Top 5 Myths about Virtual Accounting:
Cloud Accounting or Virtual Accounting is a term used for when a firm chooses to outsource its accounts to a Virtual Bookkeeping or Accounting Firm. Several businesses have opted for this route and have started outsourcing or are actively considering outsourcing their accounts to Virtual Bookkeeping Firms specializing in providing such services. However, there is always some skepticism in trying out something new. So let's try busting a few common misconceptions or myths about Virtual Bookkeeping.
1. It's just Data Entry and a DIY project:
Bookkeeping is a lot of data entry, but it is not only data entry. Bookkeeping involves several other tasks such as invoicing, managing accounts and ledgers, statements, payments, generating vouchers and bills. Bookkeepers also have the arduous job of reconciling accounts when discrepancies arise, preparing financial statements, developing and pursuing outstanding payments, managing refunds. It also helps in future forecasting and highlighting the financial issues the business is facing.
The above point helps bring into light that unless one is an accounting whiz or has an in-depth knowledge of accounting softwares, Virtual Accounting may be a doomed DIY project. It is a job well suited to experts in the field who can help with all the features and bring to the table all the benefits of virtual accounting.
2. Virtual Bookkeeping is for big businesses and is Expensive:
For small businesses, hiring a full-time bookkeeper is unaffordable and expensive. Many small business owners believe that it is a luxury. Hiring a full-time bookkeeper is certainly costly as it means a full-time employee, a whole paycheck, benefits. Virtual accounting is a one-time expense, which is easily customizable to suit the needs and the volume of any organization.
3. Lack of Security and Trust:
Data security is genuine nowadays. It is natural and understandable that a business owner would have security concerns regarding a potential security breach or leak of their financial data. Professional Bookkeepers, both virtual and personal, build their business on reliability and trust. This is especially the case with Virtual bookkeeping firms. They have more robust security measures and encryption software to help them protect the data of their clients. They are business owners themselves, fully committed to client satisfaction and build trust, security, and relationships. There are also various legal ramifications for the service providers themselves, making them doubly cautious with their clients' data.
4.Time Management:
It is believed that shifting from manual to virtual bookkeeping is time-consuming and tedious. Contrary to belief, it is not. It does require an initial shifting time and time to get used to a new system. It relieves the employees and business owners from the brunt of monotonous bookkeeping work, freeing up a lot of time. This brings about a remarkable shift in productivity and quality of work. Once trained, even the least tech-savvy employees can complete and keep abreast of the day-to-day accounts.
5. Virtual Accounting needs a change in infrastructure:
Many times, small and medium business owners hesitate and shy away from virtual accounting. They are under the misconception that they need an overhaul in terms of infrastructure to opt for virtual bookkeeping. In contrast, the reality is entirely different. In most cases, the available infrastructure can incorporate virtual bookkeeping services with minimal changes.
If you are a small or a medium business owner, bookkeeping is essential to your growth. A growing business needs a streamlined and accurate accounting system to allow for the ever-increasing volume of transactions. So please don't let the myths regarding virtual accounting stop you from choosing a viable and profitable solution for your organization.
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