Benefits of Virtual Bookkeeping
As a small business owner for the past 14 years, I was drawn to the many benefits of virtual bookkeeping. Overall it's just so much more efficient for everyone involved but here is a more detailed list of the benefits:
1. Reduced bookkeeping time and errors: Using a virtual or paperless bookkeeping system saves a considerable amount of data entry time and reduces the number of mistakes that come from incorrectly keying in the data.
2. More up-to-date books: It leads to the client's books being more up-to-date on a consistent basis because the bookkeeper always has access to the statements and receipts they need. They don't have to rely on a busy business owner to find and send them those receipts.
3. Timely and accurate profit and loss statements: Virtual bookkeeping allows the business owner to keep a better handle on their expenses and profitability and to make changes throughout the year to affect them. With most virtual bookkeeping systems, the client has access to the books via the web or a mobile app which provides much greater transparency and insight into the business versus traditional bookkeeping. With traditional bookkeeping, some clients might not see a profit and loss statement until their year-end. With virtual bookkeeping, it is quite easy to provide monthly profit and loss statements at minimal extra cost.
4. Archiving and compliance: It also provides a very convenient archive of all your paper receipts so that if you ever need to look up a receipt, you can find it in seconds rather than pulling out boxes from several years ago and trying to wade through piles of paper.
5. More options & reduced costs: Virtual bookkeeping also allows you to work with bookkeepers who are outside of your immediate vicinity. This means that you can find some very talented bookkeepers at a reasonable cost because they work from home far away from big cities.
If you have concerns about virtual bookkeeping, then have a look at our article where we address Common Concerns With Virtual Bookkeeping.
Jonathan Burns is an entrepreneur and the founder of Back Office Stars and Strategy Cube, a digital consultancy. Jonathan knows firsthand about outgrowing “do it yourself” bookkeeping and wishing there was a service that would take care of his bookkeeping and administration for him.