What Is Virtual Accountant and It’s Benefits
A Virtual Accountant: What Is It?
An accountant can be called the backbone of any accounting practice, and it is jokingly called the only job that does not face recession. No matter what the market’s trends are, bullish or bearish, calculations and transactions will keep on coming. But these days, the accounting market in the UK is facing an unexpected challenge.
Currently, the UK market is facing a talent crunch with regard to accountants due to various factors such as early retirement, rigid work environment, the perceived threat of automation, and so on, thus creating challenges in hiring. Also, there is a growing demand for accountants due to the strict regulatory environment. To address this challenge, various accounting practices have put their faith in virtual accountants who work as a freelancers or have started availing the virtual accounting services of an outsourced accounting service provider.
A virtual accountant works online rather than an accountant working in a traditional office. Meeting a virtual accountant face-to-face is out of the question, apart from having online meetings to coordinate with your accounting team. In this blog, we help you understand virtual accounting services better so that you can choose the best for yourself.
Work Process of Virtual Accountants
A freelance virtual accountant will be working from home, but such accountants may need more experience than your accounting practice is looking for. Hence, you must approach a professional accounting service provider that offers virtual accounting services. Through professional service providers, you will get access to experienced virtual accountants who can reduce the burden on your existing team and collaborate with them on important accounting tasks such as bookkeeping, tax preparation, VAT, and so on.
Such important accounting tasks are done flawlessly by virtual accountants under service providers thanks to advanced software tools and up-to-date accounting processes. Your team can collaborate with them by maintaining communication via phone, email, video conference, or messaging platforms like Microsoft Teams. Also, you can access their reports and send documents such as financial reports, bank statements, and receipts through their online portal.
Benefits of Virtual Accounting Services
The challenges regarding the availability of accountants in the UK market and recruiting them are here to stay. Therefore, the virtual accounting services offered by service providers are also here to stay for the forceable future.
Indeed, the shortage of accountants has made virtual accounting unsustainable; nevertheless, it offers important benefits that have made it sustainable. Let’s have a look at them one by one.
Saves your Time and Money
Working on multiple accounting tasks, such as payroll, bookkeeping, VAT, etc., is a time-consuming process. To handle you will have to recruit additional professional accountants. Of course, once they are recruited, training and orientation will be needed, which may take some time and will be costly.
In such a situation, you will need the urgent help of a virtual accountant who will provide much-needed support through professional advice. A virtual accountant will do all the accounting jobs on your behalf while you can focus more on strategies and making business decisions. Indeed, it may cost you some, but in the long run, it will save cost.
Expert Opinion
Professional service providers like Corient Business Solutions go to a great extent to recruit the best and most experienced accountants so that they can offer excellent virtual accounting services to you. A professional virtual accountant has a grasp of taxation laws and accountancy and is thus able to give you expert guidance and solutions. Through expert guidance, you will be able to make informed decisions.
Information in Real-Time
Every virtual accountant recruited by a professional service provider uses accounting software and cloud-based accounting to complete the task. Through cloud-based software, you can access all financial data in real time. The sensitive information is always updated and can be accessed by an authorised person.
Reduction in Overhead Costs
Without a virtual accountant, you will have to recruit and train an accountant in your accounting processes. When you recruit someone as your employee, you are bound to provide them with appropriate salary, benefits, insurance, and other employee-related benefits. Also, the expenses made on essential office infrastructure, such as desktops and chairs, without which an accountant cannot perform, must be taken into consideration.
A virtual accountant is available on a contractual basis based on a fixed charge. This way, you can save a lot on employee benefits. Such savings are essential for small accounting practices, which can then invest in upgrading their accounting services.
How Much Does a Virtual Accountant Cost?
A virtual accountant will cost you as per the services you avail. A virtual accountant cost will be based on an hourly basis, so if they offer you fewer services, it will be costly. But if your accounting practice is expanding rapidly, then based on your business size, you can bargain for better rates and also get more services.
How to Become a Virtual Accountant
Virtual accounting services will be a mainstay for multiple accounting firms and practices. Therefore, if you want to expand your business into it, you have to meet specific requirements.
What Services Will You Offer?
Identify your niche in certain services that you can offer and the type of clients you want to attract. Once you have established yourself with your niche clients, expand your offerings to others.
Setting up Formalities
Select a name and register with the HMRC and other relevant regulatory authorities. Also, apply for the licenses before you start your services.
Technology
You will need to invest in a desktop or a laptop to turn your accountant into a virtual accountant. Also, get cloud accounting software, various other accounting tools, and a secure portal for sending and receiving reports and documents from your clients.
Face-to-face meetings will only be possible through Microsoft Teams, so get the latest version so that you can collaborate with your clients effectively. But this is not the end. As your business grows, so will your requirement to invest in various other technologies.
Marketing your Services
Once you have built an efficient virtual accounting process and services, it is time to market them effectively. Such marketing can be done through social media, online advertisements, offline networking, and stalls in trade shows and conferences.
How To Choose the Best Virtual Accountant
It would be wise to avail yourself of the services of a virtual accountant through a professional service provider. The reason behind this is that service providers take scrutinise an accountant thoroughly. After all the effectiveness of their services depends on them. Once you outsource your accounting task to a professional service provider, an experienced accountant will be at your service.
Also, service providers make advanced tools and accounting software available to their virtual accountants. So, the services and reports will be available fast and accurately.
Conclusion
To sum up, virtual accounting services are here to stay because, as per the ACCA survey. Most accounting firms find it difficult to recruit accountants due to the challenges mentioned in the introduction. You can use this service from a freelance virtual accountant, which has challenges. Or else through an accounting service provider such as Corient Business Solutions.
We specialise in offering tailored accounting services for accounting practices. Our teams have vast experience in Sage, QuickBooks, Brightpay, Xero, Moneysoft, Earnie, and Star Payroll. Our year-end, VAT, payroll, and bookkeeping outsourcing services are designed to give your practice an edge in the market, thus saving you time to invest in other important tasks. We can connect at your convenience by phone or online meeting to discuss our services in detail.