What Working With a Virtual Bookkeeper Actually Looks Like
Updated: Oct 24
When you think about hiring a bookkeeper, you might picture someone sitting in an office, sorting through receipts, entering transactions, and preparing financial reports.
But bookkeeping doesn't need to happen in the same physical location as your business.
With today's accounting technology, a professional bookkeeper can work remotely while maintaining accurate financial records and communicating with you throughout the process.
For growing small businesses, virtual bookkeeping offers a practical way to receive ongoing bookkeeping support without needing an in-house bookkeeper.
So what does working with a virtual bookkeeper actually look like?
What Is Virtual Bookkeeping?
Virtual bookkeeping means your financial records are maintained remotely using cloud-based accounting software and secure online tools.
Rather than exchanging paper files or meeting in person to review transactions, you and your bookkeeper can share information electronically.
Depending on the business and the engagement, this may involve:
Cloud-based accounting software such as QuickBooks Online
Secure document-sharing tools
Digital receipts and invoices
Online communication and meetings
Bank feeds and other accounting integrations
These tools make remote collaboration possible, but they don't replace professional bookkeeping work.
Transactions still need to be reviewed, accounts reconciled, and financial information checked for accuracy.
Virtual bookkeeping changes where the work happens, not the importance of doing it properly.
What Does a Virtual Bookkeeper Actually Do?
A virtual bookkeeper performs many of the same responsibilities as a bookkeeper working on-site.
Depending on the agreed scope of services, those responsibilities may include:
Recording and categorizing financial transactions
Reconciling bank and credit card accounts
Reviewing accounts receivable and accounts payable
Tracking applicable sales taxes
Identifying missing transactions or unusual balances
Organizing supporting documentation
Preparing financial reports
Maintaining records for year-end accounting and tax preparation
The exact responsibilities depend on your business's needs and the services included in your engagement.
For example, some businesses manage their own invoicing and bill payments while their bookkeeper focuses on reviewing transactions, reconciling accounts, and maintaining financial records.
Others may require a broader range of ongoing bookkeeping support.
The important part is having clearly defined responsibilities and consistent processes.
How Does Working With a Virtual Bookkeeper Begin?
A good bookkeeping relationship starts with understanding your business and the condition of its financial records.
At Golden Star Bookkeeping, we follow a structured process before beginning monthly bookkeeping services.
1. Initial inquiry
The process begins when a business owner completes our Get Started form.
This gives us an opportunity to learn about the business, its current bookkeeping arrangements, and the type of support it may need.
2. Discovery Call
After reviewing the inquiry, we may invite the business owner to a Discovery Call if the business appears to be a good fit.
The conversation helps us understand the business's needs, current challenges, and expectations.
It also gives the business owner an opportunity to ask questions about how we work.
3. Paid Diagnostic Review
Before recommending monthly bookkeeping or cleanup services, new clients begin with a paid Diagnostic Review.
This involves examining the existing bookkeeping records to identify issues that may affect their accuracy and reliability.
For example, the review may identify unreconciled accounts, unusual balances, missing information, or transactions that require further investigation.
The purpose is to understand the condition of the records before determining the appropriate scope of work.
4. Findings and recommendations
Once the Diagnostic Review is complete, we discuss the findings with the business owner.
Depending on the condition of the records, the next step may involve a separate cleanup project, ongoing monthly bookkeeping, or other recommendations.
This helps establish a clearer understanding of the work required before moving forward.
5. Engagement and onboarding
Once the services and scope have been agreed upon, onboarding begins.
This includes arranging appropriate access to accounting systems, establishing document-sharing procedures, confirming responsibilities, and setting communication expectations.
The goal is to create an organized working relationship from the beginning.
What Happens During a Typical Month?
Once monthly bookkeeping services are established, the work generally follows a recurring process.
The exact activities and timing depend on the engagement, but a typical monthly cycle may include the following.
Reviewing financial transactions
Transactions recorded in the accounting system are reviewed and categorized.
This may involve checking income, expenses, transfers, and other activity to ensure transactions are recorded appropriately.
Reconciling accounts
Bank and credit card accounts are reconciled against their statements.
Reconciliation helps identify missing transactions, duplicates, errors, and other discrepancies that may affect the accuracy of the records.
Following up on missing information
Some transactions require additional information before they can be recorded accurately.
Your bookkeeper may request receipts, invoices, explanations, or other supporting documentation.
Providing this information promptly helps keep the bookkeeping process moving.
Reviewing financial information
Once transactions are recorded and accounts are reconciled, the bookkeeper may review balances and financial reports for inconsistencies or items requiring attention.
Depending on the engagement, reports such as the Profit & Loss Statement and Balance Sheet may be prepared as part of the monthly process.
Preparing for the next period
An organized monthly process helps maintain continuity between reporting periods.
It also supports year-end accounting, tax preparation, and other financial reporting requirements.
The objective is not simply to have transactions entered, but to maintain financial records that are accurate, organized, and useful.
What Is Your Responsibility as the Business Owner?
Virtual bookkeeping doesn't mean handing over every financial responsibility.
Even when a professional bookkeeper manages the day-to-day bookkeeping work, the business owner remains an important part of the process.
Depending on the engagement, you may be responsible for:
Providing bank statements and supporting documents when required
Submitting receipts and invoices
Answering questions about transactions
Communicating changes in business operations
Reviewing information or reports when requested
Approving payments or other transactions that remain under your control
Your bookkeeper can help maintain the financial records, but you remain responsible for operating the business and making its financial decisions.
A successful working relationship depends on clear communication and cooperation from both sides.
How Do You Communicate With a Virtual Bookkeeper?
Because the relationship is remote, communication is an important part of the process.
Rather than relying on informal conversations in an office, information is generally exchanged through agreed communication channels.
This may include email, secure client requests, document-sharing tools, or scheduled online meetings.
At the beginning of an engagement, it's helpful to establish:
How documents and information will be shared
How questions and missing information will be handled
Who is responsible for providing or approving specific items
Expected communication and response timelines
When meetings or financial reviews may be appropriate
Clear expectations help reduce confusion and keep the bookkeeping process organized.
Is Virtual Bookkeeping Secure?
Working remotely doesn't automatically make bookkeeping less secure.
However, security depends on the systems and practices used by both the bookkeeper and the business owner.
Cloud accounting platforms and secure document-sharing tools can provide controlled access to financial information.
Good practices may include:
Using individual user accounts rather than shared passwords
Enabling multi-factor authentication
Assigning appropriate access permissions
Sharing sensitive documents through approved channels
Reviewing user access when responsibilities change
Keeping devices and software updated
Business owners also play a role in protecting their financial information by following agreed security procedures.
The goal is to maintain appropriate access and safeguards while allowing the bookkeeping work to be completed efficiently.
What Are the Benefits of Virtual Bookkeeping?
For many growing businesses, virtual bookkeeping can offer several practical advantages.
Access to professional bookkeeping support
A business can work with an experienced bookkeeper without needing that professional to be physically present in its office.
Consistent financial recordkeeping
An established bookkeeping process can help keep transactions, reconciliations, and supporting records organized throughout the year.
Easier access to financial information
Cloud accounting software allows authorized users to access financial information without relying on paper records or a single office computer.
However, the usefulness of that information still depends on the accuracy and completeness of the bookkeeping.
Support as the business grows
As transaction volume and financial requirements change, the bookkeeping scope can be reviewed to determine whether additional support is needed.
Better preparation for year-end
Maintaining accurate records throughout the year can make it easier to identify outstanding issues and provide organized information to your accountant.
Virtual bookkeeping isn't necessarily the right arrangement for every business, but it can be an effective option when the systems, responsibilities, and communication processes are well established.
How Do You Know Whether Virtual Bookkeeping Is Right for Your Business?
Virtual bookkeeping may be a good fit if:
Your business uses, or is willing to use, cloud-based accounting software
You are comfortable sharing documents electronically
You want professional support maintaining your financial records
You can provide information and respond to bookkeeping questions when needed
You prefer a structured, ongoing bookkeeping process
Your business doesn't require a bookkeeper to be physically present
Before choosing a provider, make sure you understand which services are included, how communication works, and what responsibilities remain with your business.
Final Thoughts
Working with a virtual bookkeeper is about more than using accounting software remotely.
It's about establishing a reliable process for maintaining financial records, reviewing transactions, reconciling accounts, and communicating about the information needed to keep your bookkeeping accurate.
Technology makes the collaboration possible. Clear responsibilities and consistent bookkeeping practices make the relationship effective.
At Golden Star Bookkeeping, we work with growing incorporated businesses in British Columbia that want accurate financial records and a clearer understanding of their numbers.
New clients begin with a paid Diagnostic Review so we can assess the existing records before recommending the appropriate next steps.
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