A virtual bookkeeper is someone who works and operates remotely, trained by using the latest software to accurately and efficiently process financial transactions for his clients. Virtual bookkeeping is not location-dependent. A virtual bookkeeper can offer services anywhere and anytime to clients without leaving his home or office. The internet, latest technologies and cloud services all make this possible.
A good virtual/ outsourced/ online/ cloud/ remote bookkeeper processes all the financial transactions for your business. This includes preparing invoices, collecting payments, managing cash, entering vendors bills and payments. It updates credit card transactions and booking payroll items in the general ledger. Supports the Controller/Accountant with the monthly closing reports. Reminding customers for payment and responding to any inquiries. The operation of virtual bookkeeping can go on and on. A good Virtual Bookkeeper operation can inform you of problems you may not have otherwise known about.
One example is cash collections. During the aging of accounts receivable , someone needs to remind customers that their account is past due. A Virtual Bookkeeper operation will do this for you. During those calls, however, the bookkeeper may discover other issues that are preventing payment, such as a product quality problem or problem in product/service delivery. A good bookkeeper asks more questions of customers to uncover problems. When they find one, they will inform these findings to management for corrective action.
The relationship of virtual bookkeeping can be very beneficial for both the bookkeeper and the business owner but, done poorly, that relationship will fall over. Unfortunately, as with any system, things can go wrong. Some of the common problems are: failing to communicate in a timely manner, failing to provide documents by the due date or providing incorrect documents, misinterpreted information and instructions, no internet connection, software runs poorly and difficulty in communicating with accountants on a regular basis. There might be more problems but in the real bookkeeping world, positive aspects and benefits always outweigh the negative ones.
With all the latest automation that is available and helping businesses conduct their business, it is only a matter of time that business owners has to keep up and change how they operate. Because of the major advancements in mobile and online technology coupled with affordable applications, business owner has to include how they get their bookkeeping done. So the challenge is, if these changes are coming and they will – whether we like them or not – how do you prepare and what will you do to your business bookkeeping in the future?