The digital era has provided so much comfort to us that we try to incorporate digitalization in all segments. Nowadays, several businesses are looking to focus on their core products or services. They look forward to outsourcing the rest of their work. This allows them to understand customer needs and provide better products.
In the year 2020, when the world was going through the pandemic all professionals including accounting professionals were disturbed. The accountants, bookkeepers, and others were compelled to move their work to their homes to work remotely.
So this gave a boost to the virtual accounting system. It provided them with more benefits by reducing costs. There are still some businesses that are reluctant to accept the importance of working virtually. So, let us look in detail at virtual accounting and its benefits.
Virtual accounting is a process through which finance professionals provide services to customers through virtual mediums. The accountant provides financial services using different technologies rather than working physically.
Virtual accounting provides all the services an individual would have physically provided in the office. This makes virtual accounting solutions cost-effective and provides working flexibility to professionals.
The benefits of virtual accounting services are too many to count; let us explore them in this blog post.
● Less paperwork - Cloud services help virtual accountancy safeguard digital records of clients' documents. With the use of technology, clients can access all the required documents through a digital medium.
This decreases the use of paper and printouts. With advanced security, all the documents are securely stored in the cloud. The clients and the finance people can access the documents as per their requirements from any system.
● Cost-saving - The virtual accounting option acts as a huge cost-saver for organizations. The companies have to only pay for the accounting work, without bearing the extra costs.
For example, if we hire a professional internally, we have to pay them the salaries and all the other benefits, which is not the case when we opt the virtual accounting solutions. So, companies with limited budgets can avail of these options to save money and divert the saved funds for other important tasks.
● Enhanced quality & flexibility - When we outsource financial services to third parties, it will provide more time to focus on other crucial matters. We do not have to hire account professionals in-house, rather we can focus on the things that can take our business to new heights. We will have more time to focus on quality than worrying about financial tasks.
● Personalized accounting services - Apart from regular accounting services, some companies require specialized accounting services. The in-house finance team may not provide these specific services.
It may cost the company a lot to hire full-time resources for these services. Virtual accountancy comes into play by providing them with the requisite services.
● Improved security & technology - Virtual accountancy relies on the latest technology and is laced with advanced security. These builds trust between the companies and the accountancy partner.
With advanced cloud services, companies can view the required documents without the fear of them getting leaked. The company can access any financial document at any time from any device. All the financial data stored in servers are protected against any kind of cyber threats.
● Detailed reports - The virtual accounting partners have proper procedures to provide their clients with detailed reports on schedule. The companies would get timely alerts to complete the pending items.
This would help the companies to be on track with their finances. They do not have to keep track of tax, accounting, or other financial engagements. The virtual accounting partners are responsible for keeping their client's companies updated with regulatory compliances.
With times changing, many companies are looking to hire virtual accountants to manage their financial segment. Some big companies are looking to get extra help in the form of virtual accountancy to manage their books.
There are several virtual accountancy firms. It is very important to do research before hiring a third-party firm to handle the finances. Before hiring a firm to handle financial accountancy, do keep in mind the following factors:
● Always check for the credibility of the partner through different clients.
● Get to understand the services provided by the virtual accountancy partner.
● It is very important to check if the firm is available during the business hour of the client.
● Know if the firm provides regular updates on the balance sheets.
● The firm should be updated with all the regulatory compliances and should be able to make their client's company tax compliant.
● Assess and understand if hiring a virtual accountancy firm would benefit the company.
For many companies, shifting from traditional to virtual accountancy is difficult. But, with several benefits provided by the same, it is a good decision to outsource the finance segment to virtual accountant firms.
They would handle it efficiently and would be cost-effective. This would help the companies to focus on their core competencies and take their firm to new heights of success.