7 Reasons Why Your Business Should Hire a Virtual Bookkeeping Service

If COVID taught us one thing about business management it was that working virtually can actually be more productive and effective than the traditional, “keep everything in-house” model.

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From outsourced IT support to web design to accounting and virtual bookkeeping, businesses now recognize that working with virtual services saves time, money and management headaches.

When it comes to keeping the financial books, a virtual accounting firm removes a lot of pressure of maintaining an in-house staff while providing a set of impartial eyes to assure that P&Ls, payments and invoices are accurately produced and processed.

What Is a Virtual Assistant Bookkeeping Firm?

A Virtual Assistant Bookkeeping Firm can handle a range of bookkeeping tasks for your business, but some of the most basic and common duties include:

Data Entry and Processing

Recording financial transactions like income and expenses.
Categorizing and organizing receipts and invoices.
Entering data into accounting software.
Maintaining accurate and up-to-date financial records.

Reconciliation

Matching bank and credit card statements with your accounting records to ensure accuracy.
Identifying and resolving any discrepancies between accounts.

Reporting

Generating basic financial reports like profit and loss statements and balance sheets.
This can help you understand your business’s financial health.

Accounts Payable and Receivable Management

Creating and sending invoices to clients.
Tracking outstanding payments from customers.
Processing and paying bills to vendors on time.

Other duties may include:

Managing payroll (may require additional expertise)
Creating and maintaining a general ledger
This is a central record of all financial transactions.
Assisting with tax preparation (often in collaboration with a tax professional)

Overall, a Virtual Assistant Bookkeeping Firm aims to streamline your financial processes, improve accuracy, and free up your time to focus on running your business.

Here are the top seven reasons why your business should consider hiring a virtual accounting and/or virtual bookkeeping firm:

Cost-Effectiveness
Access to Expertise
Scalability
Time Savings
Enhanced Data Security
Improved Accuracy and Efficiency
Strategic Insights and Analysis

1 – Cost-Effectiveness of Virtual Accounting

Traditional in-house accounting departments often come with hefty overhead costs, including salaries, benefits, office space, and equipment.

In contrast, virtual accounting firms operate remotely, eliminating the need for physical office space and associated expenses.

Going virtual eliminates the need for paying those employees payroll expenses, health insurance, 401k and other HR overhead.

By outsourcing your accounting needs to a virtual firm, you can significantly reduce costs while still receiving high-quality services.

In our experience, switching to a remote virtual accounting service paid major financial and organizational dividends for Avita Group, especially during the pandemic lockdown.

So much so that we continue to use an outside accounting service today.

2 – Access to Expertise With Virtual Bookkeeping

Virtual accounting firms employ experienced professionals who specialize in various aspects of accounting and virtual bookkeeping.

These experts stay up-to-date with the latest regulations, tax laws, and accounting standards, ensuring that your financial records are accurate and compliant.

By leveraging their expertise, businesses can avoid costly errors and make informed financial decisions.

Brendon Pack, CEO of 1800Accountant, is one of many highly educated and well-seasoned accounting professionals who chose to leave the grind of working for one company to, instead, create a virtual accounting firm that helps many businesses grow by staying slim on in-house personnel.

3 – Scalability

As your business grows, so do your accounting needs.

Virtual accounting firms offer scalable solutions that can adapt to your changing requirements.

Whether you need assistance with basic bookkeeping tasks or complex financial analysis, virtual firms can tailor their services to accommodate your evolving needs.

Similar to hiring a fractional CMO to build outside the box from a marketing standpoint, having an outside accounting firm provides valuable scalability to ensure you have access to the right level of support at every stage of your business’s growth.

Working with virtual bookkeeping firm keeps your office uncluttered from the backlog of invoices and other accounting paperwork

4 – Time Savings

Managing accounting tasks in-house can be time-consuming, diverting valuable resources away from core business activities.

Virtual accounting firms handle all aspects of financial management, allowing business owners and employees to focus on strategic initiatives and revenue-generating activities.

This time savings can improve productivity and contribute to overall business success. Business owners can spend more time growing their brand and acquiring new customers rather than managing tedious accounting issues.

5 – Enhanced Data Security

Cybersecurity threats pose a significant risk to businesses, especially when sensitive financial information is involved.

Virtual accounting firms employ robust security measures to protect client data, including encryption, multi-factor authentication, and regular security audits.

It’s important to stress the importance of vetting any potential offshore accounting agency. Understand what their specialities are. Ask to speak to current and past clients to see what their experiences have been.

Trust is of the utmost importance when it comes to your money, so don’t minimize the importance of thorough background checks and money balances.

By outsourcing your accounting needs to a reputable virtual bookeeping firm, you can rest assured that your confidential information is safeguarded against cyber threats.

6 – Improved Accuracy and Efficiency

Manual accounting processes are prone to errors and inefficiencies, which can lead to costly mistakes and delays.

Many virtual accounting firms leverage advanced software solutions and automation tools to streamline repetitive tasks and ensure accuracy.

By automating routine processes such as data entry, reconciliation, and reporting, virtual firms can enhance the efficiency of your financial operations and deliver timely insights into your business performance.

Now you’re armed with the weapons of intelligence to make smart business decisions going forward.

7 – Strategic Insights and Analysis

Beyond basic bookkeeping tasks, virtual accounting firms offer valuable insights and analysis that can help businesses make informed decisions.

By analyzing financial data and trends, virtual bookkeeping firms can identify opportunities for cost savings, revenue growth, and operational improvements.

These strategic insights empower businesses to optimize their current financial performance and thus achieve their long-term goals.

From cost savings and access to expertise to scalability and strategic insights, virtual firms offer a comprehensive solution for managing financial needs efficiently and effectively.

Avita Group – Digital Marketing Analytics Agency

Avita Group is one of the longest-tenured, five-star rated digital marketing agencies in California. Our clients often have had previous agency experiences and ultimately find a long-term home with Avita Group.

We offer fractional CMO services to boost your brand and your business by maximizing your SEO and PPC management, Online Reputation Management (ORM), and ways to become a LinkedIn ads expert to boost your business.

The Avita Group team boasts a collective experience of over 30 years in the industry led by Founder and CEO, Brad Weber, and has worked with a variety of multi-million dollar companies to help them improve their ROI, build better brand awareness, and mitigate negative online reviews.