In the 21st century, startup culture is at its peak. Small businesses are springing up all around the world, whether it be tech startups or infant consultancy firms.
To expand a startup and make it successful, an entrepreneur has to put a lot of effort and time into the business. This is why there are various things that an entrepreneur can do, which will allow them to focus on the more important parts of the business. Hiring a virtual accountant is one such thing that will help any business greatly.
What does a virtual accountant do?
A virtual accountant serves similar functions to that of a traditional in-office accountant. To put it simply, a virtual accountant is hired to oversee the finances, books, and business accounts. There are various things that a virtual accountant does, which are all similar to what a traditional accountant would do for a business. The only difference is that a virtual accountant is doing it remotely. The following are some functions of a virtual accountant;
- Critically evaluating financial statements.
- Helping the business cut costs and run efficiently in terms of finances.
- Aiding the business in the technicalities of filing tax returns and other financial, legal work.
- Keeping a check on the salaries of employees on the payroll of the business.
What are the reasons why you would want to hire a virtual accountant?
Apart from a virtual accountant’s primary functions, there are many fringe benefits that a virtual accountant provides to the business. Following are some of the reasons why a virtual accountant will help your business exponentially;
- Virtual Accountants allow you to focus on expanding your business.
After hiring a virtual accountant overlooking and recording your business’s finances will be the accountant’s headache while you supervise them. This will allow you as an entrepreneur to focus on developing future plans for your business, including things like branching out, innovation, and investment. By freeing up headspace and time, you can strategically approach these delicate decisions, reducing error margin.
- Better alternative to setting up an in-house accounting department.
If you are thinking of establishing a full-fledged accounting department to oversee your finances, you might want to think again. The costs of an accounting department, when compared to virtual accounting services, will be huge. From creating office space to paying monthly salaries to buy software like Quickbooks, which cost more than a 1000$ per year, you will be spending a lot.
On the other hand, virtual accounting services work on a contract basis, eliminating things like vacation times and perks and benefits, etc. They also spread software and technology costs across their entire client base, which makes them cost much cheaper than an accounting department run by you.
- Valuable advice on your finances, cash flow, and business growth.
Accountants working in these companies like POP Business are highly skilled and properly trained for the work that they undertake. Not only will they carry out all the functions of an accountant flawlessly, but they will also advise your business on things like the best strategic approach to taxes.
At the same time, since they understand your financial situation and the market you are functioning in, they can also aid you in expanding your business sustainably and efficiently.
All in all, in the current day and age, almost everything has shifted to a virtual setting, especially in the current times of corona, where work from home has become a necessity rather than a choice.
In light of these developments, virtual accountants are a real need for infant businesses alongside the advancement in information technology. It is a lot easier to get all your work done remotely rather than building an accounting department’s entire office space. Virtual Accountants meet a real need in the 21st century.