How Does Virtual Accounting Work

February 4, 2020

Virtual AccountingVirtual accounting is a process for giving accounting professionals the unique opportunity for providing accounting services for their clients remotely. The practice is becoming more and more mainstream along with the increasing number of businesses searching for creative methods of finding the perfect balance between their company’s workloads and their staff. Often their lack of staffing prompts business owners and operators to seek out alternative accounting methods.

The fact is that technology is changing how we see the world and conduct business. We’ve observed how smartphones and the Internet have changed our communication methods, such as texting and group meetings. You don’t have to settle for the accountant in your phone book, and you can go beyond the gold-star recommendations from a chamber of commerce. 

More people use the Internet to find efficient services, like accounting. You can also become one of them when you work with DeepSky. We want to help your business reach the next level, with our virtual services. 

A Simple Concept For Small Businesses Accounting

Virtual accounting is a fairly simple concept but first, you must let go of the idea that your accountant must be working in the exact same space as you are, such as your office. Once you’ve gotten over that location issue, a new world of accounting resources will be open to you. All of the usual accountant/client rules still apply, including the fact that proper communication is paramount in this relationship. Whether you communicate verbally or in writing, good communication is key.

In addition, you can set the length by which this relationship will last. Many in-house accountants have to be hired part-time or fulltime for a certain number of hours, which can increase the number of unnecessary costs and services. If you want to use a contractor, that often involves going through a recruiter and having to pay extra fees in exchange for finding the right candidate. 

When you do virtual accounting, you can decide if the arrangement is temporary or permanent. The talent and expertise are available on your terms. In addition, you can decide on the specific services that you want, from bookkeeping to a virtual CFO. That gives you flexibility on what types of virtual accounting will boost your business.  

How Does It Work?

There are a few basic steps to virtual accounting that are quite easy to follow:

  1. You send your documents to us either via fax or by scanning them and uploading them to our secure server.
  2. We, in turn, retrieve those documents.
  3. Then, we complete our data entry and analysis.
  4. We follow up by creating your financial statements.

Specially Designed Services

Our virtual accounting services have been specially designed for the purpose of doing your basic accounting and bookkeeping functions. Our primary goal is providing significant cost savings for you while also creating better efficiency for your business. If you’re interested in this accounting option, the following list can give you an idea of what we can do for you as your virtual accounting provider:

1.  Invoicing Your Customers

Does this seem like a simple task? It can when you have one or two customers; when you have dozens, keeping track of the money owed for your products and services is important. A good virtual accountant will keep track of how much you’ve earned per month and ensure that it is entered into your general cashflow. 

This service can include sending out both invoices and monthly statements. We can also include making collection calls if you choose, in the case of delinquent customers.

2. Paying Your Bills

Keeping track of your fixed and variable costs is expensive. The time you spend focusing on the bills and be spent creating products and services, and you don’t want to get frantic from missing a bill. 

Virtual accountants can do the tracking. Either weekly or monthly, we’ll enter the bills, organizing them by the due date, and sending a report to you that shows what’s currently due for payment. You can see if an amount is inconsistent or if you don’t recognize a purchase. Once you approve them, they’ll get paid.

3. Banking & Credit Card Reconciliations

This ties into tracking your expenses and bills. Some payments are automatic, while others may not be regular. You want to check every business expense to see if extra costs have may slip onto your monthly bank statements. While not every card gets hacked, it’s best to keep that possibility in mind as well. 

Your virtual accounting team enters transactions and other data derived from your credit card and bank accounts into accounting software. The data is then reconciled to your monthly statements, giving you an accurate view of the current status of your cash and credit health. That allows you to make decisions on purchasing assets — if you have the funds or means to 

4. Creating Weekly and Monthly Reports

One of the paramount reasons that business owners hire virtual accounting teams is their dissatisfaction with the level of reporting that’s currently in place. Your DeepSky virtual accounting team will provide on-time weekly or monthly reports that help you to see the big picture at all times.

The reports should also be explained in how they apply to business strategies. Many CFOs make the mistake with not talking about how the numbers translate into tangible results towards management. A good virtual account or CFO should provide concrete strategies based on the data that they see.

Get Your Free Virtual Accounting Quote

Simplify your accounting processes and finding the freedom to grow your business with DeepSky. We make virtual accounting easy and cost-effective, with programs such as the Financial WingmanTM and other services with experts. When you’re worried about in-house potentially costing too much for your business, virtual accounting could be the perfect solution.  

Contact us for your free DeepSky virtual accounting quote. Our team of experts will be very happy to get you started in optimizing your finances and reaching the next level. 

 

Follow & Like Deepsky 👇🏻