What is Virtual Accounting?
Most companies invest significantly in bookkeeping and accounting within their operation. Keeping correct records is critical to making wise business decisions and knowing where your company is at any given point. Yet, hiring and maintaining an accountant within your business is costly and may not always be the best choice. Virtual accounting or virtual CFO services can be a great option for many organizations.
What Is Virtual Accounting and How Does It Work?
Virtual accounting is a service in which certified and well-qualified professionals provide accounting services to their clients in a virtual environment. They are not working as an employee of the company but providing professional services from another physical location, communicating with the company over the internet and in the cloud. The same applies to all types of virtual CFO services.
What Are the Pros of Virtual Accounting?
There are numerous benefits of using a virtual accounting service. They include:
Experienced Guidance at a Lower Cost
Perhaps one of the most important reasons to use virtual CFO services is because they are highly experienced professionals and they are not on your company’s payroll. As a result, you save money on the administration of payroll and other taxes. These virtual accounting services often provide a higher service level at a lower price point than what companies currently spend on an onsite bookkeeper.
The Flexibility of Service Improves
For those using a traditional accounting firm that provides services locally, there are still numerous tasks your staff has to handle to get documents and materials to the tax accountant. It takes time and adds to labor costs. It also increases the risk of mistakes. With virtual services, there are fewer physical documents, as was common a long time ago, as now all the recording of accounting entries takes place in your accounting and bookkeeping software.
More Advanced Service Provided
Often, when utilizing this type of service, your company will have access to more advanced services as it is more cost-effective to hire virtual accountants. As a result, your business will now have more tools and resources to better understand the company’s financial health at any given point: including better accuracy, insight, better reporting, and overall access to the data you need in a real-time environment.
In some situations, this may mean access to higher-end services from multiple people. For example, many virtual CFO services work well within a team environment rather than having just one person do the work. That means more people are offering ideas, solving problems, and creating solutions. It also implies peer review can solve more complicated situations or ensure the best possible insight and decisions.
Electronic Bookkeeping Enhances Access
Moving to a virtual accounting service means your business will employ the use of electronic record keeping. That means the information you input into your system or that your computer system collects will be managed within an accounting program that is digitally based and secure. You now will have access to mobile apps anytime and anywhere. You can get rid of those filing cabinets you’re using!
Flexibility with CFO Services
Another key advantage of using a CFO virtual service like this is the flexibility to choose the types of financial services you want. You may not need every service virtual CFO service company to offer to the organization. For example, your business may not initially need a monthly financial review and you may not want to utilize financial operations support right away. However, you can pick and choose from various services and tailor the services based on your needs. Even better, you can increase or decrease the number of services you are receiving at any time.
What Are the Cons of Virtual Accounting Services?
Both virtual accounting services and on-site accounting services have both positives and negatives. While virtual accounting has many pros, there also are some drawbacks to consider.
Mistakes Can Still Happen
Keep in mind that in any application, nothing is perfect. Human error is always a factor. That is, virtual accounting can be very accurate and efficient, but mistakes can occur just as they would in traditional accounting methods. It may be the case that there are more checks and balances with this method over others, which means mistakes are rare, but you still need to know this is a concern.
No One in House
If you desire to have a bookkeeper working on-site or would like more oversight and hands-on direction, virtual accounting may not be the best fit for your business.
While virtual services keep you connected, and all of the data you need is available 24/7 to you within the virtual system many companies like to have accounting personnel in the office at all times.
Is Virtual Accounting Right for You?
Deciding to go virtual – for accounting, controller, and bookkeeping services may be your business’s best decision. It can simplify many of the complications you have within your operations and reduce your costs. It also provides you with accurate, transparent documents and reports available to you at your fingertips.
For most companies, this is a huge bonus. At CFO Strategies, we can provide you with a customized quote for the services you need. Contact us today to schedule a complimentary business review.