Virtual Bookkeepers vs. In House Bookkeepers

Bookkeeping involves the daily tasks of updating and maintaining a company’s accounts receivable and accounts payable, as well as updating client information and creating and sending out invoices for work that has been completed for customers. Every business should have an educated, experienced bookkeeper in charge of keeping the company’s accounting records up-to-date so that the owner can determine how the business is doing and make future projections as well.

When it comes to hiring a bookkeeper, a company has several options, including hiring an in house bookkeeper that will show up at the office, log in a particular number of hours, and work using the office equipment and software provided by the organization, or hiring a virtual bookkeeper who will work from remote while performing all the same duties as the in house bookkeeper.

Virtual Bookkeepers
A virtual bookkeeper is really no different from an in house bookkeeper, except she would work from home. This arrangement is known as telecommuting, or working from remote. If a bookkeeper is skilled, organized, and dedicated, she will be able to successfully manage a company’s financial records, reconcile errors and discrepancies, and provide support to the business owner and staff members.

Virtual bookkeepers use their own equipment, including their own computer and software systems, internet, and phone system. They manage their own office environments and are responsible for their own supplies. This can save a business owner money that he would have otherwise spent on maintaining all of these areas of his own office.

 
A business owner who hires a virtual bookkeeper can choose to pay her as an independent contractor or as a member of the company’s staff. Unlike an employee on payroll, an independent contractor doesn’t receive benefits, which would save a business money, nor would the business have to pay employment taxes for her.

A virtual bookkeeper would gain access to a company’s server, and in doing so, would be able to download the software required to maintain the financial records she accesses. Because the virtual bookkeeper and the company use the same software, everything is updated in real time and both parties can see any changes made.

In House Bookkeepers
In house bookkeepers don’t have as much flexibility as virtual bookkeepers. They need to make sure they arrive and leave their job at specific times, and they have the added expenses of commuting to and from work.

In house bookkeepers use all of the supplies and office equipment that the business owner provides. In addition, they are usually on the company’s payroll, which means the business can offer benefits such as insurance, and the business is subjected to employment taxes as well.

The great thing about using an in house bookkeeper, however, is that a business owner can stay on top of the hours and work she puts in, ensuring that he’s getting what he’s paying for. An in house bookkeeper is available in the event something needs to be done right away, she can be asked questions, and she is available to fulfil other tasks, if necessary.

About the author:
Laura is a writer for www.liptrottandwoosey.co.uk, a firm that helps businesses in all areas related to accountancy. She enjoys sharing information to help business owners maintain their financial records and project future earnings.