Bookkeeping is quite comparable to visiting the dentist– not many look forward to it but if neglected, the end result could be disastrous. However, the huge availability factor provided by the online community has made it more practical for firms to just hire someone for the job without having to worry about the details. A virtual bookkeeping arrangement can be of great benefit to both the bookkeeper and the business proprietor in terms of cost and flexibility.
What is Virtual Bookkeeping?
Under the arrangement, the bookkeeper telecommutes instead of working at their client’s office in person. Besides working location, there’s not much to distinguish between it and conventional bookkeeping. The professional uses special software to post financial information, review and update the statements as well as reconciling the accounts.
How Does it Work?
To facilitate the operation, the firm simply makes their server, financial documents and software accessible to the bookkeeper. The latter then signs into the firm’s network from their PC, accesses the items and installs the firm’s software. Both parties need to agree on who will purchase and register the software that facilitates file transfer and communication. The bookkeeper may also operate either as an independent contractor or as part of the firm’s in-house staff as far as payment is concerned.
Benefits
Saving Time and Money
By outsourcing their bookkeeping operations, a firm is able to free up valuable man-hours that could be channeled into other operations. Generally, most businesses tend to find back-end office functions heavily distracting. In-house bookkeeping has also been known to result in conflicts of interests. Such time-wasting distractions can all be avoided by outsourcing.
The arrangement also helps save money in the form of full-time/part-time wages to internal staff. Further savings are also made by avoiding productivity losses that would otherwise result from hiring personnel and adding them to the payroll. Outsourcing means one only pays for what they need.
Expertise
Having auxiliary tasks like bookkeeping handled externally allows the firm’s management to focus on their own team. By entrusting the books to a highly-skilled professional, one can rest assured that they’ll know the best practices to follow. They’re also better placed at knowing how to staff certain tasks. All this makes the firm’s executive team’s own job much easier.
Scalability
Virtual bookkeeping also provides the flexibility to either expand or cut back in very little time. This becomes crucial when there’s immediate need to expand or slash spending. Different options and plans on how to achieve the firm’s core objectives can also be explored easily.
Telecommuting is becoming more common as firms seek balance between workloads and staffing arrangements. Eliminating distracting tasks from the premises certainly helps here. Outsourcing bookkeeping also helps the person focus on their responsibilities as well.
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