Taking care of accounts is complex and challenging for businesses, especially for small and medium-sized firms. If your in-house accounting staff is unable to handle your day-to-day accounts and you do not have experts in your locality.
Wondering what
virtual accounting is. Do not worry; we are here to help you. This article will give you holistic view of virtual accounting and how it can make accounting simplified.
What is virtual accounting?
A systematic method of recording, analyzing, and interpreting business information is accounting. It also helps track financial operations, meet legal obligations, and make business decisions.
Virtual accounting is no different; it also does the same job. But, the only difference is that all the accounting services are performed remotely via the internet and using cloud-based solutions.
What does a virtual accountant do?
A virtual accountant does the following tasks:
- General Ledger Maintenance
- Bank Reconciliation
- Balance Sheets Maintenance
- Tax Returns Preparation
- Tax Retirement Planning
- Cash Flow Management
- IRS Representation
- Payroll Processing
- Accounts Payable and Accounts Receivable management
- Financial Statement Preparation
What are its advantages?
The
advantages of hiring a virtual accountant in place of a traditional accountant are:
- Virtual accounting needs minimum paperwork.
- It increases your business profitability.
- Virtual accountants have global presence, hence are easy to hire.
- They can smoothly integrate with your existing accounting department.
- They use the latest technologies while taking care of your accounting needs.
How is it different from traditional accounting?
Many people are scared to shift from traditional accounting to virtual accounting. The below comparison between traditional and virtual accounting will help you choose between the two:
| Traditional Accounting |
Virtual Accounting |
| Rigid working pattern |
Flexible working style |
| Constrained experience |
Diverse work experience |
| Outdated working model |
Updated techniques and skills |
| Limited talent available |
Global talent |
| Additional Employee benefits required |
No Additional employee benefits |
| Occupies office space |
Don’t require office space |
Let’s sum up:
Virtual accounting services are easy to deploy, affordable, and readily scalable. Small and emerging entities can hire one-on-one dedicated CPAs by taking advantage of virtual accounting. It provides an extra cushion to focus on your core business areas and increases the overall productivity and profitability.
Get customized, most cost-effective, and highly efficient virtual accounting packages at
Harshwal Company & LLP that helps you fulfill your business desires.