Virtual bookkeeping services use cloud accounting software and remote communication to deliver bookkeeping services that previously required an in-house employee or local firm. For most small businesses with revenue under $5M, virtual bookkeeping is the most cost-effective way to maintain professional financial records.
What Virtual Bookkeepers Do
A virtual bookkeeping service handles the same core functions as an in-house bookkeeper: categorizing transactions, reconciling bank and credit card accounts, managing accounts receivable and payable, producing monthly financial statements, and coordinating with your accountant or CPA for tax preparation. The difference is that all of this happens remotely through cloud tools.
Cost Comparison
An in-house bookkeeper in a major metro area typically costs $40,000-$65,000 in salary plus benefits. A virtual bookkeeping service providing the same outputs typically costs $200-$800 per month depending on the volume of transactions. For most businesses under $3M in revenue, the virtual option is dramatically more cost-effective.
Key Takeaways
- Virtual bookkeeping delivers the same outputs as an in-house bookkeeper at 70-90% lower cost for most small businesses.
- The transition to a virtual service is straightforward if you are already using cloud accounting software.
- Look for services that use your preferred platform (QuickBooks, Xero) rather than forcing a migration.
