If you have prior experience in bookkeeping or accounting, becoming a Virtual Bookkeeper may be the perfect option for you. Many small to medium-sized business owners do not have the time to manage their finances. This essential task often gets placed on the back burner causing many problems for them in the future. If you’re considering becoming a virtual bookkeeper, below is a brief guide of the tasks you would be performing for company owners. This is not an exhaustive list by any means, but may give you a better perspective of the types of services you could offer as a virtual bookkeeper.
Accounts Payable
Accounts payable includes all aspects of paying balances or bills due to suppliers and creditors for services and/or supplies needed to run a business. In simple terms, it includes paying and managing bills that are due by the small business owner to the supplier. Examples of tasks involved are:
- Tracking money owed to various contractors and merchants.
- Paying and processing bills on time.
- Charging expenses to the correct accounts.
- Reconciling invoices to balances owed on the account.
Accounts Receivable
Accounts receivable involves tracking, managing, and invoicing clients and/or customers for products or services purchased from the small business owner. For example, a virtual bookkeeper would take care of these accounts receivable tasks:
- Generating invoices and account statements.
- Maintaining all files and records.
- Reconciling various client or customer accounts.
- Resolving and investigating any discrepancies.
Managing Payroll
Managing payroll for a small business is much more than simply printing or depositing paychecks. Many businesses hire a separate payroll service due to the number of tasks involved. A virtual bookkeeper can efficiently maintain payroll for a small business. This service includes:
- Processing payroll including various deductions and payroll taxes.
- Keeping employee records such as contact information, wage, and more.
- Maintaining financial records including vacation time, sick time, 401(k) balances, and other benefits.
- Filing W-2s and other various tax information each year.
Creating Financial Reports
Creating financial reports for small business owners is an essential task for any virtual bookkeeper. Business owners use this information to guide their decision-making process as it tells them the current financial status of their business. This data will help them decide if they can afford to hire another employee, if they can add valuable products to their inventory, or if they need to cut back on expenses. Types of reports a virtual bookkeeper is responsible for creating are:
- Balance sheets that track both assets and liabilities.
- Income statements including revenue and expenses.
- Cash flow statement showing the actual funds that are in their account.
Start Your VA Journey Today
If bookkeeping is not your area of expertise, you could also consider becoming a social media virtual assistant, administrative virtual assistant, or real estate virtual assistant. The possibilities are truly endless in the virtual or online business world. Be sure to also check out our free and affordable resources that will help you as you begin your VA journey – new client welcome documents, done-for-you social media graphics, WordPress training videos, and more!