Let’s start with the basics – What is a bookkeeper? If you’re an existing business owner or thinking of launching your own, the benefits of a knowledgeable bookkeeper are invaluable to the success of your business. Most entrepreneurs and small business owners have a lot riding on their shoulders; throw the heavy responsibility of managing the finances, bi-weekly payroll, tax payments and more on top of everything else and the weight can become unmanageable. For those who are feeling the burden of those responsibilities, imagine being able to take the pressures of managing the finances off your shoulders.
Messy financial records or missed tax payments have serious consequences to the health of a business – this is exactly where bookkeeping comes into play! Traditionally, bookkeepers have been positions employed by people who work in-person, within an organization. Depending on the size of your business, this isn’t always an easy option. Even if it is an option, it still might not be the best or most cost-effective option. However, this important position shouldn’t be neglected.
In short, a bookkeeper is responsible for managing a general ledger, or the financial records of all the businesses’ debits and credits. Pristine records need to be maintained in order to produce financial statements and reports. Without these there’s no real way of understanding the health of a business or ensuring payment deadlines are being met! Any smart business owner knows how important it is to understand where the money is going, so decisions can be made based on revenue and expenses.
Benefits of a Virtual Bookkeeper
With the advances made in remote employment opportunities, a virtual, or sometimes called remote, bookkeeping system is all the more possible and advantageous to so many industries! Rather than paying a full-time employee as a bookkeeper and providing this person with office space, benefits, etc. many are realizing a virtual bookkeeper is a beneficial way to fulfill the financial needs of their company, at a fraction of the cost! Additionally, the search for a virtual bookkeeper opens the hiring pool to many more possibilities, which offers you the opportunity to find a bookkeeper who is a perfect match for your unique business needs.
What Does a Virtual Bookkeeper Do?
A virtual bookkeeper performs all the same tasks of an in-person bookkeeper, but can work from anywhere in the world. You may never meet face-to-face, but interact through email, phone calls and video chats. The business would grant remote access to the company’s financial records and accounting software, such as QuickBooks Online, so everything can be accurately handled from a distance. Although the services offered may be different from person-to-person, here are some of the most common tasks a virtual bookkeeper can perform to help your business thrive:
- Record Keeping and Data Entry: The foundation of bookkeeping is flawless data entry and financial record keeping. With remote bookkeepers, this will often happen using an online, cloud-based system like QuickBooks Online or something similar.
- Accounts Payable: The account that manages the money the business owes creditors, vendors, etc. Your bookkeeper will help make sure you’re not falling behind on payments.
- Account Receivable: The account that manages the money that is owed to the business from services provided. Your bookkeeper will help make sure you’re business is receiving the money it is owed.
- Expense Management: This is the process of managing and tracking all of a business’s expenses – a key area in maintaining the financial health of your business.
- Receipt Management:The safekeeping and recording of all receipts so accurate financial information can be verified for years to come.
- Bank Account Reconciliation: The process of ensuring the financial records of the business match the bank statements. This helps protect against fraud and ensure there’s a clear understanding of the business debts and expenses.
- Financial Reporting: Designated reports that help determine profits and losses, balance sheets, accounts management and more. Detailed reports are an important part of understanding the success and pain points of the business.
- Tax filings: Filing and making payments toward all monthly, quarterly and annual tax requirements.
- Payroll: Processing payroll for employees, paying payroll taxes, and managing payroll reconciliations.
As you can see from this important list of tasks, there’s a lot to handle when it comes to the financial health of any business. As a business owner, passing these stressful tasks to someone with experience and knowledge is an enormous relief!
If you’re searching for someone to help relieve the burden so you can focus on growing your business, Coastal Bookkeeping & Notary Services can provide you with the peace of mind you need to run your business with all the energy and focus you would otherwise be spending on the financials!