For additional features, these were elements that fell into the “nice-to-have” category that not all software providers offered, either as part of their regular plan or as a paid add-on. Both kinds of features combined to account for 60% of our total score. The benefit of using a virtual bookkeeper as a business owner is that it is often cheaper than hiring someone local to work on-site.

This can be on a local server, but better yet, cloud-based software that can be updated in real time. Virtual bookkeeping refers to providing remote bookkeeping services to clients using cloud-based software, allowing flexibility and cost-effectiveness. The best online bookkeeping service should offer a wide range of bookkeeping solutions, including catch-up bookkeeping, invoicing, bill pay, bank reconciliation, payroll, and tax filing. Xendoo offers three subscription plans, which are based on the monthly expenses of your business and the number of bank and credit card accounts that are connected.

How Does Virtual Bookkeeping Work?

Hiring an in-house bookkeeper means you have a dedicated expert in your office, available when you need them. Whether your bookkeeper fills a full- or part-time position, just having an expert on hand can do wonders for your finances. In the end, your virtual bookkeeper should be a partner that can help grow your business affordably.

• Fast-growing businesses may also turn to you, as their bookkeeper, to manage payroll and payroll taxes too.
• Whether your bookkeeper fills a full- or part-time position, just having an expert on hand can do wonders for your finances.
• This usually means sending over soft copies like snapshots of physical receipts or PDFs of bills and invoices.
• Although the term usually refers to external companies or freelancers hired for your bookkeeping needs, virtual bookkeeper jobs can also include internal bookkeepers who work remotely.

A virtual bookkeeper is probably more likely well-versed in a number of accounting and bookkeeping software solutions, including cloud-based tools. A virtual bookkeeper typically works remotely and provides online bookkeeping services. He may be in a different city or country and communicate with clients via email, phone, or video conferencing.

Make sure you use the same accounting software

The price is the same regardless of your business size or the number of employees. Your first month of service with QuickBooks Live is dedicated to onboarding and cleaning up your books at a cost of $500. Overall, the consensus of Bench users is that the service is easy to use and that the user interface is very intuitive.

Types of Virtual Bookkeepers

It also syncs with either QuickBooks Online or Netsuite (as opposed to syncing just with QuickBooks, like most virtual bookkeepers). Bookkeepers would enter a company’s financial transactions after they had already happened. Today, virtual bookkeepers can easily add bill pay services to their offerings thanks to digital, cloud-based solutions. “Virtual bookkeeping” refers to online bookkeeping services that perform these tasks remotely. Although the term usually refers to external companies or freelancers hired for your bookkeeping needs, virtual bookkeeper jobs can also include internal bookkeepers who work remotely. Its bookkeeping service comes with its Enterprise plan, which costs $399 per month when billed annually.

What does a virtual bookkeeper do?

Also, while any CPA can be a bookkeeper, there are far more bookkeepers than there are CPAs. In fact, many bookkeepers are trained in bookkeeping right after high school. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach.

The best online bookkeeping services are affordable and easy to use, offer a wide range of bookkeeping solutions, and provide easy access to dedicated bookkeepers. Many of the top virtual bookkeeping services also have add-on services, such as catch-up bookkeeping, payroll, and tax filing, which can streamline your work. Virtual bookkeeping allows a bookkeeper to work from home or their own office instead of physically working at a client’s office.

All too often, these are delivered in bulk, leaving the bookkeeper to sort them out. Each receipt represents money that has already been spent, and the bookkeeper is tasked with bringing the books up to date, categorizing each expense and attributing it to the right department. “Bookkeeping” is a broad term that’s often used loosely to include a wide range of services, from entering receipts to performing financial audits, but becoming a “bookkeeper” requires very little training. FinancePal is best for small businesses that need bookkeeping assistance, including catch-up bookkeeping, entity formation and tax filing. We know that a business’ least favorite aspect of running an operation is balancing the books. Traditional bookkeeping and 2020 federal income tax filing requirements are similar in that they function almost exactly as the other would, whether in-house or online.

The best online bookkeeping services depend on the exact needs of your business. If you have fallen behind on your books and you want to get caught up, Bench might be the best option for you. If you’re using QuickBooks Online, QuickBooks Live can match you with a ProAdvisor to help you manage your books. If you need other services aside from bookkeeping, such as financial planning, tax advice, and payroll, you should consider Bookkeeper.com. 1-800Accountant is a nationwide virtual accounting firm that will handle all of your accounting needs, from bookkeeping to tax preparation and filing. With its powerful mobile app, it is also useful for businesses working remotely.

QuickBooks Live dedicated bookkeepers are able to not only perform ongoing maintenance of their books but also help with setting them up and correcting past errors—something that its users appreciate. The ability to speak with a live person with a variety of communication preferences, including one-way videoconferencing, is also a plus. And, if you’re not a whiz at those tasks, they often can get put on the back burner, which can cause harm to your business, especially when you consider accounting. After all, doing the work is great, but if you’re not getting paid in a timely fashion … not so great. One of the biggest challenges for bookkeepers lies in handling credit card receipts.