The scope of a bookkeeper, whether it is an in-person or a virtual bookkeeping position, can vary widely based on the client’s needs and budget. For example, what works well for an insurance brokerage company may not be a good fit for an architectural firm.
In today’s workplace, most companies work in automated environments that facilitate or enable working remotely. As such, there is a greater demand for professionals that can work remotely or virtually.
A virtual bookkeeper offers the same services and benefits you would expect from a bookkeeper working on-site. The virtual bookkeeper would obtain access to the company’s systems, applications, and files remotely, perform the same tasks and deliver the same reports as when working on-site. The key to success is maintaining regular communication. Ultimately, there is no difference in the benefits a company will realize from the bookkeeper.
By entering an independent contractor arrangement, employers reduce payroll taxes, insurance premiums, and other costs associated with having a full-time employee on the payroll. Many businesses’ need for a bookkeeper can be cyclical, so this arrangement can allow the business to ramp up the bookkeeper’s workload during busy times and ease off during slower times. Further, it is common these days for staff to turn over frequently, often within 1-3 years, which is disruptive to an organization. Engaging an outside firm like CFO Strategies to handle your bookkeeping protects your company against staff turnover and the disruption and cost of starting over with a new bookkeeper.
From the virtual bookkeeper’s perspective, this structure can allow them to serve multiple companies anywhere in the country, giving them more knowledge of various systems and practices. Outsourcing your bookkeeping needs can provide a level of expertise that can otherwise be hard to get. Virtual bookkeeping firms and bookkeepers for hire often have quite a bit of experience in many different industries. Finding someone locally who can provide that level of expertise while staying within the client’s payroll budget may be a challenge.
Businesses don’t need to provide office space, a laptop, or other supplies to the virtual bookkeeper. Virtual bookkeepers have flexible schedules as long as specific tasks are completed by the assigned deadline.
Because virtual bookkeeping requires the bookkeeper to have remote access to your business’s critical financial documents, data security is essential. It may be necessary to strengthen your network firewalls and other protections before you allow your virtual bookkeeper access to this sensitive information.
You may also require the bookkeeper to sign a non-disclosure agreement (NDA). This provides your organization with some protection against the disclosure of its private data.
The average annual income for bookkeepers is approximately $60,000. This can vary based on location, the volume and complexity of transactions, and the bookkeeper’s experience. If this figure is well beyond your organization’s budget, it may be worthwhile to look into part-time or on-demand bookkeeping. This allows you to pay only for hours worked instead of having someone always on call. Many bookkeepers may prefer this arrangement, as it will enable them to take on other clients.
CFO Strategies also provides in-person, on-site work in addition to remote bookkeeping.
Suppose you’ve decided that hiring a bookkeeper, whether a virtual bookkeeper or someone on-site, is the best option for your organization. In that case, the next step is interviewing and hiring an independent bookkeeper or company that provides virtual bookkeeping. You should ask the candidate what types of accounting software they’re most comfortable with. If they’re limited to one kind of software and your organization uses another, this may be enough to remove them from the candidate pool.
Other questions include whether they’ve served companies in the same industry and what type of communication they expect and need. Does the candidate prefer to work with little direction other than due dates and assignments? Or would they choose an arrangement that provides a bit more guidance?
During the interview, you’ll want to ask questions that give you comfort as to the candidate’s ability to handle the volume and complexity of transactions that your company has. In addition, you should inquire how the candidate manages time, including multiple tasks, and their ability to meet deadlines. You’ll also want to discuss compensation. Do you prefer a payment arrangement where you pay per hour or a fixed fee? Some companies prefer to pay a weekly or monthly fee to remain “on-call” for your needs. Deciding this before the interview can help eliminate candidates whose needs are incompatible with yours.
Once you’ve selected a bookkeeper, it is time to provide remote access if they will work remotely. This includes access to the company systems and software the bookkeeper will use. Depending on the bookkeeper’s responsibilities, you may need to grant access to the bank accounts, payment processors, credit cards, or other payment platforms. Be sure to discuss with your IT company the best and most secure way to provide access to the bookkeeper. Again, maintaining an open line of communication with your bookkeeper can be the key to a great working relationship.
Whether hiring a bookkeeper as an independent contractor or an employee, it is crucial to outline your expectations in writing. The employment contract, or in the case of an independent bookkeeper, the service agreement or engagement letter, should cover issues like:
CFO Strategies provides companies with accounting and financial reporting services, including all functions performed by the CFO, controller, and bookkeeping on-site and virtually. Our services are generally designed for companies that need these services on a part-time basis, but we can also undertake total outsourcing engagements. Our cost-effective options are customized to fit each business’s needs, including the ability for full on-site services, complete virtual services, or a blend of both. We have many years of experience providing bookkeeping services for a range of industries, including but not limited to construction, architectural and engineering firms, and nonprofits.
To learn more about the benefits and impact we have made for our clients, read our client testimonials.
Contact us today to set up your consultation or just learn more about the services we offer.
