The business landscape has changed significantly in recent years, with small businesses and start-ups coming up rapidly. Also, a lot has changed regarding how companies manage their financial information; for instance, bookkeeping has reached the next level with AI-enabled software offering an integrated, automated accounting system. Moreover, due to the consequences of the COVID-19 outbreak last year, remote working has boosted the already existing trend of virtual accounting.
To get more insights into this topic, let’s read some experts’ responses to – why virtual accounting services are a growing trend.
Experts’ Opinions about Rapidly Trending Virtual Bookkeeping Services
1. Rising Number of Businesses, freelancers – and Software Utilization
Virtual accounting services are growing in popularity for a couple of reasons. The first concerns are the rise of sole proprietorships and the large increase in freelancers and independent contractors. There are tens of millions of self-employed freelance people around the world, with the numbers expected to rise significantly in the coming years. These people rely on virtual bookkeeping services like QuickBooks as affordable accounting services.
The second reason is the growing sophistication of this software and the changing nature of manual accounting, with accountants increasingly seeing much of the manual bookkeeping work taken over by automation like virtual bookkeeping services. Day-to-day accounting work like this is now easily handled by B2B subscription services, while more complicated data analysis and synthesis tasks are being performed by actual human beings.
By Bryce Welker, Owner of CPA Exam Guy
2. Affordability and Accessibility Attracts
Virtual bookkeeping certainly isn’t a new trend. More programs have been developed that make it easier to manage bookkeeping remotely; more virtual bookkeepers have begun offering their services. They are cheaper than paying someone in-house, usually, as you can pay them when you need them. If you get the right one, they’re prompt and professional, delivering only the things you need so you can focus on your work.
And because of the aforementioned programs–many of which have cloud storage–it’s easy to get them what they need to do their job and generate a report for you that you can then give to your accountant or tax professional.
By Christen, CEO of Gadget Review
3. Technology is transforming the accounting profession
Many business owners have called me from thousands of miles away and said something to the tune of “I didn’t hire you the first time because I wanted to be able to drive a few minutes to my accountant’s office…I realize I made a mistake.”
The next few minutes of the conversation mixes how they never saw the accountant in person after the first meeting and how easy it is to meet with someone better qualified over Zoom.
Technology is transforming the accounting profession to take place over the cloud. An integrated, automated accounting system that can connect to your other business platforms is replacing the work of a manual entry bookkeeper. You can hire a tech-savvy accountant to set up your accounting platforms, make them talk to each other, and maintain them for a cheaper rate than an in-house bookkeeper. Why? Because once the setup is done, the data requires a fraction of the time each month to record, so the accountant is charging just a small maintenance fee. A bookkeeper would have to continue to pay heavy hours to manually enter the data. Technology has made all of this possible at an affordable price.
So, business owners can ask themselves, “Do I need to drive down to my bookkeeper’s office for a meeting? Or can I schedule a month-end review call and save the travel time?”
By Chase Vowell, Owner, and Chief Accountant at Flux Accounting
4. Solution to Two Key Problems
Virtual Bookkeeping Services solve the two main issues that business owners/CEOs face – Lack of time and money.
Costs are lower due to outsourcing the various aspects of bookkeeping versus having a team onboard full time, which would lead to employee benefits and related taxes now incurred by the company.
These are also cost-effective due to the time saved from using virtual applications and software versus using manual processes and systems.
Virtual bookkeeping provides more flexibility for the CEOs and Bookkeepers with options for meeting formats and time and more options for worktime and workflows.
By Kirsha, The Boutique Accounting
5. This Trend has Accelerated amid The Pandemic
Virtual bookkeeping services are a growing trend for a number of reasons. However, there is one reason that this trend has accelerated as of late much quicker than it otherwise would have. The worldwide pandemic has forced everyone to be more open and accept doing business virtually compared to the past. Statistics did demonstrate and still does demonstrate that we will be moving more jobs to be worked remotely or virtually; there has now just been a forced appetite for it by those that may have been resistant before.
Virtual bookkeeping is one that many may view as an “easy” function to perform and service clients with. However, as a CPA and one that has been practicing as a bookkeeper using cloud-based software, so in essence, virtually it still does require a high level of trust between the client and the bookkeeper. This is not a service that one should consider hiring without truly vetting and getting to know their bookkeeper. A business owner and a bookkeeper must maintain a trusted partner relationship as there is nothing more important than having your books to know your financial state of affairs as you pursue your passion for what you are in business for, to begin with. As a CPA with years of experience, I urge anyone considering hiring a virtual bookkeeper to verify experience and credentials as to who will be assigned to your account and how you can reach them on an as-needed basis with a quick turnaround to meet your needs as they arise.
By Jaclyn Strauss, CPA & Founder of My Macro Memoir
6. It’s no Less than a Savior
Virtual bookkeeping is a growing trend because traditionally, bookkeeping has been handled in a fairly disorganized manner by small businesses. It’s often done by the business owner or someone ‘who knows a bit about it,’ causing mistakes and costing too much time and money.
Utilizing a credible service provider ensures the work is done correctly, efficiently, and cost-effectively. Mistakes made by people who don’t really understand bookkeeping can be very costly to businesses in overpaid taxes and missed growth funding opportunities due to poor financial information. It’s a myth that business owners should do the books themselves!
By Paula, Pixelstorm
7. Switched My Clients to Digital Accounting, More Than Ever!
Virtual Bookkeeping services seem to be on the rise based on my experience. I believe it is due to less work with paper. Plenty of businesses are now offering emailed receipts or emailed invoices and doing their best to convert to a paperless environment which saves on costs. Digital invoices also help businesses get paid quicker since sending an invoice is instant! I have switched more clients in the last year to digital accounting software than I have ever seen.
The use of digital software and instant transfer of information opens business owners to a new pool of bookkeeping candidates rather than having to find one close to home to drop receipts to. I also have found that more Millennials are becoming business owners or company decision-makers and enjoy using emails and phone calls rather than in-person meetings. Time is money, and the savings are great when you can take advantage of online software and virtual tools to improve your efficiency.
I enjoy working virtually. I train my clients on accounting software so we can work together and find a work balance. The fact that everything is possible digitally helps me to complete bookkeeping tasks quicker than ever, and I pass on the cost savings to my clients.
By Jennifer, Cogneesol
In a fast-moving post-pandemic world, business owners need to focus more on their core business and bring more clients rather than struggle to manage accounting tasks. The above-mentioned experts’ opinions indicate that virtual accounting services are trending because of this model’s benefits – reducing office, travel, and bookkeeping expenses, saving employers’ time and money. Moreover, these savings can better be invested in enhancing operations and process management, leading to overall business growth.