Why You Should Hire a Remote Bookkeeper?

• Reading Time: 10 Minutes
• Published: November 6, 2024
• Last Updated: February 15, 2025

The number of companies hiring a remote bookkeeper is rapidly increasing, and for good reasons. Online bookkeeping services Australia allows companies to efficiently manage their finances without the cost of setting up an in-house staff. These services help businesses strike a perfect balance between accurate financial management and cost efficiency. In this blog, we delve deeper into why you should consider outsourcing your bookkeeping services.

What is Remote Bookkeeping?

Remote bookkeeping services involve managing a business’s financial records and transactions from a remote location. An online bookkeeper leverages cloud-based software to provide a wide range of bookkeeping online services. The remote professional takes care of tasks such as data entry, invoice processing, and financial report preparation. It allows companies to gain accurate financial data without needing an in-house bookkeeper.

The convenience and cost-efficiency of bookkeeping online services are the primary reasons these solutions are becoming more apparent. They help companies save on rent and utilities, recruit and train staff, and set up an in-house infrastructure. When experts handle the finances, companies can focus better on their core operational areas and pave the way for growth. Virtual bookkeeping services are especially important for small and medium-sized businesses with limited resources.

Remote Bookkeeping: The Process

Once you have hired a remote bookkeeper, here’s how the professional start their work process:

Data Collection

The first course of action for a bookkeeper is to collect relevant information. To ensure expectations are met, you must provide the bookkeeper with clear expectations and objectives. Additionally, it is the responsibility of the current team to share all relevant financial information with the remote professional to get the work started.

Data Processing

Once all the data is collected, the online bookkeeper analyzes it to gauge the flow of money within the company. This process helps with further analysis and the necessary action plan.

Delivery Reports

The last step is to generate financial reports for the clients. The bookkeeper ensures that all transactions are accurately reported and makes recommendations to improve the company’s financial position.

Tasks Handled by a Remote Bookkeeper

A remote bookkeeper is responsible for various tasks that include:

1. Maintaining Financial Records

The primary duty of a remote bookkeeper is to maintain financial records in a timely manner. These tasks include:

• Recording financial transactions into the software
• Keeping the data updated and in compliance with relevant regulations
• Creating financial entries
• Sharing financial reports with clients to present the financial health of the company

2. Budgeting and Forecasting

By budgeting and forecasting, a virtual bookkeeper provides valuable insights that support businesses in making the right decision. Additionally, these professionals help companies equip themselves with the right financial resources to implement strategies and achieve goals.

3. Accounts Payable

A Remote bookkeeper automates bill payments and simplifies invoice processing to ensure financial obligations are accurately recorded and tracked. This also helps maintain sustainable relationships with suppliers and ensure smoother cash flow within the business.

4. Accounts Receivable

Handling accounts receivable also comes under a remote bookkeeper. Whether it is voice recording or tracking and managing payments, these professionals ensure that all financial transactions are executed promptly. Additionally, by maintaining the books accurately, they help.

5. General Ledger

General ledger accounts are the cornerstone of the bookkeeping system. A bookkeeper online is responsible for managing these accounts, including:

• Recording and maintaining financial transactions
• Accounts reconciliation
• Accurate categorization of expenses
• Recording credit card receipts

Software Used by Remote Bookkeeper

The right technology is the cornerstone of every reliable remote bookkeeping work. Here are the top 5 software commonly used by online bookkeepers:

Quickbooks

Quickbooks is a popular cloud accounting bookkeeping software developed to simplify bookkeeping online. The tool automates essential tasks such as bookkeeping, invoice management, payroll, expense tracking, bank reconciliation, tax management, and invoice management, Facilitating effective financial management.

2. Sage Accounting Software

Sage is another versatile software for a remote bookkeeper. It is designed with features such as payroll processing, inventory management, financial management, payroll processing, and seamless integration.

3. Zoho Books

Launched in 2011, Zoho Books is easy-to-use software for all bookkeeping services. It allows businesses to record transactions, bill customers, automate workflow, track time, and adhere to tax compliance in a central location. It has a suite of features to help businesses of all kinds and scales.

4. Xero Bookkeeping Software

Xero is robust software designed to manage bookkeeping, cash flow, and finances. It automates accounting tasks such as bank transaction reconciliation and invoice reminders. Moreover, it provides smart data, valuable insights, and customizable reports.

5. Oracle NetSuite

Oracle NetSuite is another robust software program designed to automate and streamline bookkeeping and other financial functions. It records transactions, manages payables and receivables, automates closing, offers quick access to financial data, and ensures regulatory compliance.

Challenges Faced in Setting up Remote Bookkeeping

While a remote bookkeeper could be an invaluable asset, there are some challenges in setting up bookkeeping online that must be addressed to ensure efficiency, security, and reliability:

Data Security

If a remote bookkeeper works from a different location than the company, data is likely to come through various channels, devices, and connections. This creates significant security concerns that must be addressed through the right measures.

Barriers in Communication

Another concern when hiring a virtual bookkeeper is the communication barrier. A lack of a proper communication system means information could be misinterpreted, resulting in financial errors and potential losses.

Technical Issues

The efficiency of a remote bookkeeper depends heavily on the technology the professional uses. Software incompatibility, technical glitches, and integration issues hamper the bookkeeping process.

Time Zone Differences

Working in different time zones is another challenge when setting up remote bookkeeping services. If you are not available to address clients’ concerns in a timely manner, this creates a communication gap.

Training and Onboarding

Every company operates differently, which is why training and onboarding are important parts of hiring any worker. If the online bookkeeper is not trained to explain how things work, issues could arise.

Tracking Productivity

Working in a remote system means you must be proactive with tracking and monitoring. How well is the remote bookkeeper working? Is the deadline being met? How efficient is the process? Lack of productivity tracking can delay the reporting and decision-making process.

Compliance Issues

Bookkeeping and accounting compliances differ by location. Is the remote bookkeeper experienced in working with jurisdictions? Failure to comply with relevant regulations could result in legal complications.

Steps to Set Up Remote Bookkeeping for Your Business

Ready to be a remote bookkeeper? Here are essential steps you should take care of while setting up virtual bookkeeping services:

Step 1: Start with a Strong Business Plan

A well-defined business plan is the foundation of starting any business. Your business plan should include:

• Business name and structure
• Target clients, competitors, and industry
• Strength, weaknesses, opportunities and threats
• Problems you aim to solve
• Cost-effectiveness of your services
• The available capital, projected cash flow, estimated expenses and gain
• Business growth plan
• Marketing strategy

Step 2: Get the Required Licenses and Permits

To start remote bookkeeping work, you must obtain the relevant permit and license. Depending on the type, you must register your business with the state to get the required identification. You must pay registration and license fees that vary depending on your location.

Step 3: Get the Right Resources

One of the biggest advantages of setting up a remote bookkeeping Australia is that you need limited hardware. A few well-performing laptops and powerful software are all you need to kick-start your business. Another key resource investment is a stable internet connection to ensure undisrupted work. Other resources you may need include a monitor, webcam, and headsets.

Step 4: Set Pricing

How much are you going to charge for your services? Pricing is tricky, especially when you are starting out in an already saturated market. Ensure you do thorough market research to understand how your competitors are pricing their services. Additionally, multiple price packages help attract businesses of all sizes and provide them with scalable options.

Step 5: Implement Data Security Measures

An increasing number of data breaches has made data security a primary concern for companies worldwide. Ensure you implement stringent data security measures and follow them with rigorous monitoring and tracking.

Step 6: Creative Marketing Strategy

How is your online presence? Are people able to reach out to you easily? This is where marketing comes into play. Analyse who your target audience is, their locations, what problem they are facing, and what solution you are offering. A clear and innovative marketing strategy is crucial to attract an audience and sustain your business.

Best Practices for a Remote Accounting and Bookkeeping Firm

After setting up your remote accounting and bookkeeping firm, the next important step is to sustain it with the right practices. Here are some of the best practices that will help you do the same:

Invest in the Right Software

Remote bookkeeping Australia heavily depends on technology; reliable internet is just one aspect. The right technology that aligns with your business needs is important to ensure efficiency in your operations. Reliable software automates a lot of manual work, making the process more accurate and effective. Additionally, invest in proper cloud storage to ensure all your data is stored securely in one place and can be easily shared with clients.

Proper Communication Systems

The need for a proper communication system cannot be overstated. Invest in the right communication tools, such as Gmail, Slack, Microsoft Teams, and Zoom, to ensure clients have an easy channel to reach you and your team. Along with the right tools, ensure transparent and honest communication with clients to keep everyone on the same page and organized.

Create a Structured Workflow

A well-structured workflow is critical to define your process for clients and team members. The former can gauge your work patterns and understand what is expected of them. Additionally, set clear expectations of deliverables from your team to avoid any delays. It makes your operations more systematic and easier for people to get on board.

Prioritise Security

Given the sensitive nature of financial data, implement robust security measures. This includes using secure passwords, enabling two-factor authentication, and regularly updating software to protect against vulnerabilities. Moreover, regular training sessions on cybersecurity best practices should be conducted. Ensure your team is aware of phishing scams, data breaches, and other potential threats to maintain a secure remote working environment.

Benefits of Hiring a Remote Bookkeeper

The benefits of hiring an online bookkeeper are multi-faceted. Let’s discuss some of the key advantages:

Easy Access to Experts

Hiring a remote worker gives you easy access to a wealth of knowledge and expertise. An online bookkeeper has experience in the field and stays updated with the latest developments in the industry. Outsourcing bookkeeping allows you to leverage the expertise of seasoned professionals without having to put heavy investment into training.

Cost-Saving Decision

A skilled virtual bookkeeper can save you a lot of time and money. When experts manage your online bookkeeping services Australia, you have time to focus on core operational activities. Additionally, when you don’t have to set up an in-house workplace, it saves costs related to infrastructure, salaries, benefits and other associated costs.

Boost in Productivity

Virtual bookkeeper provides accurate and efficient bookkeeping services, helping you boost productivity. You focus on business growth activity while experts manage your online bookkeeping. This segregation of work helps improve efficiency within the business and pave the way for economic growth.

Flexibility at its Best

Online bookkeepers allow you to scale the services up and down based on the requirements. Outsourcing also allows businesses to work with clients from different locations and time zones.

Additional Tips for Remote Bookkeeping

Track Time:

A time-tracking system helps you improve your time management. You can dedicate a certain period for a particular project and monitor the time it actually took to complete it. This will help you prioritize tasks and meet deadlines.

Backup your Data:

Data in the cloud is vulnerable and must be protected actively. Creating backups of files helps ensure important financial documents are never left behind, even in case of mishaps.

Customer Experience:

Customer experience plays an important role in the growth of a remote business. Ensure to check the reviews of a remote bookkeeper online to assess the experience of previous clients.

Save More, Do More With Smart Accounting!

Get customized plan that supports your growth

Explore Pricing!