Virtual vs. Online Bookkeeping: Which One Is Best For Your Company?
- by Teailor Team
Presently, more and more people are inclining towards their startups and businesses. This increasing demand and internet convenience have enabled entrepreneurs to go for hiring accountants and bookkeepers online. This is because choosing virtual and online bookkeeping gives you more profits by allowing you to give access to hundreds of bookkeepers who can work for you without stepping inside your office.
But how will you decide which one is right for your company between Virtual vs. Online Bookkeeping? Is there any difference between the two? What are these options mean? Let’s explore each question in detail.
Virtual vs. Online Bookkeeping
When entrepreneurs or accountants refer to bookkeeping and accounting services, they interchangeably use terms such as “virtual”, “online” and “outsourced.” But there are some small differences between the online and virtual one.
Virtual means a bookkeeper is working with the persons online and not physically i.e through an online network or computers. This type of bookkeeping implies that a single bookkeeper is working from home.
Just like traditional bookkeepers they also handle tasks like recording transactions, processing payroll, reconciling bank accounts as well as credit card accounts. The only difference is that a traditional bookkeeper has to be available in your office to perform these works. But a virtual one manages everything at home via cloud-based software. It is also known as remote bookkeeping.
Here, you need to make sure that choose a qualified bookkeeper to handle your company’s finances and he/she should be accurate, reliable, comprehensive, and timely.
Responsibilities of Virtual Bookkeeper
The major task of the virtual bookkeeper is to summarize and document every earning and expense. The most common tasks of a virtual bookkeeper are:
- Recording credits, and debits transactions.
- Documenting receipts for each transaction.
- Processing banking activities
- Updating the ledgers orderly.
- Reconciling accounts accurately.
- Issuing payrolls.
- Informing management of any kind of financial issues and changes.
- Delivering financial reports daily.
- Monitoring cash flows.
- Checking the annual budget of the company.
- Paying taxes and monitoring tax returns.
When you hire a virtual bookkeeper, it costs less to your company as they don’t need office space or supplies. Plus, those on contracts don’t need benefits, insurance, or employment taxes which helps the employer to save more. Virtual bookkeepers can work according to your requirement be it part-time, full-time, or freelancing.
This is extremely beneficial for smaller companies that don’t need a full-time bookkeeper or whose financial conditions fluctuate.
It also benefits bookkeepers as they can choose how they want to work. This is because many employees are single parents, disabled, or take care of their elders and they want to work by staying at home.
The moment the bookkeeper completes the assigned task, he/she can work autonomously. Virtual bookkeeping helps employees to save the cost of gas, child care, and automobile maintenance. Not only this, but ambitious virtual bookkeepers can also work for multiple clients.
Online accounting is extra robust. The companies offering this option have a software package, reporting structure, and online service packages. Those companies who don’t have any big financial needs prefer online bookkeeping.
The online one works as an accountant as well as a part-time bookkeeper as the companies make use of top-notch technology to run bookkeeping and accounting work smoothly.
Online bookkeeping services include offering high technology and professional guidance to clients. This option is provided by those companies only who have top-notch accounting software and expert staff with high knowledge of the present market.
Online services are helpful for small businesses as the companies use the latest software and expert workforce. They provide online bookkeeping services with a little margin of error.
The point to note here is that online bookkeeping companies handle financial tasks like taxes, record keeping, payroll, and reporting. So, in case you need more accounting strategies and details accounting then you might need to recruit a financial officer.
2020 Top Online BK Services
- QuickBooks Live- Dedicated bookkeeping team, Virtual support, Free consultation.
- Bookkeeper.com- Uses QuickBooks, Accrual, and cash, Business advisory service.
- Bench- Desktop, iPhone app, Scalable plans, Free trial.
- Bookkeeper360- Cash flow analysis, Real-time metrics, Best for Xero users.
- Merritt Bookkeeping- Uses QuickBooks, Discount for old months, 90-day money-back.
- Pilot- Support included, Offers Xero migration, Pre-revenue organization discount
- Botkeeper- Best for outsourcing bookkeeping to accounting firms, Add-ons available for CFO, tax, invoicing, and bill pay services.
- Sunrise- A sophisticated software for bookkeeping assistance, free availability, cancel the contract anytime.
You can choose any of these best online bookkeeping services as per your requirements.
Bookkeeping is a complex task and a time-consuming process that should be performed accurately. This is why many companies are going for online and bookkeeping services.
Before you decide to use online bookkeeping services or virtual bookkeeping services, make sure to check references. Check for the names and details of the previous clients to understand how the company works and whether it can fulfill your work demand or not. Do not ever forget to do this as you should go for that company only that has a good reputation and track record.
We hope that the information provided above is sufficient enough to help you decide on Virtual or Online Bookkeeping for your business. If you have any query about any element in this informative post then write it down in the comments section below. We will surely come back with the best response.
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