By now, we know that the current coronavirus outbreak has impacted individuals and businesses
around the world. Yes, there are health-related concerns, but the overall toll on business economics
has also been devastating, particularly for small businesses and SMEs. More and more companies
are adopting the virtual working model and are using technological innovation to operate their
business. Be it for team collaboration, meetings, or even hiring, companies are relying more on
virtual platforms to get their work done.
With remote working and work from home being the new norm, many companies look to resort
their companies bookkeeping as well as their business accounting and taxation through Virtual
accounting. During the current outbreak, virtual accounting for start-ups has become crucial for
young entrepreneurs to keep track of all their financial transactions, control their business expenses,
as well as identify opportunities for growing their business.
As a start-up entrepreneur, you can grow your business through virtual accounting platforms which
is a one-stop online solution for accounting-related services, including legal, taxation, and other
advisory services. How does the virtual accounting platform work and benefit your start-up
business? Let’s look at that in the following sections.
What is Virtual Accounting?
In simple terms, virtual accounting is an online platform that allows qualified and experienced
accountants to offer their services to businesses remotely. Enabled by the Internet and online
collaboration skills, this platform typically consists of a team of virtual accountants offering online
accounting-related services instead of working at the client’s office.
Here’s how virtual accounting services can benefit your start-up business:
1. Lowers your business costs: Hiring a full-time accountant in Bangalore or any other
Indian city can be expensive as in addition to a monthly salary, you need to provide them
with provident fund and other employment benefits. With virtual accountants, you only
need to pay for the accounting services rendered by them. This is a major cost saver,
especially for SMEs who require accounting services but do not have the budget to hire
qualified and experienced accountants and bookkeepers.
2. Provides you with the latest financial data: Every business owner needs the latest
business and financial data, such as cash flow, inventory, received, and pending payments.
You need this updated data at any time to devise your best business decisions and strategies.
Now, you don’t have to wait for your financial data to be furnished by your accountant.
Virtual accounting services provide a real-time online dashboard 24-by-7 that can be
instantly used to view the financial data you are looking for. Additionally, you don’t need to
be an accounting or technology wizard to access these financial dashboards. They are easy
to use and can be managed by any user with basic computer skills.
3. Automates your entire accounting process: For small companies, having a full-time
accountant can mean a lot of office paperwork and even storing physical copies of your tax
returns from previous years. Additionally, depending on the preferences of your accounting
team, your financial and accounting data could be managed by diverse accounting and
Virtual accounting companies automate the accounting process by using the latest software
tools that are installed on any cloud platform and not on your local server. Additionally, they
store and share only digital copies of relevant financial documents that you can easily access
at any time.
With automated tools, you can also make electronic payments to your vendors and
employees, as well as generate electronic invoices. This eliminates the hassle of issuing
checks and simplifies the payment process.
4. Manages your taxes efficiently: Due to their inherent complications, paying your taxes is
a challenge for SMEs and start-ups. Plus, the risk of not paying your tax on time can be steep
penalties along with the damage to your business credibility.
Be it payroll or corporate taxes; virtual accountants are experienced to manage your
taxation virtually and calculate the right amount of tax that you should pay. As a business
owner, you can focus on growing your business and not concern yourself with tax deadlines
and taxation amounts. Additionally, you now have easy access to electronically stored tax
returns and other sensitive tax documents using a centralized dashboard.
5. Secures your financial and accounting data: For any company, their financial and
accounts-related data is very confidential and must not end up in the wrong hands. Through
the use of technologies like data encryption and multiple backups, virtual accounting firms
store your sensitive financial data on highly secure cloud storage that is protected from all
types of online threats.
This mode of storing financial data is much safer than storing them on local computers and
servers (that can be easily hacked) or on any physical office location.
COVID-19 pandemic has been an eye-opener for many businesses that are now adopting the remote
working culture. This is the best time to hire the services of a virtual accounting company that can
offer a wide range of accounting-related services.
Consider the various business benefits of outsourcing your accounting and taxation to cloud-based
virtual accounting firms. Let us know how we can help you.
Get in touch with us now!