A virtual bookkeeper can be the answer to your business's bookkeeping needs. They work exclusively online and can provide the same level of service as a traditional in-office bookkeeper. Because they work virtually, they can often offer more flexible services, such as working with clients on an ongoing basis to provide ongoing bookkeeping support.
But what exactly do they do? This article explores the little-known responsibilities of virtual bookkeepers and how their services can help your business stay on top of its finances.
Managing Financial Records
A virtual bookkeeper is responsible for managing a business's financial records. This includes recording and tracking transactions, reconciling bank accounts, preparing financial statements and reports, preparing accounts payable documents, and maintaining records of employee expenses.
Tracking transactions isn't always as easy as it sounds. This process usually requires the virtual bookkeeper to be organized and detail-oriented. Many times, they will need to track down missing invoices or follow up with clients to make sure invoices have been paid.
Bank account reconciliation ensures that all transactions are properly recorded to reflect the financial records accurately. A virtual bookkeeper must review bank statements and identify any discrepancies between the amounts reported by the bank and what is recorded in the business's financial records.
Accounts payable documents are necessary to properly manage any money a business owes. This includes tracking supplier invoices, making timely payments, and ensuring all transactions are recorded properly.
Finally, a virtual bookkeeper will also ensure that employee expenses are tracked and reported correctly. This can help businesses avoid any potential issues with the IRS.
Budgeting and Cash Flow Analysis
In addition to these traditional tasks, a virtual bookkeeper can also provide other services such as budgeting and cash flow analysis. They can help you create detailed budgets so you always have an up-to-date view of your finances.
The budget will mostly include expenses, but it can also include revenue and other income-generating activities. Virtual bookkeepers will analyze current spending trends so you can make informed decisions about how to allocate resources across your business more effectively.
Cash flow analysis is another important aspect of budgeting. It shows you where your money is going and how much you have available to cover expenses. A virtual bookkeeper can help you understand your cash flow and make sure you're not overspending or underfunding crucial areas of your business.
Virtual bookkeepers are a valuable asset for any business looking to stay on top of their finances in a cost-effective way. Their expertise in all aspects of financial record keeping ensures that businesses have an accurate understanding of their finances at all times. They give you access to additional services, such as budgeting and cash flow analysis, that will help you maximize your resources more efficiently.
Talk to a virtual bookkeeping service today to see how they can work with your business.