How to Find the Best Virtual Bookkeeping Service for Your Business
Confirm that you and your virtual bookkeeper use the same accounting software.
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A bookkeeper keeps your financial records clean and sets them up for success. Hiring one can save you time, but not money. If you’re worried about cost, a virtual bookkeeper may be a good option.
Often, online bookkeeping services charge less than someone working on site. To find the right virtual bookkeeper for your business, consider:
- How much they charge.
- What accounting software you use.
- The bookkeeper’s industry experience.
Here’s how virtual bookkeeping works, followed by what to look for in a virtual bookkeeper.
What is virtual bookkeeping?
Virtual bookkeeping is when a bookkeeper or accountant works with their client remotely. Typically, you do this by inviting your bookkeeper to collaborate within cloud-based accounting software.
Virtual bookkeepers can take some back-office work off business owners’ plates, including:
- Posting transactions.
- Reviewing financial statements.
- Reconciling accounts.
Lots of bookkeepers use QuickBooks Online since it’s the industry standard. However, they may also use other business apps. For instance, you might meet with them via Zoom or share files with Google Docs.
Where can you find a virtual bookkeeper?
You have a couple main options to find a virtual bookkeeper. First, you can search for a bookkeeper who works on their own. If you go this route, you might start by looking on LinkedIn or asking fellow business owners for recommendations.
The second option is going through a company that matches you with a team of bookkeepers. This may be less personalized, but it can be sufficient. Additionally, these companies often have subscription plans that let you know exactly what to expect each month.
For instance, Bookkeeper360 offers four different plans, plus add-ons for tasks like payroll administration and tax planning. The company works with clients who use either QuickBooks Online or Xero.
How do you vet a virtual bookkeeper?
Regardless of which option you choose, look for a virtual bookkeeper who meets the following criteria:
Has the right certifications
Your bookkeeper doesn’t need to be a Certified Public Accountant (CPA), but they should be certified by a reputable institution. Some examples include the National Association of Certified Bookkeepers and the American Institute of Professional Bookkeepers.
Uses the same accounting software as you
This is critical to sharing financial records and collaborating. Most accountants are familiar with QuickBooks Online, and Xero is gaining popularity, too.
Fits within your budget
Bookkeeping services can get expensive, especially if you want weekly reports. Try to opt for a provider with flat-rate pricing — a fixed fee for a well-defined set of deliverables. Hourly pricing isn’t ideal. On top of getting expensive, you’re not guaranteed the same deliverables from month to month.
Specializes in your industry
Businesses’ charts of accounts look different from one industry to the next. Ask your bookkeeper for testimonials from businesses like yours to show they have experience in your field.
Communicates well
Are you going back and forth with a prospective bookkeeper trying to nail down a time to talk, or do they use a scheduling app? Do they respond quickly via email and/or text? Do they have a clear onboarding process? If they’re not communicating in a detailed and reliable way, that’s a bad sign.
Is clear regarding deliverables
It’s important to go into the process knowing which tasks you need completed and how often (e.g., monthly, weekly). Once you figure that out, ask your prospective bookkeeper what you should expect. For example, they should send you reports on a set schedule. There should also be an option to review reports with you.
It’s never a bad idea to check your bookkeepers’ work to make sure you understand everything. All businesses are different, and bookkeepers should categorize transactions in a way that makes sense for you. Plus, checking in helps you keep a finger on the pulse of your business.
Has an online presence
Virtual bookkeepers should be active on social media. For example, they might participate in forums on LinkedIn and Facebook. Start with a simple online search. How are they demonstrating their knowledge and expertise?
» Need more than a bookkeeper? Consider a fractional CFO.
A version of this article was first published on Fundera, a subsidiary of NerdWallet
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