What are the benefits of using a Virtual Bookkeeper?

What is a virtual bookkeeper?

A virtual assistant can come in a range of guises, and thankfully, one is the virtual bookkeeper. Managing your accounts and finances can be tedious, complicated and frustrating. By employing a virtual bookkeeper, you can focus on the tasks that you excel in whilst they manage the company’s day-to-day finances. They can work from home (or the beach) and are usually a self-employed freelancer.

The average salary of a full-time bookkeeper in the UK is between £27,000 and £30,000. If you run a small or medium company, that’s quite a considerable chunk of the annual business earnings. It’s unlikely that you’ll have time to do the accounts on your own. There are alternatives such as purchasing accounting software or doing it all yourself. Accounting software can be complicated, costly and time-consuming, especially when you are at the learning stages.

Enter stage left, your virtual bookkeeper

A virtual bookkeeper is professional and can quickly manage all of your accounts before you submit them to your chartered accountant, who will then submit your annual tax returns. Generally, they will have access to the latest accounting software, unless you have a particular programme that you favour.

What are the five benefits of having a virtual bookkeeper?

The growth of your business will rely on the inflow and outflow of cash, and it’s essential to keep track of it. How can a virtual bookkeeper help improve your business?

1. They save you money! Not only because you are not employing your bookkeeper on a full-time salary, but they remove the task of bookkeeping from your already busy schedule, affording you time to focus on building your business. You will quickly notice that they save you money. The benefit of hiring a virtual bookkeeper is that they can either work on a monthly retainer or charge you for hours worked and not a fixed salary that encompasses holiday, sick pay, maternity leave etc.
   
2. It is likely that your virtual bookkeeper has accountancy and bookkeeping qualifications and has many years of work experience. They’ll probably have an armoury of tips and tricks and possess some unique know-how for innovative accounting and financial management. She will have received up-to-date training and be aware of all of the rules, regulations, and laws surrounding honest financing.
   
3. Your virtual bookkeeper will save you time. Financial management and accounting are time-consuming tasks, particularly if you are not familiar with the processes and don’t practice the daily skills. As a business owner and entrepreneur, you’ll be juggling many tasks daily. You can view accounting as a well-oiled cog in the mechanics of your company. You are the front person and need to be attending client meetings, pitching for business, marketing and other essential tasks. By handing over your financial management to a virtual assistant, you’ll have a better work-life balance.
   
4. Finances can only be managed successfully with organised and systematic processes and be up-to-date and ready for audit at any time. Your virtual bookkeeper will manage your financial data, track daily cash flow and pull reports whenever you need them. By understanding and analysing your finances, you can better understand your business, which will help you make accurate business decisions.
   
5. Lastly, by finding a dependable virtual bookkeeper, you’ll begin to trust the accounting services and make the right decisions, often with your VA in mind. You’ll need to find a professional, savvy bookkeeper who is responsible and quickly becomes your right-hand-person. They’ll be on hand to advise you about taxes and other essential transactions; they will track bills, bank statements, invoices and credit cards. In other words, they’ll keep you on the straight and narrow.