Benefits of Shifting to Virtual Cloud Bookkeeping

What is meant by virtual cloud bookkeeping?

It may be a tiresome chore to keep your financial records up to date, especially when you do it physically. While keeping your private financial information securely safeguarded, cloud accounting software simplifies and automates several tedious chores. In this blog learn more about how virtual cloud bookkeeping functions and why it can be a suitable choice for your company by reading on.

To keep track of and record money coming into and going out of accounts, businesses have traditionally used desktop accounting software. For more flexible access and security, virtual cloud bookkeeping simply moves this procedure from the desktop computer to the cloud.

When using classic desktop bookkeeping software, you must be logged into the computer where it is installed in order to utilize the program.

Users must keep up with program updates as needed since desktop storage may place restrictions on some applications.

Tasks a virtual bookkeeper is responsible for

The duties of an internal accountant or bookkeeper are often carried out by a virtual bookkeeper.

They record a company’s regular financial transactions as well as critical virtual cloud bookkeeping duties like:

• Keeping a record of daily transactions
• paying debts and billing customers
• reconciling credit card and bank statements
• Returning sales tax payments

A virtual bookkeeper is a person who works remotely using the internet and modern technology to complete tasks related to clients’ financial needs, including accounts payable, accounts receivable, payroll processing, bank, credit card, and loan reconciliation, revenue, and expense coding, and accounts payable and payable. Virtual bookkeepers may provide monthly and annual financial reports and communicate with your accountant as necessary, just like their in-office equivalents.

How Can Virtual Cloud Bookkeeping Services Help Your Business?

Customers that are having trouble managing their bookkeeping services while operating their business frequently contact Velan with questions. Although bookkeeping is a fundamental aspect of accounting, keeping accounting records up to date requires a tremendous amount of accuracy and efficiency. One bookkeeper must be crafty and sophisticated enough to meticulously record every entry since one mistake might result in ten further mistakes.

As a result, most firms lack the time and skills needed to provide bookkeeping services. Because of this, using virtual cloud bookkeeping services is the ideal option for companies that wish to maintain accurate financial records without spending too much time or money.
Features of virtual cloud bookkeeping software

Although the phrases bookkeeping and accounting are sometimes used interchangeably, there are some minor distinctions. Cloud accounting considers a company’s overall financial situation, whereas bookkeeping is more concerned with accurately documenting each day’s transactions. In light of this, the following are some duties that online bookkeeping software may help with:

• Keeping track of every single transaction
• The balance sheet being prepared
• The cash flow statement’s preparation
• The income statement preparation
• Debit and credit posting
• The making of invoices
• Upkeep payroll records
• Keeping the general ledger up to date

Virtual cloud bookkeeping software will, at the very least, provide options to automate and simplify these activities.

The burning question is when a business should go to virtual cloud bookkeeping:

Do those things have a proper timing or set of requirements? Even if it’s hardly rocket science, accounting is nevertheless challenging. Keep in mind the adage “credit what comes in, debit what goes out.” Although it seems easy, practising it is challenging. Even the smallest mistakes may be expensive.

The decision to use virtual bookkeeping services is entirely up to the business’s decision-makers. The decision to use virtual bookkeeping services may be made at any time. Recognizing the signs that a shift is about to occur and comprehending its benefits are the keys to success. To determine whether your company would benefit from virtual accounting services, it is wise to look into them.

One of the most popular methods for comprehending a problem and creating a business strategy is the 5W (Who, What, Where, When, Why) approach. The same approach will be used, with a stronger focus on why and when to learn more about the virtual bookkeeping services. Cloud-based bookkeeping can:

• Automate routine transactions and financial records to save money.
• Free your company from losing time on manual, time-consuming tasks.
• Allow you to distribute your books to the appropriate team members.
• Give your staff access to the program from any location with an internet connection.
• Utilize current information to create consistent bills and reports.
• Utilize methods like end-to-end encryption to keep information secure.

• Financial reporting that is accurate

Cloud-based accounting software and online bookkeeping services complement one another. That implies that you and your virtual bookkeeper may combine labor-saving tools using a program like QuickBooks Online or Xero. By minimizing the amount of time virtual bookkeepers must spend on manual data input, accounting technology like these increase accuracy by lowering human error-related errors.
As an added bonus:

• Real-time access to your books via a web browser or mobile app will provide you with more visibility into your cash flow and company performance.
• Gaining more understanding from your online bookkeeper’s monthly financial documents, which include a balance sheet, income statement, and cash flow statement.

• Make your business known

Everything that needs to be done, from creating accounting records to completing tax filings, lies on the shoulders of the one accountant working for a small organization. Now, how can your accountant stay up to date on the most recent accounting trends or minimize hazards if they are buried behind the many accounting books? It is unreasonable to expect one individual to handle all of the bookkeeping and accounting duties.

Thus, by giving your in-house account’s accounting duties to a virtual organization, you may free up part of his time so that he can concentrate on other financial facets of the company. Your accountants can successfully advertise your company when they have the time to consider numerous investment choices and do market analysis.

• Data protection

You may have reservations about keeping sensitive data on the cloud. However, virtual cloud bookkeeping services improve security for most firms in a variety of ways. To begin, cloud providers employ numerous layers of security, such as enhanced encryption and access control, to guarantee that only authorized users have access to your data.

They also automatically back up your data so you don’t lose important financial documents. Your data is safe since it is saved online, even if an employee loses a laptop or an office is damaged by fire or water. Your IT staff may then concentrate on protecting endpoints and ensuring employees have appropriate access privileges for their responsibilities.

• Increased adaptability and financial savings

With the option of working with accountants outside of your immediate region, virtual bookkeeping makes it simpler to locate the best fit for your requirements and your budget. For example, hiring a bookkeeper full-time or internally may not be the most cost-effective solution in terms of:

• Pay (hourly rates vary by region and level of experience)
• Costs of payroll deduction
• Overhead costs for IT equipment and advantages

However, since maintaining your books is a required investment, working with a virtual bookkeeping business like Velan can be the best option for getting current records at a reasonable cost.
You only pay Velan for the bookkeeping services your company really needs. Velan’s workforce can scale up when your transactions or accounting complexity increases.

• Monetary gains

The language of money is understood by all businesses. Every company wants to boost its earnings.

Therefore, it seems sensible that companies would search for methods to save expenses. When compared to a virtual bookkeeper, hiring an in-house bookkeeper is more expensive. This is mostly due to the bonuses and other benefits that internal bookkeepers receive in addition to their pay. The expense to the business is increased by this.

Remote virtual cloud bookkeeping is not subject to these additional expenses. Only the services provided are covered by the payment.

• Help businesses thrive

In business, hunger for expansion and nourishment are directly related. In business, scalability is influenced by a number of variables. The corporate environment is dynamic, and one of those dynamics is flexibility. If the decision-makers are capable of making wise financial choices, this becomes simpler.

Effective virtual cloud bookkeeping is essential because it serves as the foundation for accurate accounting. When money is limited, productivity suffers as the workload grows and there are fewer resources available. Cost-effective virtual bookkeeping is the ideal remedy in these circumstances.

• Greater time to develop your business

Do you wish you had more time to devote to what is important?

Because you probably didn’t start your business to become a bookkeeper, outsourcing virtual bookkeeping services allows you to trade time spent working on your books and fretting about tax season for better peace of mind and more time to expand your business.

Working with a virtual bookkeeper also means spending less time on personnel training and management. Velan eases the move to virtual cloud bookkeeping by learning everything we can about your company throughout the onboarding process.

• Experienced Technical Assistance

Accounting is one of the most technologically advanced and inventive sectors. The accounting business has embraced all of the latest technology, from artificial intelligence to blockchain. The level of bookkeeping services may be greatly improved with the use of the most recent bookkeeping software.

Small firms, on the other hand, cannot afford to invest in or upgrade their bookkeeping software on a regular basis. On the contrary, virtual bookkeeping firms have the resources to invest in bookkeeping software and give intensive training to their employees. As a result, when you engage a virtual bookkeeper, you will receive the most recent technical assistance without having to pay more.

• Subject matter experts

Businesses frequently save money by delegating additional accounting responsibilities to entry-level accountants. This is a huge error since outsourcing bookkeeping is not as straightforward as it may appear at first.

• Create a solid foundation for future success.

Sound fiscal practices are critical to the growth of any organization, and cloud accounting services give the greatest platform for doing so. Virtual cloud bookkeeping services can offer certain benefits, such as greater free time and access to subject matter experts. As a result, you should approach cloud-based accounting with caution.

• Paper-free/eco-friendly:

• Traditional accounting sometimes includes a lot of paperwork. Physically storing archived paper data or manually distributing paper reports to investors, lenders, and other stakeholders is both wasteful and useless in today’s computerized environment.
• In order for invoices to be loaded immediately into the cloud accounting system, request that vendors deliver them electronically. Paper bills and receipts may be scanned and processed to help organize the workplace.
• Emailing invoices to clients saves money on printing and postage while also expediting payment processing.

• Cutting back on paper also has a positive influence on the environment:

Every year, the average company creates 350 pounds of waste paper per person, and 375 million printer cartridges are burnt or disposed of in landfills — and cutting energy consumption by reducing server and hardware utilization has an even higher impact.

Unprejudiced and Clean from Fraud Bookkeeping Services

You can’t rule out the possibility of personal bias participation when a bookkeeper has a direct stake in your accounting records. If your bookkeeper alters the monthly expense report for the amount spent by him for his personal use and puts an entry in the books, you would never be able to identify such fraud.

If you don’t want to lose money because of a dishonest bookkeeper, engage virtual accounting services since distant bookkeepers have no direct stake in your company’s internal matters. Second, virtual bookkeeping firms cross-check their clients’ books many times before providing them to them. There is no possibility of fraud with virtual cloud bookkeeping!

Let us establish a solid business foundation.

If you want to build your business, you must have a solid financial foundation, and virtual bookkeeping is unquestionably the method to accomplish it. Virtual bookkeeping services may provide several benefits, ranging from time flexibility to professional services. So, without further ado, choose virtual bookkeeping for your better future.

Depending on your objectives and priorities, the moment to outsource your back-office activities to a skilled team of virtual professionals might be right now. Contact us to learn how Velan combines the finest people, procedures, and technology to get and keep your books up to date.