If your startup is at the stage where you need to hire a bookkeeper, one of the first decisions you need to make is between virtual and on-site accounting. You are likely familiar with on-site accounting and have personally worked with local bookkeepers in the past. However, opting for virtual bookkeeping benefits your business by giving you access to thousands of bookkeepers that can keep track of your books without having to intervene in your office.
If you’re unsure whether virtual accounting is right for your business (or wondering, “ What is virtual accounting? ”), Read on to find out what it includes and what types of startups can benefit the most from choosing. a virtual service.
Tired of spending valuable hours on bookkeeping and accounting tasks? Find out how MD Bookkeeping Doctor LLC takes care of your financials for you.
What is Remotely Access Bookkeeping?
Like traditional on-site accountants, Remotely Access bookkeepers handle day-to-day financial tasks such as recording transactions, reconciling bank and credit cards, and processing payroll. The main difference is that the traditional accountant has to be present at your bookkeeper to perform these tasks while the virtual bookkeeper handles everything remotely using cloud-based software. Remotely Access Bookkeeping also know as virtual bookkeeping or online bookkeeping. As with any person or service you may consider hiring to help you manage the finances of your business, it is important to ensure that the person’s work is reliable, accurate, timely, and complete.
You can hire a remote bookkeeper as a full-time or part-time employee of your organization, an independent or freelance contractor, or outsource your company to a remote accounting service. If you choose a bookkeeping service, you will get the benefits of working with a full team of experts, including a wider range of accounting experience and the ability to cover additional accounting and bookkeeping services as needed.
Differences and similarity between on-site bookkeeper and Remote Access Bookkeepers
On-site Bookkeepers
Remote Access Bookkeepers
Major Work
- Reconciliation of bank accounts
- Data entry and recordkeeping via accounting software
- Accounts payable
- Accounts receivable
- Receipt management
- Expense management
Payroll reconciliations
Major Work
- Reconciliation of bank accounts
- Data entry and recordkeeping via accounting software
- Accounts payable
- Accounts receivable
- Receipt management
- Expense management
- Payroll reconciliations
Accounting tool
Locally installed accounting or bookkeeping software (like QuickBooks Desktop)
Accounting tool
Remote access via cloud-based accounting or bookkeeping software ( QuickBooks Online)
Workplace
Need to be present in your office or workplace
Workplace
Online bookkeeper can work from anywhere in the world with an internet connection
Communications
- The phone
- Personal meetings and conversations
Communications
- Emails
- Phone
- Document collaboration apps (Google Drive, Box, Dropbox)
- Online messaging ( Slack, Google Chat, Skype)
How Can a Remote Access a Bookkeeper's Physical Financial Documents, Such as Receipts and Invoices?
Remote access bookkeeper is a good option for businesses that want and can go paperless and use cloud services to replace the need for paper bills and receipts. There are countless resources available, including Bill.com to manage paperless billing and invoicing, Expensify to manage employee refunds, and new banking and credit card companies like Brex with integrated tools to manage account statements and online statements, making checkout easier than ever before moving your company’s back office in the cloud. If you are determined to maintain paper-based accounting techniques, remote or online bookkeeping services may not be for you.
Who Should Use Virtual Bookkeeping?
Almost any business owner or entrepreneur will find online bookkeeping a suitable alternative to on-site services, thanks to the vast pool of experienced bookkeepers you can choose from and the flexibility that many remote accountants provide in their working hours. As long as your team is comfortable working with online tools, your company is a good candidate for online bookkeeping. However, there are a few types of businesses for which remote services are particularly beneficial:
New Startups that are Growing Quickly
As the number of clients and financial transactions your business deals with enhances the complexity and hours of accounting support you need. When using on-site accounting, you are limited by the availability of accountants in your area and the space in your office for new team members to work. Alternatively, if you work with a remote accounting service, your team likely has the bandwidth to do additional work when you need it, without worrying about finding new employees or adapting your office space. Many online bookkeeping services have the ability to expand to meet the bookkeeping needs of your business as well.
Startups with Unusual Business Models or Verticals
A bookkeeper clerk who understands financial reporting (at least monthly financial statements, including profit and loss or income statements, balance sheet, and cash flow statement) and the tax requirements for your industry, will process quickly and accurately your accounting work and will make sure of that. They don’t leave money on the table. It can be difficult to find someone with the right accounting experience living close to work distance from your workplace, especially if her business contains an unconventional business model or part of a niche industry. If you work with a virtual accounting firm, you can choose from a wide range of financial services and account secretaries located anywhere in the world, making it more likely that you will find someone with expertise in your particular accounting needs.
Also Read: The Advantages of Quickbooks for Your Business in Northern Virginia
Startups Operating in Multiple Locations
If your business contains multiple workspaces, personal accounting professionals may be an ineffective solution. Having a bookkeeper covering all of your offices means wasting a lot of time traveling instead of working on the books, but hiring a bookkeeper for each location is a huge cost. The online bookkeeper will be able to manage books for all of your sites remotely, so you have a single point of contact to manage your financial information and give you a complete picture of your business performance.
MD Bookkeeping Doctor LLC: The Virtual Bookkeeping Service Built For Startups
MD Bookkeeping Doctor LLC. is a full-service accounting firm in Maryland that takes care of all your remote bookkeeping, accounting, and financial management needs. Our team has witnessed the bookkeeping challenges many startups face countless times, which is why we have created an online bookkeeping solution that solves common startup problems and provides you with the right financial foundation for growth.
Many bookkeeping companies charge an hourly rate, which can be surprisingly expensive each month, depending on the number of transactions, complexity, and general business needs. With MD Bookkeeping, you’ll pay a fixed monthly fee based on how much you spend running your business, making it easier to budget for accounting costs, even as your business grows. For more information about our services email us mdbookkeepingdoctorllc@gmail.com
