2020 was the year many accounting firms redefined work. Many firms had to deal with excessive workloads and staffing shortages. A lot of these accounting firms found solace in virtual accounting companies. These arrangements proved to be beneficial to accounting firms in terms of flexibility and cost. Here’s a rundown on how virtual bookkeeping service providers continue to help accounting firms overcome the countless challenges in today’s accountancy sector.
What is a Virtual Accounting Company ?
A virtual accounting company, as the name suggests, operates virtually. Since the pandemic, people have become accustomed to the idea of remote work. Virtual accountants also work remotely. In fact, they’ve been working remotely and helping offshore clients long before the COVID19 pandemic forced everyone to start working indoors. However, their popularity surged during the pandemic as many accounting firms were severely understaffed and under-resourced.The leading virtual accounting companies hire experts in accounting software tools. These experts provide remote accounting and bookkeeping support to foreign clients using the best accounting software programs such as QuickBooks, Xero, etc. More importantly, these companies offer customized packages to accounting firms and other parts of the world. Their flexible pricing plans allow accounting firms to delegate large amounts of work without worrying about the costs.Why Do Accounting Firms Rely on These Companies?
Accounting firms were facing a myriad of challenges long before the COVID19 pandemic. Hiring high-quality accountants are very difficult. Most accountants demand heavy salaries. Small-scale accounting firms can’t afford to pay such large salaries. Plus, the best accountants working in small-scale firms are regularly scouted and lured away by larger firms. As a result, during the pandemic, many accounting firms were severely understaffed.By partnering with offshore accounting experts, these firms were able to –
Save Recruitment Fees
The recruitment process alone can cost accounting firms up to half of their annual salary. When they partner with offshore accounting firms, they receive instant access to highly qualified accountants. These accountants can easily perform important accounting tasks over the internet.- Invoicing clients
- Preparing bank reconciliations
- Payroll management
- Preparing month-end journals
- Preparing accounts receivable and accounts payable reports
- Multi-currency accounting
- Cash flow management
