According to a study conducted by psychologists from Johns Hopkins University, your proficiency in math (or anything related to math, that is) may be linked to your inborn “number sense.” Number sense is also the “approximate number system,” which all humans (and animals, apparently) possess inherently. Simply put, you are either born good or bad at math.
If you were fortunate enough to be born with a unique number sense, you could use it to your advantage to start your own business. And no, we are not talking about a retail business or anything similar. We are talking about a virtual bookkeeping business. However, before we get into that, let us first take an up-close look at virtual bookkeeping.
What Is Virtual Bookkeeping?
Today’s business operations are getting more straightforward due to various procedures that remove office meticulousness like paperwork, recruitment, training, and even profoundly entrenched bureaucratic practices. One of the modern methods includes outsourcing the services of an individual or another company to perform financial monitoring and management from any remote location. Understanding virtual bookkeeping and how it works can easily convince a business firm to switch to it from the traditional bookkeeping method.
What is virtual bookkeeping, and how efficient is it? Virtual bookkeeping is the new-age system of keeping the business’ financial records and books accurate and updated. Virtual bookkeepers provide the crucial work of managing the financial needs of a business company, including the balancing of account books, preparation of financial status, and the payment of bills and taxes. Working virtually means not having to be physically present in the business office. Still, all the organized reports and records can be readily viewed, edited, and commented on by both the company owner and the virtual bookkeeper.
An Overview of How Virtual Bookkeeping Works
Virtual bookkeeping works in the same way as hiring an in-house bookkeeper. The only difference is the absence of physical coordination between the company owner or any duly authorized office personnel and the virtual bookkeeper. All communications and collaborative works are coursed through the different functions of the Internet such as email, Gmail, Skype, etc.
The virtual bookkeeper picks and delivers scanned documents sent using the fastest transmission means such as fax, via courier, or email. Once the papers reached the bookkeeper, he immediately performs the standard procedures in processing them, including reviewing all past transactions, balancing accounts receivables and payables, preparing payroll and summary of collections, and invoicing. A financial statement completes the work, which the virtual bookkeeper submits to the business company in the same manner in which he received the documents.
The Main Advantage of Utilizing Virtual Bookkeeping Services
Company owners get the assurance that they are contracting out the services of professional and experienced bookkeepers. Usually, a company picks a virtual bookkeeper from a resume database on the Internet. Company owners can choose the most qualified candidate responsive to the specific requirements of the business. In most cases, a virtual bookkeeper uses his computer and bookkeeping software to process the financial documents; thus, the company can generate savings because there is no need to purchase additional computer hardware and software.
Moreover, the company does not have to spend an in-house bookkeeper or accountant training to learn the latest accounting program. Virtual bookkeepers can introduce the computer software applications they use into the company’s computer system to enable management to view the records for information, reporting, and paying appropriate taxes readily.
Because virtual bookkeepers work outside the business office, there is no need to provide office space and supplies. The company will only pay for the exact amount of work completed. Unlike when they hire an on-site bookkeeper, the company is obliged to pay the full salary even when no bookkeeping tasks are performed during idle hours. Apart from these, the company does not have to provide employee benefits such as sick or vacation leave, hospitalization, or bonuses for virtual bookkeepers since they are not considered regular employees.
Companies can enjoy all these benefits as long as there is sufficient knowledge of virtual bookkeeping services provided to a business company that prefers to use them. Like in all things, it has its strengths and weaknesses that company owners need to weigh before deciding to go the virtual way before displacing the traditional bookkeeping system.
How to Get Started with Your Virtual Bookkeeping Business
As mentioned earlier, if you are numbers-savvy, you can hone your skills by taking free online bookkeeping courses. Believe it or not, there are many choices out there, and all you have to do is choose wisely. Some lessons last a few weeks, some a few months, while some could last a year. At the end of each course, you will get a certificate of completion.
However, once you have your certificate, do not make the mistake of ordering a fake diploma from a diploma mill. Buying a fake diploma is the last thing you want to do, especially if you plan to market yourself as a credible virtual bookkeeper.
A diploma mill is an illegal business that mass-produces fake high school diplomas and fake college diplomas. Such charges customers exorbitant fees only for the latter to discover that the diplomas they paid for are phony and they cannot use them as valid credentials when applying for jobs.
If you genuinely want to start your own virtual bookkeeping business, steer clear of a fake diploma. Instead, after completing your bookkeeping course and receiving your certificate of completion, order an authentic bookkeeping degree from a legitimate online degree provider like verifiabledegree.com.
Such a provider works in partnership with distinguished universities worldwide. Hence, the bookkeeping degree you will receive will come from a renowned university of your choice. If your potential clients ask for proof of your proficiency as a virtual bookkeeper, you can proudly show them your degree, and no one will be the wiser.
Once you have your degree and are ready to accept clients, it is time to introduce your business. You will want to go small first since you are still establishing your reputation. So, you will do well to introduce the concept to small businesses first.
Introducing Virtual Bookkeeping Concepts to Small Businesses
Operating a small business is demanding for its owner, who assumes many roles like CEO, human resources, marketing, and even bookkeeping. However, the desire to bring in more profits and provide good service to customers is given more attention over bookkeeping tasks that usually fall at the bottom of the priority list. Thankfully, the introduction of virtual bookkeeping concepts makes it possible to deal with this kind of business difficulty and provides the owner with the much-needed respite from work overload.
Fundamental virtual bookkeeping theories are a perfect way out for those who are operating a small business. Thinking of ways to deal with the company’s finances can be convoluted, especially if an individual lacks even the most rudimentary understanding of universal financial facets like accounts payables and receivables, payroll, or taxes.
Enrolling in online bookkeeping courses or poring over books can rob a business owner of time that should otherwise be devoted to crucial aspects of his business. At the same time, hiring an on-site bookkeeper would mean increased overhead expenses that could impact the company’s finances. On the other hand, hiring a virtual bookkeeper can help the company avoid all these.
Managing the Finances
It is a fact that business owners face challenges in connection with the financing and accounting aspects of the business. If the owner does not have the proper training, experience, or know-how in monitoring cash flow, then the company’s financial side will undoubtedly be confusing for him. Regardless of whether the business is home-based or is much larger with a pool of employed professionals, keeping the finances in check is ideal for operating the business properly.
Employing virtual bookkeeping theories can help a business monitor its cash expenditures properly. Part of a virtual bookkeeper’s job is to review, record, and reconcile bank accounts, invoices, accounts payables, and receipts meticulously. He also calls customers to follow up on payments, and once payments are received, he updates the records accounts to revise the financial report. The financial report or statement is critical in providing the owner a better understanding of how the business’ finances are being used and saved. Such likewise itemizes cash outflow, thereby advising the owner of the company is generating or losing revenue.
Besides the financial statement, the virtual bookkeeper also Apart from these reports, the virtual bookkeeper sets up a ledger in which he inputs sale graphs and cycles to show the high and low points of a business’ sales. The ledger is vital since it explicitly indicates aspects of the business needing additional funds and areas needing product or service improvement. Aside from preparing monthly payroll, employee benefits, and year-end tax reports, the virtual bookkeeper likewise prepares and sends the financial statement to the business’ accountant.
Anyone can apply virtual bookkeeping concepts using modern equipment like computer hardware and software. You can process bookkeeping documents without being physically present in the business office because you can electronically transmit receipts, invoices, and other financial documents. The process dramatically reduces paper consumption since the documents are scanned or photographed using digital cameras or smartphones and then sent to the virtual bookkeeper by email. Coordination and collaborative works are done through Skype, Zoom, and other online communication methods. A virtual bookkeeper only needs a computer with appropriate business or bookkeeping software and a good Internet signal to perform his tasks.
As virtual bookkeeping concepts are being introduced in the business scenario, small or struggling companies realize the advantages of using the method. While the option can deliver the same amount of service rendered by an on-site bookkeeper, the company enjoys working with a virtual bookkeeper who only charges for the exact amount of work completed from any remote location.
So, if you want your own business minus expensive overheads, start your own virtual bookkeeping business.