How Virtual Bookkeeping Works

How Virtual Bookkeeping Works



As technology advances, more industries and services are going paperless and are handled largely through online platforms and communication. This is the case in the world of bookkeeping. For some businesses, the idea of virtual financial data storage and management can be scary; while for others not so much. So for those who fall in the not-so-sure, should virtual bookkeeping or using cloud-based technologies raise any concerns? Here we explore how digital bookkeeping works, and how it can save you time, money, and headache.



Already in the cloud? All you have to do is add your bookkeeper to your Quickbooks Online file or Xero, and choose the level of access (recommended to choose "accountant" access). Simply add their name and email address, and you're ready! 

If you’re using a desktop program, you will need to either:

  • Download a backup/portable file of your financial information and email it to your bookkeeper or

  • Set your hired bookkeeper up with remote access to your computer



After providing access to your books, the bookkeeper is going to need access to your banking and credit card institutions. Most banks have the option to add an individual to your account as a read-only user, which means your bookkeeper can pull monthly statements and view check images, but does not have access to your funds. This is a key step and enables your bookkeeper to do their job without having to reach out to you each time they need something from your bank.



Depending on how you’ve been managing your back-office financial operations, you may need to provide access to a couple more documents to help your bookkeeper become familiar with your business.

  1. Payroll
  2. Receipts
  3. Tax documents
  4. Online bill pay
  5. Any other relevant apps like Shopify, PayPal, Stripe, etc.

This step is all dependent on your unique business, but be prepared to dust these off and share them with your bookkeeper (virtually, of course). 



Having an in-house bookkeeper vs. a remote one is a no-brainer. Remote bookkeepers are able to offer part-time services that meet all of your small business' needs. In addition, bookkeepers working remotely maintain numerous clients in their book of business; meaning they offer both talent and experience. Your bookkeeping service provider should double as your business partner, rather than an employee.



Quickbooks cloud hosting means all of your financial data is backed up and accessible, all of the time. Using a remote bookkeeping service means the burden of backing up your data is taken off your shoulders and is managed regularly by your bookkeeping service. 


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