What are Virtual Bookkeeping Services?
Accounting and bookkeeping are the foundations of your business’ finance. This is why businesses invest in in-house accounting departments. However, modern businesses prefer to outsource to virtual bookkeeping services. This trend is not a whim but a well-established trend.
If you plan to engage a third-party bookkeeping services provider, you must be careful when selecting one. The reason is that the success of your business relies on accounting continuity.
Regular updating of books gives you access to the latest transaction data. Your virtual virtual bookkeeping services firm analyses these to render financial insights. These reveal your business’s current financial state and enable you to make effective business decisions.
You must focus on the providers that employ a team of experienced and professionally adapted accountants. These professionals update their accounting knowledge regularly by attending seminars, webinars, and training sessions run by authorities in their field.
A firm that has worked for businesses in your industry and niche will already know the related problems and be able to provide customised bookkeeping services to you. In addition, they know the latest changes in the rules and execute your books accurately.
What is Virtual Bookkeeping?
Virtual bookkeeping is the same as traditional bookkeeping. Similar to a traditional bookkeeper, a virtual bookkeeper handles your financial activities, such as data entry of your transaction info, bank and credit card reconciliation, and payroll processing.
Whereas traditional bookkeepers do their tasks in your office, virtual bookkeepers do it remotely using cloud-based accounting software. This is also called online or remote bookkeeping.
Job Description of a Virtual Bookkeeper
Virtual bookkeepers execute your organisation’s daily financial tasks. However, they do not visit your office physically and work remotely using an online platform like a cloud-based bookkeeping and accounting software.
Here is a list of tasks that you can expect from a virtual bookkeeping services firm:
- Accounts payable and receivables
- payroll processing
- Reconciliation of bank accounts and credit cards
- Management of expenses
- Management of bank and credit account
In addition to the software, they may also use a communication tool to remain in contact with you.
How Does Your Virtual Bookkeeping Services Provider Work?
It is crucial for you to know how a virtual bookkeeping services firm works. Let us start by understanding how they access your business’ financial data securely.
How virtual Bookkeepers Access Your Business’ Financials
As has been mentioned, these bookkeepers use cloud-based accounting software to work on your data. These tools are secure and make it easy for them to monitor and manage your business data.
These bookkeepers have real-time access to data. Your data is transmitted in encrypted form securely. These tools also use multi-factor authentication to protect your data.
Tools of Virtual Bookkeepers
Virtual bookkeepers use cloud-based accounting systems and various other tools. These platforms enable this bookkeeper to work remotely and update your books promptly.
Process Followed by Virtual Bookkeeping Services
Your virtual bookkeeping services provider starts by setting up your company using the selected cloud-based bookkeeping software. Their experts then connect your accounts and start recording your financial transactions. These are automatically or manually classified for accuracy.
At the end of month, quarter, or financial year, their bookkeepers reconcile your bank accounts and generate financial reports. They do all these tasks within the Singapore Financial Reporting Standards (SFRS) framework.
They keep in touch and update you using regular video calls and emails. They ensure that your books are updated on time and accurately so that you can access the latest financial information for decision-making.
Benefits of Virtual Bookkeeping Services
Small business owners prefer bookkeeping services over in-house bookkeeping because of the advantages they get. The most important of these are reduced costs, streamlined financial operations and real-time insights into business’ performance.
Saving Costs
Your virtual bookkeeping services provider can help you save money. You must have noticed that traditional bookkeeping firms require support from your side. I mean in-house staff and related expenses. It is not the case with virtual bookkeepers services.
Their bookkeepers work remotely and don’t need any of your premium office space, employee benefits or salary. They have their own infrastructure and software systems. You only pay for services you signed them for, saving you money.
Scalable and Flexible Bookkeeping Solutions
Your online bookkeeping services firm can provide you with scalable and flexible bookkeeping solutions to meet the needs of your growing business.
They can easily absorb the increased transaction volume and complex financial processes at affordable prices. Check out their pricing plans and packages.
Monitoring Your Financials Real-Time
Traditional bookkeeping may not give you a real-time view of your data. It means you don’t have the exact status of your financials, which can lead to difficulties in decision-making.
Your virtual bookkeeping services enable you to access your financial info, records, and reports from anywhere. It gives a competitive edge to your business decisions.
Selecting a Virtual Bookkeeping Service for Your Business
The best bookkeeping services firm can assist you streamlining your accounting, HR, and payroll processing. You need to invest time in choosing the right one.
Selecting a Provider
First of all, you must analyse your business needs and objectives. Brainstorm with your team and consider factors like:
- Business size
- The volume of financial transaction
- Financial activities
Ask questions to know the provider’s overall experience, qualifications and whether they have expertise in your industry and niche. Choosing someone familiar with your industry and business niche will ensure they know industry-specific nuances and can handle them by providing customised solutions.
Know the Systems and Tools They Use
Virtual bookkeeping service providers use cloud-based bookkeeping and accounting software and other tools. You must ask questions to know more about these to know how a firm will leverage these systems and integrate them with your existing tools.
Focus on knowing about real-time updates, data security, and whether it allows or automated reconciliation.
Must I Hire a Virtual Bookkeeper?
If you maintain an in-house team but need a certain skill set and speciality services, then you need to hire a virtual bookkeeper services provider. Their bookkeepers can help you take care of bookkeeping and complex task like outsourced CFO.
Not Before Reading Customer Reviews and Testimonials
Before you choose a provider for you, don’t forget to read customer reviews and testimonials written by their past customers. This will give a peek into their reliability and effectiveness. Invest some time in exploring.
Hiring a virtual bookkeeping services provider is a trend. We are a professional bookkeeping and accounting service provider that can save you time, effort, and money. We can also use your niche-specific bookkeeping knowledge to update your books. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to know our affordable customised bookkeeping solutions.
Also Read: 9 Pro Tips for Hiring Bookkeeping Services Singapore for Small Businesses
