The future of accounting is online, but many business owners hesitate to make that jump to virtual accounting. Even though the evidence shows that online bookkeeping can enhance productivity, improve efficiency and put you in greater control of your business, many professionals still have some hesitation about it. Let’s take a look at some common concerns regarding virtual accounting.
1. “I don’t know the bookkeeper or virtual accountant.”
Bookkeeping has always been a high-touch profession. In the past, even outsourced bookkeepers lived locally and would visit the offices of their clients to balance the books and review important financial statements. Many business owners feel uncomfortable with a virtual accounting professional they may never meet face to face.
Rest assured that there are benefits to this arrangement. It’s more efficient to handle meetings through email, Skype or even over the phone. You don’t have to take an entire day to meet with your virtual accounting team. That doesn’t mean you won’t get to know and trust your virtual accounting personnel, though. Virtual accounting can mean eliminating the small talk that often wastes so much time in business, getting more accomplished in less time.
2. “I’m concerned about cloud computing and the security of my data.”
This objection comes up less and less, as online banking, ecommerce and virtual accounting grow in popularity. But it still comes up every once in a while. If you have ever shopped online, then you’ve put sensitive financial data in the cloud. A trustworthy virtual accounting firm uses industry-leading SSL encryption to protect your data on its servers.
The server farm should be housed in a certified facility with the highest levels of security and protection required for a data center, which includes restricted access and continuously monitored surveillance. Your data is then protected physically as well as virtually. Enhanced security measures are important for any virtual accounting service.
3. “I will lose control of my business if I outsource bookkeeping services.”
Many clients report that they feel more in control of their business since turning to a virtual accounting service, not less. An online financial dashboard puts all your important financial statements right at your fingertips in an easy-to-read, easy-to-comprehend format with graphs and charts. You can access metrics for accounts receivable, accounts payable, income statements and balance sheets, as well as budgeting and forecasting reports. All of this information is updated and delivered daily, and then accessible in the cloud at any time, from any secure internet connection.
4. “How can I manage a virtual accounting team if they are not in my office where I can see them?”
This is a good one… even with the increase in telecommuting, some business owners and CEOs fear that if an employee is not in their sight, they are not working. Between 2005 and 2012, telecommuting has grown in popularity by 79.7%, according to a survey done by Global Workplace Analytics and the Telework Research Network. Clearly, a lot of managers are beginning to understand that employees who work from home get as much (if not more) done than in-house employees, and there is also cost savings involved.
The right virtual accounting team for your business has specific processes and procedures, outlined in a Client Procedures Manual, along with a Service Level Agreement, that ensures the virtual accounting firm will provide deliverables on-time and in the preferred format. We hire only virtual accountants who can be at their desks, uninterrupted, from 8:30 to 4:30 (with breaks, of course).
You’re right… you won’t be able to “manage” your virtual bookkeepers (or maybe we should say “micro-manage”) constantly. That’s the point. You don’t have to stand over their shoulders making sure things get done, because they are bound by contract to provide the virtual accounting services you need, on time, every time.
