What is a virtual accountant?

Virtual accountants are accountants who work online instead of in an office. They use cloud accounting software as well as mobile apps to provide a variety of accounting services for small businesses and self-employed people, including:

• Bookkeeping services
• Services for bill pay
• Accounts payable and accounts receivable
• Preparing financial statements and financial reports
• Services for tax filing
• Virtual CFO Services
• Cash flow forecast
• Business Process Advice
• Payroll services

What does it take to become a virtual accountant?

Your services will determine the qualifications you need to be a virtual accountant. If you intend to provide basic bookkeeping services, you don’t necessarily need a college degree or professional certifications–relevant experience and knowledge of accounting and bookkeeping principles are enough

However, to be able to offer higher-level services such as representing clients in an audit by the IRS, another tax authority, auditing financial reports, or outsourced CFO services you will need a college education and a designation.

How do virtual accountants work with clients?

Virtual accountants often have an office in their home, but they can work from anywhere with an internet connection and a mobile device or laptop.

Virtual bookkeepers can communicate with accountants via email, phone, or video conference using messaging platforms such as Slack and Microsoft Teams.

They work together and manage bookkeeping, tax preparation, as well as other services that are offered by cloud-based software. They often send and receive documents via secure online portals.

The benefits of starting a virtual accounting firm

Although virtual accounting is not for everyone, there are many benefits.

LOW OVERHEAD FEES

It is costly to rent, furnish, and maintain office space. You can work remotely as a virtual accountant to cut down on costs. Although you may need to spend more on security and technology than a traditional brick-and-mortar location, it is usually cheaper to give up office space and the monthly costs that go with it.

NO COMMUTE

It can take up to an hour depending on where you live. You can work remotely as a virtual accountant from anywhere you like, including your hotel room, coworking space, or coffee shop. You can work from wherever you are so that you don’t have to commute to the office or drive to a client’s place of business.

Low Start-up Costs

Virtual accounting offices can be much cheaper to start than local accountants. Starter Story estimates that the average startup price for an accounting firm is $19 815. However, this includes many expenses that virtual bookkeeping offices do not have to worry about such as renting, building, or decorating an office space.

How to become a virtual accountant?

These are the steps you need to take to get your online business up and running. There are many legal and licensing requirements that may apply to your business. Talk with your advisor or attorney about your plans.

• Determine your niche and offer the services that you will offer. Start by offering a few services to a niche client and then expand your offerings as you become more established.
• Register your business with the state and local governments.
• Investing in technology. You’ll need a computer or laptop, cloud accounting software, and a secure portal to send and receive documents and financial reports. Zoom and Microsoft Teams are collaboration tools that allow remote clients to meet face-to-face. You may wish to subscribe to tools to help you schedule appointments, manage projects, run your payroll, track time, and many other things as your business grows.