Virtual bookkeeping

Virtual Bookkeeping: 5 Things You Need To Know About Virtual Bookkeeping

Virtual bookkeeping services allow faster customer service, greater accessibility, and consistent financial monitoring for entrepreneurs and small business owners. Whether you’re beginning to grow your business or are looking to update your bookkeeping services, virtual bookkeeping proves a great alternative to traditional methods. Here are 5 important things to know about virtual bookkeeping.

Superior Customer Service

Virtual bookkeeping services make it possible for business owners to have access to their bookkeepers more often, without the hindrance of travel time or office hours. As the bookkeeper processes and records transactions, payrolls and sales, and reviews financial health, the business owner can reach out to communicate or collaborate at any time because scheduling is more flexible. We recommend that our virtual bookkeeping clients communicate often with their bookkeepers because it can help ensure accuracy in budgeting and consistency in growth. Bookkeepers work with many different statements and reports, and consistent communication helps ensure that all of this information is accurate and up-to-date. These reports outline the health of the business, and your virtual bookkeeper will be on hand to walk through these reports and answer any questions that arise.

Easy Adjustments

Virtual bookkeeping employs standardized software and technology to maintain business ledgers and journal entries more effectively. In many cases, software and technology can automate even the smallest of processes, like transaction recording. This helps a bookkeeper adjust minor details in a business’ books, thus resulting in more accurate records than a business would have otherwise. Business owners, themselves, may adjust their bookkeeping as well.

We always recommend that business owners remain aware of their financial health even after recruiting a virtual bookkeeper because it allows them to collaborate when needed. Close collaboration can help business owners understand how we effectively manage bookkeeping, adjust sales and transactions records, and review reports, and it leaves room for any questions or concerns that business owners may have throughout the process.

Secure Storage

Virtual bookkeeping allows for easier management of financial transactions and documents. Businesses require income statements, cash flow statements, balance sheets, budget reports, and more. Businesses must also keep track of sales and other transactions. These records are important to maintain financial health and report to the IRS for an accurate tax return, refund, and business write-offs. Virtual records are more accessible and secure than physical copies.

Up-To-Date Monitoring

Bookkeepers compile reports so business owners can have a better understanding of the company’s financials. For example, a cash flow statement measures incoming cash with debts and expenses and is essential for measuring financial security. Virtual bookkeeping allows a business owner to review reports like the cash flow statement more quickly and frequently, so they remain aware of how well the business operations run and how money enters and exits.

The cash flow statement also works in conjunction with the balance sheet, which summarizes assets, liabilities, shareholder equity, and the income statement, which summarizes financial performance. Both reports utilize equations to provide accurate overviews of revenue and expenses. For example, an income statement calculates that net income equals total revenue plus other income gains, minus total expenses, plus other income losses. Through virtual bookkeeping, a business owner can not only stay up to date on future reports but also review how reports are calculated.

Taxes Made Easy

Bookkeeping doesn’t end with reports; virtual bookkeepers also prepare business owners for the upcoming tax season. Through consistent income recording and various records, owners and bookkeepers gain a complete understanding of the business’ financials, which makes filing tax returns and calculating refunds much simpler. All documents are organized and stored virtually, so filing business taxes becomes quicker, and reports allow for additional deductions. 

Through virtual bookkeeping, businesses can get access to expert opinions, conclusive accounting, ledger recording, and financial reporting. This allows entrepreneurs to focus on their business production and growth, instead of getting weighed down in financial management tasks. Contact us if you have any questions about getting started.

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TCJA: Don’t Lose Out When Corp. Vehicle Is in Your Personal Name

Do you operate your business as an S or a C corporation?

Do you drive a vehicle titled in your personal name for corporate business?

Beware. The Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018-2025.

Before the TCJA, you had to pay attention to the use of your personal vehicle for corporate business in order to avoid losing deductions to the 2 percent miscellaneous itemized deduction rule and the alternative minimum tax.

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