The decision to use a Virtual Bookkeeper can be made due to many reasons. The business owner could be overworked and needs to focus on other areas within their business. Or the business is growing and needs a part time or full time bookkeeper to assist in record keeping to meet legislative requirements.
Using a Virtual Bookkeeper is no different to using an onsite or contracted bookeeper. The only difference is that they work from their own office and not yours.
So how different is using a Virtual Bookkeeper to using an in-house Bookkeeper? Even with an in-house bookkeeper you will still need to find the most efficient way to give them your source documents. Using a Virtual Bookkeeper is no different.
You can send your documents via email, snail mail, courier or by fax. You just need to choose a method that suits your needs and timeframes available.
Once your Virtual Bookkeeper has received your documents, the documents are entered into the Accounting Software of choice and filed according to your requirements. This could be in envelopes for each separate month or a lever arch binder for the whole year. For many of my clients, I file the source documents in a lever arch binder sorted into months. At the end of each month, I send all financial reports via email with the lever arch folder sent or couriered to the client at the end of the financial year, to enable them to present the finalised accounts to their accountant.
You will need to consider how you will communicate your requirements to your Virtual Bookkeeper and if you need your Business Activity Statements (for those Australians reading this newsletter) to be completed and lodged. If so, the Australian Taxation Office has strict legislation regarding the completion and lodgement of the BAS. So check to see if your Virtual Bookkeeper meets the criteria. If you are in another country, check your state and federal taxation legislation for your bookkeeping requirements.
Other issues to consider is the backing up your data file and confidentiality. Most if not all Virtual Bookkeepers should be willing to sign a Confidentiality Agreement. If you are not offered such an agreement, ask for it. You need to be confident that your data file and documents will be kept in the strictest of confidences. You also need to ensure your data and other files are being backed up regularly. Ask for a backup disk with your monthly Financial Statements.
Letting go of the actual data entry for your bookkeeping can be and will be hard. You may never get to meet your Virtual Bookkeeper in real life and building trust is extremely important to building your relationship with your Virtual Bookkeeper. Don’t give signatory authority over your bank accounts to anyone and check your Financial Statements to ensure your expenses have been allocated correctly.
Do all of these things and you will well and truely be on the way to building a relationship that allows you to work on your business and not just in it.
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Great article Kylie, some people just can’t imagine how it can work.
I like the point that you make regarding trust.
Virtual Assistants work in the ‘invisible’ — expressing good character takes effort.
Very good article Kylie…this will really give potential clients a better idea of how easy it is to work with a virtual assistant for their bookkeeping. I’ve referenced it in my latest blog posting at The Blog about Gem’s
Thanks so much for your feedback Deb. Many people still don’t understand how Virtual Assistants are given tasks to do by their clients. Once they do understand you usually see it in their eyes that they are thinking of what they have that could be done virtually.
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