If your idea of a bookkeeper still resembles Bob Cratchit in A Christmas Carol (Muppets version obviously!) making handwritten entries into a huge ledger book with his ink well and quill then have I got news for you!
Bookkeeping has come a long way since Dickens was writing his Christmas classic back in the 19th century and if there’s one thing we’ve all learnt this past year, it’s that working remotely is far more effective than a lot of us had previously imagined
What is Virtual Bookkeeping?
Outsourcing your bookkeeping no longer requires you to be delivering piles of paperwork to someone’s office each quarter because it can be all be done entirely remotely
Using cloud-based software all the necessary financial information can be shared remotely, and most importantly, very securely giving you up to date financial information about your business at the touch of a button. Meaning you can access it whether you are at your desk or on the go via an app
Why is bookkeeping important?
Falling behind with your bookkeeping often leads to you scrabbling around at the ned of the tax year trying to find copies of receipts and invoices. It also makes it very tricky to have a clear understanding of the financial position of your business so that you can make well informed business decisions.
Why use a Virtual Bookkeeper?
You know its time to think about outsourcing your bookkeeping when:
- You’ve fallen behind on your bookkeeping and you need help to catch up
- You simply don’t have the time or the energy for it
- Submitting tax returns is always a last-minute rush and very stressful
- You want to be able to keep track of your expenses and maximise the amount you can claim within the guidelines
- You want to better understand and track the cash flow situation in your business
- You’re currently paying an accountant to sort everything pout at the end of every tax year and want to save some money
How it works in practice
1. The first step is to choose a bookkeeping software package. There are lots on the market these days but I recommend either Xero or FreeAgent as I am partnered with both. You should choose one that you feel most comfortable working with as you should always ensure that you are able to keep an overview of your bookkeeping as you remain responsible for your finances
2. One of the easiest ways to begin to automate your accounting is to connect your bank account to your software via a bank feed. This will allow transactions to be imported automatically and avoid any duplications or omissions
3. All invoices and receipts can be shared via email or directly into the software. Both Xero and FreeAgent have processes whereby you can upload any documentation directly into the software. This can then be processed by your bookkeeper and allocated to the appropriate transaction
4. You can also ask your bookkeeper to produce quotes and invoices. Reminders can be sent automatically, saving you time chasing people for payments
5. If you are VAT registered you can connect to HMRC to submit your filings automatically for each period
6. At the end of the tax year you will find that you can very quickly and easily provide everything that you or your accountant needs to submit tax returns
How much does it cost?
Different bookkeepers will charge different amounts, but you can find out more about my charges here
It’s never been easier to work remotely to keep on top of your bookkeeping!
Still have some questions?
Book a free call with me here to find out more