Remote bookkeeping services and traditional bookkeeping services are the same in nature, but there is a slight difference between them. Many organizations now prefer Remote Bookkeeping Services over Traditional Bookkeeping Services. The reason behind this is the several benefits that come along with Remote Bookkeeping Services. Read below to learn more about this topic.
Remote Bookkeeping Services
Remote bookkeeping services refer to professional bookkeeping services that are provided remotely, typically through the internet and other digital platforms. The services are typically provided by a team of experienced bookkeepers who work remotely to manage clients’ financial transactions, record keeping, and financial reporting.
Remote Bookkeeping brought evolution and convenience to the field of accounting and bookkeeping. Bookkeeping is a crucial task that requires a great deal of time and attention. The automation system, cloud service, and other available resources have made it a lot easier than before. Businesses do not need to spend their time worrying about their business’ financial management.
These services can include tasks such as data entry, bank reconciliation, accounts payable and receivable, payroll management, and tax preparation, among others. The primary benefit of remote bookkeeping services is that they provide businesses with access to professional financial management services at a lower cost compared to hiring in-house staff, with the added flexibility of remote access.
Working with a remote or virtual bookkeeper is quite similar to hiring an on-site third-party bookkeeper or doing traditional in-house bookkeeping. The distinction is that these services can be performed from any location in the world. Depending on the circumstances, a remote bookkeeper may remain working for a business as an employee, or the company may outsource their services. They carry out the same duties as conventional bookkeepers, such as:
- Reconciliation of accounts
- Financial reporting
- Payroll
- Bill payments
Traditional Bookkeeping Services
Traditional bookkeeping services refer to the practice of maintaining a company’s financial records and transactions in a manual or physical format, such as paper ledger books or spreadsheets. This was the standard method of bookkeeping before the widespread adoption of digital technology and software.
Under traditional bookkeeping, an in-house team of bookkeepers and accountants is hired by a firm for their bookkeeping. This method was used for a long time by almost every business. It required a lot of labor which led to many disadvantages.
Traditional bookkeeping services include tasks such as recording transactions, preparing invoices and financial statements, reconciling bank statements, and managing accounts payable and receivable. The bookkeeper is responsible for maintaining accurate and up-to-date records of all financial transactions and ensuring that all financial reports are following relevant accounting standards and tax laws.
Today, many businesses have transitioned from traditional bookkeeping to digital or cloud-based bookkeeping, which offers several advantages over traditional methods, such as increased accuracy, efficiency, and accessibility. However, some businesses still choose to use traditional bookkeeping methods, especially those with low-volume transactions or limited access to technology.
Over the years, businesses have preferred remote bookkeeping services over traditional bookkeeping services. There are many reasons behind this switch. Though the niche of both services is the same, there are slight and noticeable changes that make a significant impact. Read below to understand these differences a little bit more.
Remote Bookkeeping Vs Traditional Bookkeeping
| REMOTE BOOKKEEPING SERVICES | TRADITIONAL BOOKKEEPING SERVICES |
|---|---|
| Remote bookkeeping services can be provided from anywhere in the world. The service provider and the service beneficiary do not need to be in the same location. | As traditional bookkeeping services are in-house bookkeeping services, it is important that both parties are at the same location during the service period. |
| Under remote bookkeeping services, several types of online software are used to perform the tasks under bookkeeping, which enhances the accuracy of the data. | Unlike remote bookkeeping services, traditional bookkeeping involves the manual process of data entry which is risky. There are high chances of errors or mistakes incurring which may affect the process further. |
| The entire process of remote bookkeeping is done online. This implies you can save all your data on cloud storage which will be a backup in case you lose your original files. | As traditional bookkeeping is a manual process, there is a lot of paperwork involved. It is next to impossible to have a backup for all the records unless you make a copy of every single piece of paper involved in the process, which can be time-consuming. |
| Due to the usage of software and advanced technology, the process of remote bookkeeping is highly timesaving. | As a lot of labor is required, the process of traditional bookkeeping is tedious and time-consuming. |
| If a firm is using remote bookkeeping services for its business’ financial management, it has the benefit of data security, as access to data is limited and can be controlled by the owner. | There is no data security when it comes to traditional bookkeeping. The access to data is unprotected, cannot be tracked, and is not limited. By choosing the traditional method, a company will be risking all its confidential records. |
| Remote bookkeeping brings convenience to its users and makes financial management easy. | Bookkeeping is a long and hectic traditional process. It also needs a lot of focus to avoid errors. |
| Remote bookkeeping services are very reasonable and affordable. Every size of business can hire these services easily, as they are cost-effective. | Hiring a team of bookkeepers and accountants can be expensive and requires skilled budgeting. |
Businesses often choose Remote Bookkeeping Services because of the numerous benefits. Remote bookkeepers are accessible around-the-clock, unlike a staff that works in your office from nine to five. As a result, they will be accessible and there to assist you whenever you need them. Since an internal staff will not always be available to you, remote bookkeepers are more practical. Since you will not have to pay for overhead fees or train them, remote bookkeepers are also more productive and cost-efficient. They are thus fantastic long-term investments over the long term.
Hiring a remote bookkeeper typically indicates that they are prepared to go to work right away. You will not have to worry about training or hiring expenditures because remote bookkeepers are already competent. Businesses are always looking for ways to improve workflow and efficiency. But most importantly, every business must maintain low expenses and great output. Therefore, it is important to identify measures to maintain a corporation operating as efficiently and successfully as feasible.
Thanks to remote bookkeeping, businesses can operate effectively without ignoring their financial responsibilities. If you are wanting to improve your finance department, hiring a remote bookkeeper can be the solution.