A virtual bookkeeper is a specialized professional who works from home rather than in a traditional office setting. He is a freelancer who uses software programs, database sharing, e-mail, and faxes to provide a full range of general accounting and bookkeeping services to his clients. Home offices are frequently the only physical location where a company operates.
A virtual bookkeeper, like a traditional bookkeeper, is likely to be knowledgeable in a wide range of accounting applications. He is typically skilled in accounts payable, accounts receivable, account reconciliation, and payroll processing. Maintaining general ledgers and other transaction records is a common part of his job.
A virtual bookkeeper often has access to and knowledge of a variety of accounting software in addition to a thorough understanding of bookkeeping and accounting principles. Some software programs are accounting systems that track income and expenses and print checks. Advanced programs can calculate job costs, manage projects, and work with spreadsheet or word processing software.
An electronic scanning device that scans, categorizes, and saves business receipts, business cards, and important letters and documents is becoming increasingly popular among virtual bookkeepers. Local and regional regulatory agencies have approved most of these devices as being so accurate that original receipts and documents can be discarded after they have been scanned and saved. This cuts down on the amount of space a virtual bookkeeper needs to run his business and serve multiple clients at the same time.
A person in this field is frequently called upon to provide ancillary services that are specific to the industries in which his clients operate. Small independent retail and wholesale businesses, for example, frequently require him to track purchase orders and keep copies of customer invoices. Vendors and manufacturer’s representatives may also request that the bookkeeper process credit applications and check references. Clients may also ask him to prepare year-end reports or provide employees with W-9 or 1099 tax documents.
A high school diploma is usually required to work as a virtual bookkeeper, but an associate’s or bachelor’s degree in business, accounting, or a related field can help an aspiring candidate get a better job. Excellent math skills are typically required to be successful as a virtual bookkeeper. In this position, having a high level of organization and excellent attention to detail are advantageous. Because a virtual bookkeeper usually works alone, being self-motivated and focused is usually necessary for success. Because of the nature of the information that the virtual bookkeeper’s clients are required to share with him on a regular basis, dependability, integrity, and discretion are normally highly regarded traits.