Whether you are running a multinational company or an individual firm, a gift shop or a shopping mall, an engineering firm or a medical shop, bookkeeping is an essential function which helps you to keep track of all your money in the business. Bookkeeping in simple terms is the process of maintaining the financials of the company that is the inflow and outflow of the money to recognize the profit and loss made by the company. Accounting is based on bookkeeping process and one mistake in bookkeeping means a loophole in your accounts and financial statements which can cost you a lot in the long run.
Most of the mid-sized and large organizations have their own accounting team of chartered accounts, CPA and other professionals who are specified for the job of accounting but in small firms, it is expensive to hire such professionals to keep track of the accounts and thus, the proprietor must do bookkeeping and accounting on his own. This might be good initially, but the valuable time of business enhancement split into this “repetitive” work which will lessen the value of the business. Thus, in this age of virtual assistance, virtual accounting services can be used to maximize the profit of the company.
What is a Virtual Accounting Service?
Virtual accounting service is the online version of the accounting services you get from your accountant. The companies which provide this service have a group of qualified accountants and financial professionals who are well versed in this field and can provide reliable accounting services. From journal to financial statements, all required bookkeeping services are provided by these companies. The process is mainly online where you have to send them the invoices, purchase memos, and other bills and they will keep track of every penny you pay and get in the books of accounts.
Features of Virtual accounting services:
Virtual accounting services are basically the same as accounting services with an added online flavor to it. So, the features and the services provided by these companies are also the same as an accounting firm with the extra advantages of online assistance. The main features are as follows –
- Accurate and updated accounting software: Whether you are maintaining accounts by yourself, an in-house team of accountants or virtual accountants, the first thing which has to be there is an accounting software which is up to date with the market standards, effective to keep all the information and data secure, and provide the perfect results. This software is used to keep each and every record that is from placing an order, receiving it, invoice generation, bill payments etc. You have to just input the data and the software on its own will prepare financials like the journal, ledger, trading, profit and loss accounts, final accounts and financial statements as well. Quickbooks Bookkeeping services helps you lots in manage your business financial services with latest updated version.
- Tallying Cash and Bank Books: It is one of the crucial works of the accountant to tally the cash and bank book from time to time at least once a month. The virtual accountant keeps a track of the entire bank and cash transaction and the balances are up to date or not and if there are any differences in balances of both books or not and they offer services with Business Cash Flow Management services
- Leave all the invoicing work on your VA: Your VA or virtual accountant can keep track and record of all the invoices to be sent, received and processed. He will also keep an eye on the payments that are yet to be done, already received and others.
- Don’t worry about your bill dates: Once you have your virtual accountant by your side, you need not remember all the dates of your bills. Whenever the bill due date is nearby, your virtual accountant will pay it off and reflect that in the books of accounts.
- Salaries and wage payments made simple: With your virtual accountant, all your employees can get their salaries and wages on the exact date of payment in their bank accounts without any hassles. These companies have their payroll software like Quickbooks which they use to make payments to all the employees and taxes are also calculated in the software and accordingly adjusted.
- Consulting with your CPA and tax management: The virtual accountant upon consulting with your CPA can also help you in your tax matters.
There are various ancillary and HR-related functions which virtual accountants can help you like:
- Pay employees and contractors
- Generate invoices for clients and contractors
- Keeping track of employee reimbursements
- Helping you out in larger compliance matters of quarterly and annual filings
- Advanced analytics these days can also help you to analyze spending patterns of your company along with operational efficiency and specific metrics to keep you agile.
Benefits to the Company:
If your virtual accountant is prudent enough then it will not only help your business to grow exceptionally well but will also build goodwill for the business. A good virtual accountant ensures reliable online bookkeeping services which further helps the management to take the right decision on the basis of right financials. The benefits of virtual accounting in the process of bookkeeping and in your business are –
- You would only pay for the work they have done. The cost factor is a major benefit as you don’t have to pay for the hours the accountant is not doing any work. The virtual accountants accept payments mostly on an hourly basis.
- You have more time for your operational and business strategies as the bookkeeping functions are well-taken care by the virtual accountant.
- You don’t have to miss any bill payment dates as the virtual accountants are very organized in these matters and all your bills are paid on time.
- Your data and financial information, as well as other information you share, are kept secured and no third party has access to them.
- All your monetary transactions are recorded and thus not a single penny is misplaced in the process of the business.
- The accurate financials will help the management to take the right decision about the company.
- You get professional Bookkeeping services for CPAs at a reasonable cost and other accountants are all certified and trained according to the best practices in the market.
- If your bookkeeping function is well taken care of, you can analyze your business standing in few minutes and thus can work on the flaws to make it better.
Your individual accountant might not be capable in every section of bookkeeping process but when you hire virtual accounting services, you get the services of many qualified professionals at the same time to help you with their best resources which will help your business to flourish.
You are ready to Maximize your Bookkeeping function with Virtual accounting services, Contact us at MAC.