Working with a virtual bookkeeper can make it easier to keep your financial records organized without adding an in-house employee. But successful remote bookkeeping requires more than giving someone access to your accounting software and waiting for the books to be updated.
A productive relationship starts with clear expectations. You need to know what your virtual bookkeeper will handle, how you will communicate, when reports will be delivered, and how financial information will be shared securely. Your bookkeeper also needs timely access to the records and information required to complete the work accurately.
From choosing the right provider to handling communication issues, this guide explains how to build a productive virtual bookkeeping relationship.
Who Is a Virtual Bookkeeper?
A virtual bookkeeper is a bookkeeping professional who provides bookkeeping services remotely instead of working from your physical office. They typically use cloud-based accounting software, digital document-sharing tools, email, video meetings, and other online platforms to manage financial records.
The work itself is still bookkeeping. The main difference is that the bookkeeper performs the work remotely.
A virtual bookkeeper may help with:
- Recording and categorizing financial transactions
- Reconciling bank and credit card accounts
- Tracking income and expenses
- Managing accounts payable
- Tracking accounts receivable
- Organizing receipts and invoices
- Maintaining bookkeeping records
- Preparing financial reports
- Cleaning up historical bookkeeping records
- Providing payroll-related bookkeeping support when included in the agreement
The exact services depend on the provider and your business requirements. Some businesses only need monthly bookkeeping, while others may require weekly transaction management and regular financial reporting.
How Virtual Bookkeeping Works
A typical virtual bookkeeping arrangement involves several basic steps:
| Step | What Happens |
| 1. Discuss your needs | You explain your business, bookkeeping requirements, accounting software, transaction volume, and reporting needs. |
| 2. Define responsibilities | You and the bookkeeper agree on services, deadlines, communication, and pricing. |
| 3. Provide access | The bookkeeper receives appropriate access to accounting software and relevant financial records. |
| 4. Share documents | Receipts, invoices, statements, and other required information are provided through an agreed system. |
| 5. Complete bookkeeping | The bookkeeper records transactions, reconciles accounts, and performs the agreed tasks. |
| 6. Review the results | You review reports, ask questions, and discuss anything that requires clarification. |
Because the relationship is remote, establishing a consistent process from the beginning is particularly important.
What to Prepare Before Hiring a Virtual Bookkeeper
Before contacting a virtual bookkeeper, take some time to understand what your business actually needs. A clear scope of work makes it easier to compare candidates and establish expectations from the beginning.
Identify Your Bookkeeping Needs
Start by listing the financial tasks you want the bookkeeper to handle. Depending on your business, this may include:
- Recording income and expenses
- Categorizing transactions
- Reconciling bank and credit card accounts
- Managing accounts payable
- Tracking accounts receivable
- Preparing financial statements
- Cleaning up historical bookkeeping records
- Maintaining the chart of accounts
- Managing invoices and payments
- Preparing information for tax professionals
- Handling payroll-related bookkeeping tasks
You may not need every service. Defining your requirements first helps you find a virtual bookkeeper whose experience matches your business.
Organize Your Financial Records
A virtual bookkeeper can work more efficiently when your records are accessible and organized. Before the engagement begins, gather relevant documents and account information.
Depending on your setup, this could include bank statements, credit card statements, invoices, receipts, previous financial reports, payroll records, loan information, and accounting software access.
If your books contain errors or unreconciled transactions, let the bookkeeper know. Hiding bookkeeping problems can create unnecessary confusion later.
Define the Scope of Work
One of the most important pre-hire steps is deciding exactly what the bookkeeper will and will not handle.
For example, you might expect the bookkeeper to reconcile accounts and prepare monthly reports, while your CPA handles tax preparation. Another business may need the bookkeeper to manage invoicing and accounts payable as well.
Put these responsibilities in writing so both sides understand the arrangement.
Establish Access and Security Requirements
Remote bookkeeping requires digital access to financial information. Before providing access, determine how accounts will be protected.
Ideally, use individual user accounts and appropriate permissions rather than sharing your primary passwords. Access should be limited to the information required for the bookkeeper’s responsibilities.
Ask how the bookkeeper protects client information, communicates sensitive documents, stores files, and handles account access when the engagement ends.
Questions to Ask a Virtual Bookkeeper Before Hiring
The right questions can reveal whether a virtual bookkeeper is a good fit for your business. Do not focus only on pricing. Experience, communication, technology, availability, and working processes can have an equally significant impact on the relationship.
Consider asking:
What types of businesses do you work with?
A bookkeeper who understands your industry may already be familiar with common transactions, reporting requirements, and bookkeeping challenges associated with your business model.
Which accounting software do you use?
Confirm that the bookkeeper has experience with the accounting platform your business uses. If you use QuickBooks Online, for example, ask about their experience with the platform and the types of bookkeeping tasks they routinely perform.
What services are included?
Ask for a clear explanation of the services included in the engagement. Determine whether tasks such as reconciliation, reporting, accounts receivable, accounts payable, and cleanup work are included or billed separately.
How often will you communicate with me?
Communication expectations should be established before work begins. Ask whether you will receive weekly updates, monthly reports, scheduled calls, or communication only when an issue requires your attention.
What is your typical response time?
A virtual relationship depends heavily on digital communication. Ask how quickly you can normally expect a response to routine questions and how urgent financial issues are handled.
How do you protect financial information?
Ask about account permissions, secure file sharing, authentication, password practices, and other safeguards used to protect financial data.
Who will actually work on my books?
If you are hiring through a bookkeeping service, find out whether your account will be managed by one person or a team. Ask who your primary contact will be and who can step in if that person is unavailable.
What happens if there is a bookkeeping error?
Mistakes can happen in any bookkeeping arrangement. Ask how errors are identified, corrected, communicated, and documented.
These conversations can prevent many problems before the engagement starts.
Benefits of Working With a Virtual Bookkeeper?
A virtual bookkeeper can provide several practical benefits, particularly for small and growing businesses that do not need a full-time in-house bookkeeping employee.
Saves Time
Routine bookkeeping can consume considerable time when business owners try to manage it themselves. Outsourcing these responsibilities allows you to spend more time on customers, operations, employees, and business development.
Provides Professional Bookkeeping Support
A virtual bookkeeper can bring experience with accounting software, reconciliations, financial records, and bookkeeping procedures. Depending on the provider, you may also gain access to professionals who have worked with businesses in different industries.
Offers Flexible Support
Not every business needs a full-time bookkeeper. A virtual arrangement can provide bookkeeping support based on your actual needs and the services included in your agreement.
Helps Keep Financial Records Organized
Consistent bookkeeping can make it easier to understand your business’s financial position. Regular transaction recording and account reconciliation can also help identify discrepancies sooner.
Provides Financial Reports for Review
Depending on the service, a virtual bookkeeper may prepare financial statements and other reports that help you monitor business performance.
The reports can give you a clearer view of income, expenses, assets, liabilities, receivables, and other financial information.
Reduces the Administrative Burden
Delegating routine bookkeeping can reduce the amount of financial administration handled by the business owner. Instead of spending time sorting transactions and reconciling accounts, you can focus on reviewing the results and making business decisions.
What Services Does a Virtual Bookkeeper Provide?
The services provided by a virtual bookkeeper vary. Before hiring someone, make sure you understand exactly what is included.
Common services include:
- Transaction recording: Recording and categorizing business income and expenses.
- Bank reconciliation: Comparing accounting records with bank statements and identifying discrepancies.
- Credit card reconciliation: Reviewing credit card activity and ensuring transactions are properly recorded.
- Accounts payable: Tracking bills and amounts owed to vendors.
- Accounts receivable: Tracking customer invoices and outstanding payments.
- Expense tracking: Organizing business expenses into appropriate categories.
- Financial reporting: Preparing agreed-upon financial statements and reports.
- Bookkeeping cleanup: Reviewing and correcting historical bookkeeping issues.
- Payroll bookkeeping: Recording payroll-related financial information when included in the service.
- Document organization: Maintaining receipts, invoices, statements, and other supporting records.
How to Choose the Right Virtual Bookkeeper
Choosing the right virtual bookkeeper requires more than comparing service prices. You need someone whose skills, availability, communication style, and processes fit your business.
Consider these factors before making a decision:
Experience and Industry Knowledge
Ask how long the bookkeeper has been providing bookkeeping services and whether they have worked with businesses similar to yours.
Industry experience can help because the bookkeeper may already understand common transactions, financial workflows, and bookkeeping challenges in your industry.
Accounting Software Experience
Make sure the bookkeeper has experience with the accounting software you use.
If your company uses QuickBooks Online, for example, ask about the bookkeeper’s experience with the platform and the specific features you rely on.
Communication
Effective virtual bookkeeper communication should be discussed before work begins. You do not necessarily need to communicate with your bookkeeper every day. What matters is having a schedule that matches your business needs.
Security Practices
Your bookkeeper may need access to sensitive financial information. Ask how financial records are stored, shared, and protected.
You should also understand what account permissions are required. Provide only the access necessary for the agreed bookkeeping responsibilities.
Availability
A bookkeeper’s availability should match your expectations. If you need weekly updates but the provider only communicates monthly, the arrangement may not be a good fit.
Scope and Pricing
Make sure you understand what the regular fee covers. Ask how additional bookkeeping work, cleanup projects, urgent requests, or expanded responsibilities are handled.
Virtual Bookkeeping Best Practices for a Smooth Relationship
Once the engagement begins, consistent processes can make remote collaboration significantly easier.
Keep Financial Documents Organized
Create a predictable structure for invoices, receipts, statements, and other documents. Avoid sending important records through scattered emails or messages whenever possible.
A centralized system makes it easier for the bookkeeper to locate information and reduces the chance that documents will be overlooked.
Provide Information on Time
A bookkeeper can only work with the information available to them. If bank statements, receipts, invoices, or transaction details arrive late, the bookkeeping process may also be delayed.
Establish a deadline for submitting documents and make it part of your regular workflow.
Respond to Questions Clearly
Bookkeepers may need clarification about unusual transactions. Instead of replying with a vague answer, provide enough context to allow the transaction to be categorized correctly.
For example, explain whether a large payment was for equipment, inventory, professional services, or another business purpose.
Review Reports Regularly
Do not wait until tax season to look at your books.
Regularly reviewing financial statements can help you identify unusual expenses, missing income, incorrect classifications, and other issues while they are still easier to correct.
Document Important Decisions
If you decide to change how a particular transaction should be categorized or how a recurring expense should be handled, document the decision.
This gives both you and your bookkeeper a reference point and promotes consistency in future bookkeeping.
Remote Bookkeeper Relationship Tips for Better Collaboration
A virtual bookkeeping relationship works best when responsibilities are shared rather than treated as a one-way service.
Give Constructive Feedback
If a report does not meet your expectations, explain what needs to change. Specific feedback is much more useful than simply saying that something is not right.
Avoid Last-Minute Requests When Possible
Urgent requests are sometimes unavoidable, but repeatedly sending last-minute tasks can disrupt the bookkeeping workflow.
Give your bookkeeper reasonable notice when you need additional reports, historical cleanup, or other work outside the normal schedule.
Respect Time Zones and Working Hours
Remote bookkeepers may work from a different location or time zone. Agree on normal working hours and expected communication windows.
This prevents frustration when a message sent late in the day does not receive an immediate response.
Schedule Regular Reviews
A short monthly or quarterly review can help both sides discuss what is working, what needs improvement, and whether the bookkeeping scope has changed.
Your business may grow, add employees, open new accounts, or introduce new revenue streams. Your bookkeeping arrangement should evolve accordingly.
Conclusion
Working with a virtual bookkeeper can give your business professional bookkeeping support without requiring the bookkeeper to work from your physical office. However, the success of the arrangement depends on more than hiring the right person.
Start by understanding what services you need and asking the right questions to ask a virtual bookkeeper. Then establish clear responsibilities, communication expectations, deadlines, and security practices.
Good virtual bookkeeping best practices and consistent virtual bookkeeper communication can make remote collaboration much easier. Clear expectations, regular communication, and practical remote bookkeeper relationship tips can help you build a productive working relationship that continues to support your business as it grows.
FAQs
How do I set up a good working relationship with a virtual bookkeeper?
Start by clearly defining the bookkeeper’s responsibilities, deadlines, communication methods, reporting schedule, and access requirements. Provide financial documents on time and schedule regular reviews. Open communication and clear expectations can help prevent misunderstandings.
What should I expect in terms of communication from a virtual bookkeeper?
You should agree on communication channels, update frequency, and response expectations at the beginning of the relationship. Depending on your needs, you may receive weekly updates, monthly reports, scheduled calls, or messages when the bookkeeper needs additional information.
Is it safe to share my financial data with a remote bookkeeper?
It can be managed securely when appropriate safeguards are used. Ask how the bookkeeper protects financial information, how documents are shared, and what account permissions they need. Provide only the access required for their responsibilities and use secure methods for sharing sensitive information.
How often should I hear from my virtual bookkeeper?
The right frequency depends on your business and the agreement with your bookkeeper. A business with frequent transactions may benefit from weekly communication, while a smaller business may only need monthly updates. Establish the schedule before work begins.
My virtual bookkeeper is slow to respond, is that normal?
A virtual bookkeeper may not respond immediately, particularly if you have agreed on specific working hours or response times. However, consistently delayed responses can become a problem if they affect your bookkeeping or business operations. Discuss the issue directly, review your communication expectations, and agree on a reasonable response time.
