How to Hire the Best Virtual Bookkeeper Online

Virtual Bookkeeper

Published: 06/16/22

In today’s world, the internet is used for everything. Be it online shopping, online fitness training, or balancing your chakras. Why can’t you hire a virtual bookkeeper as well?

Virtual bookkeeping and accounting services might relieve you of your bookkeeping responsibilities for good. All of the time you spend on mundane duties like journal entries in a general ledger can be transferred to growing your company.

However, virtual bookkeeping (remote bookkeeping) has both advantages and disadvantages. Let’s take a look at how virtual bookkeeping works and see if it’s a suitable fit for your company.

 

What is virtual bookkeeping, and how does it work?

Your bookkeeping is handled remotely by a virtual bookkeeper, who may or may not live in your area or even in the same time zone as you. Bookkeeping software handles all communication and the storing of financial documents. Your virtual bookkeeper organizes your transactions and provides financial reports for your company.

It is a full-time job to do virtual bookkeeping. Your bookkeeper has a client list, but they’re always ready to answer inquiries or have a talk about your money. Their flexible schedule allows you to obtain the same level of communication as a full-time bookkeeper at a fraction of the cost.

 

Importance of Bookkeeping

Bookkeeping is beneficial to all businesses, from the largest enterprises to pre-revenue startups. Business owners can make informed budgeting decisions, find potential tax deductions, and have stress-free tax seasons with up-to-date financials. Financial statements, such as your balance sheet and income statement, are created by bookkeeping and contain important information about profitability, your cash flow, and business health.

To prepare for tax season, every business needs basic bookkeeping. Top-tier businesses, on the other hand, rely on up-to-date books that allow them to optimize their revenues, cut costs, and make wise investments.

 

What are the benefits of hiring a virtual bookkeeper?

  • You’ll profit from a virtual bookkeeper’s assistance if:
  • You’re wasting too much time and energy doing your own bookkeeping.
  • Your finances are out of date, and you require assistance in bringing them up to date.
  • You want next year’s tax season to be less stressful than the previous one.
  • You want to keep track of your expenses so you can deduct them from your tax return.
  • You’ve been paying accountants to go over your books at the end of the year so that they can submit your taxes.
  • You have no idea how much money your company makes each month or how much cash it has on hand.

 

If your company mostly deals with digital transactions rather than cash transactions, virtual bookkeeping can be extremely beneficial. While a virtual bookkeeper can manage monetary transactions, categorizing digital transactions is faster and easier for them (like Shopify, Paypal, debit, and credit card transactions).

 

Virtual bookkeeping vs. local bookkeeping

When it comes to bookkeeping, there are two options: virtual bookkeeping and local bookkeeping.

Local bookkeepers have traditionally been the primary choice for small businesses. In the past, you’d engage a bookkeeper from your neighborhood, perhaps a self-employed individual or a bookkeeping corporation. Then, once a month, you’d send your financial transaction records, and they’d handle all of the data entered.

Virtual bookkeepers and most local choices now use the same bookkeeping software. With the use of software, bookkeepers can automatically record transactions, categorize them, and generate financial reports by synchronizing with their bank accounts and credit cards.

In fact, you might discover that meeting with your local bookkeeper once in a while can do the job. That’s because both local and virtual bookkeepers are becoming increasingly similar in terms of both services and delivery methods. However, there are a few distinctions.

 

Virtual bookkeepers vs. local bookkeepers

Local bookkeepers Virtual bookkeepers
Paperwork You can hand deliver receipts, bank statements, and supplier invoices to a local bookkeeper if you deal with a lot of paper financial records. You’ll need to photograph or scan documentation before sending it to a virtual bookkeeper.
Software options The majority of local bookkeepers use accounting software that is available on the market. In order to check your books, you’ll need to buy this software and learn how to use it. While some freelance bookkeepers still use off-the-shelf software, services like MyCountSolutions allow you to check your books with a tailored platform that is simple to use for business owners.
Mobile access You may not be able to verify your books on your mobile device depending on the software that your bookkeeper uses. MyCountSolutions, for example, has a mobile app that allows you to monitor your financial statistics on the go.
Online business experience A local bookkeeper might not be familiar with eCommerce or payment platforms like PayPal. Online businesses like virtual bookkeepers—after all, virtual bookkeeping organizations are online as well. They are more likely to be familiar with difficulties that are unique to internet firms.
Tax time At tax time, a local bookkeeper can give over your books to a CPA, who will use the information to submit your taxes. Some virtual accounting services, such as MyCountSolutions, will handle your tax filing as well. This is something that most online freelancers do not provide.
Payment Local bookkeepers normally charge by the hour and have a monthly minimum rate. Online freelancers, like local bookkeepers, normally charge by the hour. Online bookkeeping services like MyCountSolutions, on the other hand, charge a single monthly fee.
Price Local bookkeepers are scarce, and they typically charge more than virtual bookkeepers. Virtual bookkeeping services are typically less expensive than local bookkeepers.

 

Types of Virtual bookkeepers

Virtual bookkeeping solutions are divided into two categories: freelancers and services.

 

Freelancers

Sites like Upwork are used to hire freelancers. They have a wide range of expertise and education because bookkeepers aren’t required by law to have specific certifications.

To examine your books and help your virtual bookkeeper categorize any transactions they’re unsure of, you’ll probably need off-the-shelf accounting

Services

Virtual accounting services often provide you with a team of bookkeepers to help you with your bookkeeping (like My Count Solutions does)

Individual freelancers are less sophisticated than virtual services. You won’t be worried about your bookkeeper taking a trip or getting sick because they normally have entire teams. They frequently come with more advanced capabilities, such as a specialized app.

My Count Solutions, for example, connects directly to your credit card account accounts to pull transactions automatically. Then we classify each transaction and generate gleaming financial statements for you. To keep track of your funds, we also provide you with a simple platform with basic reports and dashboards.

If you have any issues or need to upload any documents, you can message your bookkeeper directly.

If you’re behind on your books and have complex bookkeeping needs, we can help you catch up for $325 each month. We can even help you file your taxes.

 

What factors should you consider while hiring a virtual bookkeeper?

Choosing what’s right for you begins with your bookkeeping needs, whether you go for a freelancer or a solution like MyCountSolutions. Here are some key questions to consider when selecting the finest virtual bookkeeper for your company:

 

What to ask How to choose
In a typical month, how many deals do you make? Because freelancers are paid hourly, more transactions imply more costly bookkeeping. In order to quote you an estimated monthly charge, they may have to know how many transactions you make per month.
Do you account on an accrual or cash basis? Some virtual bookkeepers specialize in one method or the other.
Do you have an Accountant who prepares your taxes already? Make sure that the virtual bookkeeping service you select can either work one-on-one with your Accountant or connect you with a trained CPA who can handle your taxes.
What is the importance of availability? During the holidays or busy times of the year, such as tax season, a freelance virtual bookkeeper may be difficult to reach. This is less likely to occur with online services.
What is the maximum monthly payment you can make? This can help you cut down your options and avoid wasting time organizing meetings with bookkeepers you can’t afford.

How do you evaluate virtual bookkeepers?

What kind of internet persona do they have?

A virtual bookkeeper’s lack of a website, internet profile, or social media presence could indicate inexperience or unreliability. Examine their LinkedIn profile to discover if their previous experience matches your company’s requirements.

 

What are the opinions of the critics?

If you can’t locate any online, ask the bookkeeper if they have any testimonials or can link you with some recent clients.

 

Do they have any prior experience in your field?

You could be better off hiring a virtual bookkeeper who has experience with firms similar to yours. They’ll classify transactions for you and be more knowledgeable about tax deductions and credits that apply to your company.

 

Do they utilize any software that you’re familiar with?

Accounting software like QuickBooks Online or Xero is used by many virtual bookkeepers. Both are simple to use for bookkeepers and accountants, but they do take some time to learn for the average small business owner. You’ll have a smoother onboarding experience and be ready to hit the ground running if your virtual bookkeeper employs software you’re familiar with.

 

The top virtual bookkeeping services

 

Every small business requires bookkeeping that has been simplified by experts. My Count Solutions manages your finances with an online-optimized procedure and specialists. Among the services they provide are:

  • Accounting Services
  • Tax Preparation Services
  • Payroll Services
  • Audit Representation Services

The goal is to lend a hand to small businesses by ensuring that they are in compliance with state and federal tax laws. Using My Count Solutions’ services gives clients leverage because they may nominate their top accounting experts with extensive experience for the job. As a client, you will have the opportunity to tailor the crucial budgetary records to your own business requirements.

Pros 

  • Allows you to select the package that is most appropriate for your company and provides dependable financing solutions
  • Offers a one-month free trial.
  • Provides services to organizations that require basic accounting as well as advanced audit representation and tax preparation.
  • At each stage of the process, financial specialists examine your money.
  • Within 24 hours, we will respond to any inquiries.
  • Has access to the most recent cloud technology
  • Provides services to a wide range of enterprises, including restaurants, clinics, and corporations.
  • Provide the highest level of security and openness.
  • Financial Statements and Reports that are Easy to Understand

 

Small business owners can use the Wave suite of tools to manage tasks like invoicing, payroll, and accounting/bookkeeping. It’s completely free to utilize their cloud-based accounting software.

Wave claims to handle your bookkeeping for you with their Wave Advisor service, which uses their free cloud-based accounting software. While Wave bookkeeping starts at $149 per month, it’s tough to say how much it’ll cost your company. There are no publicly published pricing tiers; to acquire an estimate, you’ll need to schedule a conversation with Wave.

Pros

  • Saves time
  • Stunning user interface based on the Google Material Design trend.
  • Reduced data entry
  • Collaboration and Notifications
  • Multiple Invoices Must Be Paid
  • Setup is simple.
  • Get fast access to all accounting features on your tablet or smartphone
  • Automated reconciliation using bank interfaces.

 

Equity provides organizations with a variety of virtual services, ranging from administrative assistants to paralegals. One of these services is bookkeeping.

Pricing is $210 per month for 5 hours of administrative assistance with your books. As more hours of labor are required, the price rises for larger businesses.

Equity does not employ its own software, despite having a reasonably comprehensive bookkeeping package. If you sign up for Equity, your virtual bookkeeper will manage your bookkeeping for you using QuickBooks or another off-the-shelf accounting tool. To help categorize transactions or manually enter transactions, you’ll need to learn how to utilize this software.

 

Pros

  • Accounting software set-up
  • Consulting and external CFO
  • Prepare activity statement requirements 
  • Prepare payroll tax
  • Reporting and budgeting 
  • Data entry and reconciliation
  • Superannuation
  • Cover payroll requirements

 

How can My Count Solutions help?

 

Hiring an online accounting service may appear to be a simple option, but it has a significant impact on your one-person business and can help it develop. My Count Solutions’ bookkeeping professionals streamline the process for you, managing your funds, preparing financial statements, and filing your taxes. You may get bookkeeping services at a fraction of the cost and in a simple and efficient method. My Count Solutions provides the following services:

  • Consultation on finances
  • Maintain a seamless business operation.
  • Bookkeeping from afar
  • Stress-free filing of taxes.