Virtual Bookkeeper?

You can save time and money by outsourcing parts of your business to freelancers. Many business owners employ virtual bookkeepers to manage their accounting tasks. This is especially useful as your company grows and more routine accounting tasks become necessary.

Virtual bookkeepers can help you keep your business on track, reduce errors, and manage financial records. Outsourcing any business function can be risky. Before you hire someone to perform a virtual service, weigh the pros and cons.

This blog post will discuss the pros and cons of using a virtual bookkeeper. This post should help you determine whether your business would benefit from this role.

All You Need To Know About Hiring A Virtual Bookkeeper:

What is a Virtual Bookkeeper?

Virtual bookkeepers can offer routine accounting services remotely for your business. This professional virtual bookkeeper can work remotely and choose their own work hours.

Business owners frequently have access to the following information in order to hire a virtual bookkeeper:

  • Log in information to their cloud-based server
  • Accounting software
  • Bank statements and financial data

Once the bookkeeper has created a login, they can log in to the network to perform the required services.

What does a virtual bookkeeper do?

Virtual bookkeepers perform the same functions as an accountant or bookkeepers in your company. Bookkeepers are responsible for recording and processing financial transactions of your company in the general ledger.

They may use this information in certain cases to produce periodic financial statements for your business, such:

    • Statements of income
    • Balance sheets
    • Statements on cash flow

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The Pros and Cons of Virtual Bookkeeping Services:

A remote bookkeeper can be a great asset to your small business.

1. Cost Savings

Virtual bookkeepers are not considered full-time employees so you don’t have to offer them full-time benefits. You can pay payroll taxes, provide them with workspace, or offer healthcare coverage.

GrowthForce estimates that the average virtual bookkeeper will cost $500-$2,500 per month. A full-time bookkeeper, on the other hand, can run between $3,000 to $4,500 per month, plus benefits.

virtual bookkeeper

2. Error Reduction

Even though you are skilled in bookkeeping, it is unlikely that you can ensure all accounting tasks are done correctly. Neglecting to address accounting responsibilities can lead to major financial problems. 29.9% of small businesses fail because they have cash flow problems. Multitasking can lead to errors, so it is important to hire a bookkeeper who will focus on routine accounting tasks.

3. More freedom to do the things you love

You can now focus on the most important projects for your business by removing financial management tasks from your to-do lists.

Cons of Virtual Bookkeeping Services –

There are downsides to outsourcing your company’s bookkeeping. The following are some of the main disadvantages to outsourcing your online bookkeeping needs:

1. Lower security

If you allow an outsider to access your internal systems, there is a risk that your company information could be leaked.

2. Communication challenges and logistical problems

Sometimes, a freelancer might not be available for immediate assistance. You might experience delays in communication or turnaround when working with a virtual bookkeeper.

3. Insufficient industry knowledge

Many virtual bookkeepers work in various industries and companies. They may not be able to identify potential risks and make strategic recommendations.

How to hire a virtual bookkeeper

Finding reliable freelancers is now easier than ever. There are many online platforms that connect small businesses to quality help. These sites allow business owners to post job postings in bookkeeping.

  • Upwork – Upwork is a global platform for freelancers and businesses that allows them to connect and work remotely.
  • FlexJobs FlexJobs – FlexJobs lists jobs in more than 50 categories to freelancers and permanent candidates looking for flexible work. This service screens both candidates and employers to ensure that you have a great experience.
  • VirtualVocations is a job site that connects job seekers with remote job leads. You’ll only be connected to serious candidates thanks to the premium subscription model.

The Bottom Line: Is Virtual Bookkeeper Right For Your Business?

Your business’s goals, available resources, and how you want to use them will determine whether or not to hire a virtual bookkeeper. Many business owners find the benefits of outsourcing routine accounting tasks to be far more beneficial than the drawbacks. However, it is important to thoroughly research and interview candidates before you share any company data.

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