Accounting is one of the essential pillars of any business. Everyday accounting tasks include managing the cash flow, balancing books, and ensuring you make all payments on time. Consequently, accountants became highly sought-after professionals, with various organizations confirming they hired only the best experts and held on to them.
However, digitization has shifted many landscapes, including how companies handle their work and manage their time. One of its most pivotal changes was transforming accounting into a virtual task. In 2021, almost 40% of accounting personnel in the US were working remotely.
Additionally, accounts payable automation software can save a company more than $16 per invoice.
Following these stats, it is easy to see why virtual accounting is trending. The benefits of going online instead of physically coming in for work offer flexibility, save time, and help businesses cut down unnecessary costs and save more. To help you understand the importance of virtual accounting, here is what you need to know:
What Is Virtual Accounting?
Virtual accounting is a process in which you do all your tasks as an accountant from a remote location. This technique is also commonly known as remote or cloud accounting. Therefore, you can work from anywhere, including at home or in an office shared with other people. You can do many virtual accounting jobs once you successfully acquire an accounting degree and hold at least a master’s to tap into senior positions.
These can include offering your accounting services, helping your clients manage their books, and representing high-end clients like the IRS or any taxing authority if you have both the experience and education. All you need to get started is a functional laptop, internet connection, and popular accounting software. Your primary role will include managing account receivables, filing tax forms, and reconciling financial statements.
Why Is Virtual Accounting So Popular?
Virtual accounting is making waves in the financial sector, and for the right reasons. The bottom line of any business is to keep its cash flow in an ironclad grip without missing a beat in tracking its expenses, forecasting sales, and keeping customers happy. The following depicts how:
1. Faster Updation on Books
Cloud software is a beneficial tool for you as an accountant. Using this tool, you can get the information you need to update books without needing to retrieve physical documents. So if you store information such as bank statements, receipts, invoices, and total revenue, you can log into your account and utilize them anywhere at any time. While working on a corporate level, you can easily manage all day-to-day bookkeeping tasks without the need to wait for the last moment. Cloud computing also allows you to structure your data chronologically. As a result, you can add data and titles and number the files, which helps keep your work tidy and on time.
2. Efficient Response Time
Unresponsive businesses are the biggest pet peeve for any consumer. They want immediate answers to their questions and don’t want a delay in the consumer services you provide. It is hard to achieve in a regular office setting since you work for limited hours and can get back to a client the next day. But going online and becoming a remote employee, you’re no longer constrained to a rigid schedule and have the opportunity to stay online anytime your consumer needs you. Virtual accounting keeps all the relevant details you need at the touch of your finger. You can immediately check and talk to them if a client wants to know about their expenses, budget, or account activity overview.
Additionally, tools like Skype and zoom allow you to have online meetings. At the same time, you can use a spreadsheet like google sheets to make calculations and share them with your customer superficially. This quick response and increased cooperation can leave customers satisfied with their decisions to work with you. As a result, you climb up the business sector and end up with large enterprises willing to work with you. If you’re representing a particular business, this boosts their reputation and increases their profit margin, which impacts their net worth.
3. Massive Reduction in Costs
Running a business isn’t cheap. Numerous costs go into keeping one branch afloat. Among these are utility bills, vendor payments, outsourcing suppliers, and upgrading to the latest tech tools.
But by switching over to a virtual environment, you play a significant role in cutting down the costs of hiring an accountant. Depending on how you work, you can charge a business based on the services you provide or on a fixed monthly price which boils down to the amount of work you do for the company.
Since virtual accounting depends on using a cloud computer and a handful of accounting software, there is no need for external drives like hard drives or USBs. You can also work with more than one company at a time to manage their financial details, mutually benefiting you and the business sector.
You also save time traveling, get reimbursed for public transport, and can work with minimal interruptions. In short, for any corporation, virtual accounting is the most convenient option.
4. Data is Better Secured
Financial data is sensitive. Details on bank accounts, potential investment avenues, assets, and monetary resources must be protected and avoided from any attempts to get breached. When this information gets stolen or destroyed, it can deliver a staggering blow to any company and push them out of the competition. As a result, virtual accounting is becoming increasingly popular in business. Cloud computing, data encryption, and VPNs to hide IP addresses are not easy to track down and crack open, which considerably safeguards the data. You cannot transfer any document without entering the proper credentials and passing through the two-factor authentication, which once again subsided any data breach attempt.
Virtual accounting is a steadily growing sub-field within traditional accounting. Previously, organizations needed accountants to manage all financial data at their companies. Still, as concepts like cloud computing and AI become more prominent, virtual accounting has also risen in the ranks. Accountant can handle their responsibilities online and remotely through this method. Thus, as an accountant, you work exclusively with your laptop and provide enterprise-specific solutions. Accounting services include balancing books, consulting, filing tax forms, and reconciling accounts. It helps businesses get faster results, is more convenient and cost-effective and keeps their data much safer.