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What Is Virtual Book-Keeping? Understanding The Concept.

One that appears to be real is not so; it may be is "virtual." The concept of a Virtual Assistant is very common in present-day business management. The basic logic supporting this concept is outsourcing office-related work such as letter drafting, typing, communicating, coordinating, etc. Less staffing cost is also the rationale behind the virtual assistant.

 

Technically, virtual bookkeeping is the part of the financial task of recording the "Debit" and "Credit" transactions (double entry) of an organization by a person without being physically present in the workplace for carrying out these tasks. Also known as online bookkeeping or remote bookkeeping, virtual bookkeeping works remotely by using cloud-based software.

 

With IT's advancement, online sales and purchases have become almost a traditional feature because of the facilities and ease of usability. But, was it ever thought that education, including technical education, could ever be required to be imparted online. Yes, it has become a reality now because of the constraints imposed on people's physical mobility by the global pandemic, Corona. A part of the reasons for virtual bookkeeping may be attributed to this too.

 

You can hire the services of a remote bookkeeper on a contractual or freelancing basis. He/she may be a part-time or full-time employee of your organization.

 

Reasons for Hiring

 

Book-keeping is a profession by itself. Besides having the basic qualification on commerce and accounting, a bookkeeper needs to have a minimum understanding of the following periodical financial statements

 

Monthly, quarterly, or annual Profit and loss account for commercial organizations

 

Receipt and expenditure statements for Non-Government Organizations (NGO)

 

Balance Sheet as on a particular date, exhibiting the assets and liabilities

 

Fixed assets schedules

 

Cash-flow statements

 

Conforming to Income tax requirement.

 

Statement of changes in equity

 

It is not always possible to get a duly qualified and experienced bookkeeper or accountant to discharge all the above duties in your locality. In most cases, remuneration demanded is comparatively higher. You can even get online services on an hourly basis.

 

Difference of Tasks

 

 

Keeping records of receipt and payments and data-entry through accounting software ( QuickBooks Desktop)

Accounts receivable
Accounts payable
Receipt Management; invoicing and billing customers
Expenses Management
Reconciliation of Payroll
Reconciliation of bank accounts
Making you available for planning and budget
Adjusting the projected cash-flow and working capital assessment
Allowing accurate loan applications and other finance-related matters
Tracking of receipts and payments

 

Originally Published By https://bookkeeperlive.com/