A Compressive Guide of Virtual Accounting & Bookkeeping for Small Business

Virtual Accounting & Bookkeeping

Company leaders across the globe are refurbishing their learning philosophy by laying out the strategies to lead their teams virtually as a part of building social capital and crafting an ecosystem of learning partners to create and deliver digital content. The existing post-pandemic crisis has further hastened the echelons of digitization to reduce unnecessary and avoidable physical interactions.

With the alterations in economic landscapes and the existence of the supply and demand disparity, the world of Accounting is also trying to build a perfect blend between finances and technology, via virtual accounting and bookkeeping services. The introduction and use of software (technology) applications have made significant revolutions in the accounting world.

The Bureau of Labor Statistics (BLS) noted that while the work environment for accountants is often a traditional brick-and-mortar workplace, about 1.4 million accountants across the U.S. are working remotely and scheduling flexibly as independent contractors in 2019.

By definition, “ Virtual Bookkeeping is a way to record, store, and manage all financial transactions for a business from a remote location.”

In layman's understanding, virtual bookkeeping usually refers to online bookkeeping services wherein an outsourced contractor helps with monitoring individual accounts, filing taxes, preparing financial statements, and more; enabling firms both large and small to get expert record-keeping with greater flexibility and reduced cost.

There are mainly three ways to work remotely with clients that use cloud technology:

• Accessing remotely the client’s system to carry out bookkeeping tasks

• Working through an online cloud-based bookkeeping software (such as QuickBooks Xero Wave or SAGE) with secure login.

• Accessing through a hosted virtual desktop while using the same desktop software

Virtual Bookkeepers apart from data entry and receipt tracking are also responsible for drawing up to four significant financial statements:

• Balance sheets, or a summary of the client's financial position

• Income statement, or a look at the client's income and expenses over some time

• Statement of changes in equity, or a statement of retained earnings, which shows owners share capital, retained earnings and reserves change over some time, and

• Cash flow statement, or a record of the cash and cash equivalents that enter and leave the company.

Accounting is a wider perspective often referred to as the maintenance and recording of every financial transaction a business enterprise undertakes during a stipulated performance year, encompassing a variety of specialized roles such as financial accounting, auditing, budgeting, government accounting, forensic accounting, and certified public accounting.

However, the biggest challenge to outsourced remote accounting is the dilemma in which business models and clients find themselves as to whether their information is in safe hands or is on the edge of the threshold to getting stolen or at the risk of getting attacked digitally. To mitigate such Data Security risks, various cutting-edge cyber Security technologies are being brought into play.

In a nutshell, this digital transformation has made it potentially feasible to scale up data-driven decisions, the accuracy of data permitting greater performance and greater effectiveness in prospects building up digital and cognitive competencies.
Remote working has become a need even before the crisis, but the pandemic has rooted that telecommuting is here to stay.

Global FPO leader in Virtual Bookkeeping & Accounting space. Their strong talent screening & hiring process, 10+ years of professional, strong knowledge of accounting and Bookkeeping software, and a strong process-based approach leads to a simplified seamless experience for businesses across USA & Canada. The Company is led by seasoned Accounting & Tax professionals who ensure customer experience is their top priority.

So, once you think about Virtual Accounting, do connect with Global FPO to understand how you can have a seamless experience at very competitive fees.