When starting a business, activities like invoicing, accounts receivable (AR) & accounts payable (AP) and bookkeeping seem simple. However, managing finances becomes a mammoth task as a small firm expands. At some point, handling all the bookkeeping responsibilities becomes almost impossible. According to the Owl Labs report, 16% of firms work remotely, and even more choose a hybrid option, combining in-house and remote specialists. It is where the virtual bookkeeping assistant comes to the fore. Read the article to find out how such a specialist can transform your busy work life into a balanced one.
What is a Virtual Bookkeeping Assistant?
A bookkeeper assistant is a specialist who can perform all administrative bookkeeping tasks so that you may deal with other, more critical business-related questions. Such an assistant monitors all operations in and out of the firm and finds suspicious data or inaccuracies.
At the same time, recruiting an in-house employee, especially if you run an online business, may mean unnecessary costs. Besides, this option limits the number of applicants the firm may receive to those looking in your city. Therefore, partnering with a virtual assistant (VA) can be the most effective solution.
Such a specialist performs all the same work as a personal bookkeeper, including financial transactions management, payroll, cash flow reports, AR/AP, invoicing, financial statements, and tax reporting. At the same time, they don’t need to set up a workplace in the office, buy equipment, and provide transportation and insurance. Qualified VAs use cloud accounting and other technologies to perform their tasks effectively.
Why is Employing a Virtual Bookkeeping Assistant Important?
There are many benefits to recruiting a virtual bookkeeping assistant. We will highlight some of them below:
- Expertise: Cooperation with the VA may significantly assist an entrepreneur in managing his financial situation. About 31% of business owners admit that they trust their bookkeeping specialists. They listen to their professional advice. Such assistants may create accurate reports, monitor the flow of funds, and define sectors for improvement. In addition, they can apply standard applications and cloud solutions tailored to your unique needs.
- Saving opportunity: You should outsource bookkeeping to save funds in the long run. It will help you track your spending and define potential sectors of reduction. As a result, this allows you to eliminate unnecessary spending and increase profits. In addition, you will not have to pay wages and other benefits as if you recruited an in-house bookkeeper. Let us remind you that the basic salary of such specialists starts from $40,000 per year.
- Creating an adequate cash flow: Interaction with an online bookkeeper is the best option for creating a positive cash flow. Such professionals may manage your accounts payable and receivable. They will help with invoicing and ensure timely payments. It prevents cash flow troubles that could harm your business in the future.
VAs are professionals in their field. They have specialized knowledge to help business owners manage capital more effectively. They may also provide advice on tax matters and filing tax returns.
Key Considerations for Employing a Virtual Bookkeeping Assistant
You must follow best practices to recruit a VA to find the right service provider. Let’s look at the main factors you need to consider when you try to find a specialist in accounting services.
Determine your needs
Try to understand what tasks and responsibilities you will delegate to a VA before seeking one. Write down the specific tasks you plan to delegate. You need to set guidelines, outline tasks, and define the work.
Check the qualifications and skills of service provider
When selecting a company, it is critical to ensure they have the necessary knowledge and skills and share the values of your firm. Here are some things to consider when selecting and checking:
- Ask for work samples: Ask the provider to provide samples of past work and a list of typical tasks they are willing to perform. Find out what virtual technologies specialists use to assess the possibility of synchronizing them with existing systems.
- Check references: Reach out to past clients or applicants’ employers to learn more about their performance, reliability, and skills.
You may identify applicants with the qualifications and qualities to succeed as bookkeeping assistants through careful screening.
Set your communication expectations
Communication is vital in a virtual environment. As you review candidates, talk about your style and communication type. Ensure you hire an expert who responds quickly and communicates effectively via email, phone, instant messenger, video, etc. Having a stable connection helps you get far when an emergency arises. Set boundaries and expectations early to avoid disagreements and disappointment in the future.
Check out our specialist safety precautions
Security is key in a virtual work environment. The VA has access to your sensitive financial data, meaning that if you are ever exposed to a security risk, so is your information. Review the security measures, and don’t hesitate to ask how your data will be protected.
Agree on final terms
When you find a service provider who meets your requirements, you need to discuss all the terms of virtual bookkeeping services. Determine your needs and review the agreement. Pay attention to and correct any points that are not sufficiently specific, including scope of work, payment schedule, and confidentiality. Before starting an interaction, make sure both parties have reached an agreement.
Monitor the activities of specialists
Time will tell if you made the right choice. Keep records of purposes, deadlines, and schedules. Compare reality with stated intentions and evaluate whether they coincide. If the specialists are not meeting your expectations, discuss how you can help to improve their performance.
Tasks to Outsource to a Virtual Bookkeeping Assistant
Cooperating with virtual assistants lets entrepreneurs eliminate time-consuming financial functions that take up much time. These tasks may vary from business to business, but here are some options:
- Work with accounts receivable: VA may send invoices to customers and track payments received and any outstanding payment documents.
- Work with accounts payable: The assistant can process bills and invoices received from the partners, enter them into your financial software, and manage the payment process.
- Bank and credit card reconciliation: The specialist will compare the operations shown on your bank statements with the entries in your books. He may define and correct any discrepancies.
- Expense classification: The assistant may analyze and classify expenditures into various groups, e.g., office supplies, operating spending, transportation expenditures, etc.
- Financial reports preparation: A qualified assistant will prepare financial documents, including a balance sheet, profit and loss statement, and cash flow statement. This will help you analyze your firm’s economic performance.
- Payroll: The VA can calculate staff payroll, process payments, and answer employee questions about compensation.
- Budgeting: VAs help create budgets and economic forecasts. They will help you track actual costs compared to planned values, find deviations, and provide data to improve financial planning.
By eliminating geographic restrictions, companies gain access to a global talent pool, potentially finding specialized skills that meet their unique requirements.
Tips and Reminders for Employing a Virtual Bookkeeping Assistant
Follow several recommendations to ensure effective interaction with a virtual assistant. Below, we will discuss the most important tips:
- Review your financial report regularly: Strategic decisions are based on accurate data. By frequently reviewing financial reports, business owners understand their financial decisions, allowing them to choose the best strategy to expand their firm. Whether it’s budgeting, an expansion project, or new product development, reporting analytics ensures decisions are based on accurate, up-to-date data. Regularly checking reports can also serve as an early warning system for potential fraud.
- Maintain open communication: Communication is a two-way process that requires you and your assistant to make, understand, and respond to each other. Establish open and flexible communication with the financial expert, listen to their opinions, suggestions, and problems, and be prepared to solve them. You should also be flexible and adapt to any changes or challenges in your bookkeeping goals or requirements and communicate them to your financial professional as soon as possible.
- Ensure data security and confidentiality: Sharing financial data with the VA raises security and privacy concerns. To protect yourself from unauthorized access, we recommend choosing secure cloud accounting software and data encryption protocols.
Such recommendations will help establish a trusting and long-term relationship with your virtual bookkeeper.
Closing
We realize in business, especially in the early stages of its activity, saving on various items of your expenditures makes sense. Whether you own a multimillion-dollar corporation or a craftsman who sells your goods on eBay, handling your business’s finances can be challenging. And with all the time, capital, and talent you’ve put into making your idea a reality, you can’t afford to have your books in clutter.
If you’re willing to delegate some of your responsibilities to a virtual bookkeeping assistant who enjoys bookkeeping, let the experts at BooksTime give you the most valuable asset an entrepreneur can have: time.
