A Complete Guide to Virtual Accounting & Bookkeeping

Have you observed the impact of virtual technologies such as virtual machines and virtual services nowadays? Well, fast internet networks braced by even faster microprocessors have enabled computers to accomplish operational activities anywhere virtually, without being on at that specific place. Things that we have seen only in sci-fi movies are now the part of our daily routine because of virtual computing.

Accounting is intense in this business sphere and to achieve better efficiency, accounting processes are heavily dependent on technology to increase the productivity. As virtual technology has become the spotlight, virtual accounting services are not going to withhold.

But do you know, what is virtual accounting and what are the benefits of a hiring virtual accounting service provider? Here is your answer!

What is virtual accounting?

Outsourcing bookkeeping and accounting has become a popular trend among business, from past few years. Undoubtedly, it helped businesses to focus on their core business operations while efficiently maintaining their financial records. It saved the cost of businesses, but outsourcing to companies that used traditional ways to process the accounting tasks proved to be insecure and hampered the productivity of businesses in many aspects.

As the emergence of cloud-based accounting offered a consistent solution to implement the accounting operations with massive control and accuracy, it also allowed authentic collaboration to work with the cloud. This has made possible that client and accountant can work on one file seamlessly being in a different time zone. Virtual accounting will make you feel the presence of accountant like he is next to you.

Benefits of hiring virtual accounting and bookkeeping services:

1. Save Costs - You can easily save your costs of hiring, training and paying an in-house bookkeeper by choosing virtual accountants. You can experience a vast difference in your work efficiency and a reduction in employee turnover.
2. Eliminates administrative burden - Processing payroll of employees, taxes on payroll, employee benefits such as sick leave, insurance, etc., comes to end by hiring a virtual accountant who works even on holidays. This eliminates administrative burden as you have to pay your virtual assistants on an hourly basis without any employment benefits.
3. No software headaches - With virtual accounting services, you don’t have to worry about accounting software problems, maintaining backups or installing upgrades.
4. Get easy access - As virtual accountants work on different platforms you get easy access to up-to-date financial information any time that helps you to make quick decisions.
5. Save valuable time - Virtual accountants enable entrepreneurs to focus on their core operations by ensuring their transactions are recorded appropriately.

How can you work with a virtual accountant?

Let’s say you have handover all the accounting tasks to a virtual accountant and they are managing your accounting books. What does that mean? How do you actually work with a virtual accountant and ensure that your transactions are processed efficiently on time?

Well, here is the answer!

Check whether your virtual accounting company performs the following tasks efficiently for each day, week, month, quarter and year when you hire their virtual services.

Daily Bookkeeping Tasks:-

• Check how much cash you have on hand
• Be aware of incoming and outgoing payments
• Weekly Bookkeeping Tasks:-
• Record customer billings
• Record customer payments
• File vendor bills and payment records
• Update payroll file
• Make vendor payments
• Prepare and send invoices
• Review forecasted cash flow

Monthly Bookkeeping Tasks:-

• Balance the checkbook
• Review and aged receivables
• Check inventory and analyze its status
• Process and review payroll
• Meet payroll tax requirements
• Review profit and loss compared to budget and prior years
• Review month-end balance sheet

Quarterly Bookkeeping:-

• Evaluate annual profit and loss estimate
• Quarterly payroll payments
• Make quarterly sales tax payments
• Make income tax payments

Annual Bookkeeping:-

• Review aged receivables. Send to collections?
• Year-end inventory status analysis
• Fill out IRS forms
• Review full-year financial reports
• Review all the statements before tax season

This is the list of tasks that need to be performed by your virtual accountants and deliver you the final reports in order to make informed business decisions.

Why choose Cogneesol for virtual accounting and bookkeeping services?

Cogneesol Inc. is a leading outsourcing company that offers reliable, expert virtual accounting, bookkeeping and tax preparation services to different industries, as well as self-employed individual worldwide, since 2008. Our cost-effective prices and customised bookkeeping solutions help us to stand out from the competition. Our in-house accountant and bookkeepers are highly skilled and experienced to handle your day-to-day accounting operations so you can focus on your running business and make profits.

Partner with us and gain the following benefits:

• Best skills set offered at competitive prices
• We help you to expand your business
• Reduce your expenses by consolidating your delivery capabilities
• Follow strict rules of quality benchmarks
• Gain access to the latest technology

If you are looking for virtual accounting and bookkeeping assistance, then look no further than Cogneesol! We are happy to assist you.

I am accounting specialist at Cogneesol - A business outsourcing services provider globally.I have keen interest in finance and accounting and like to share my views on these topics. For more information please visit www.cogneesol.com