Outsourced Bookkeeping Vs Virtual Bookkeeping Services

The struggle is real: CPA firms are constantly trying to balance costs and benefits amid the competitive environment. The talent shortage in the accounting world continues to have a significant impact on almost every firm. The growing pressure that staffing woes exert on the accounting industry is keenly felt as CPA firms try to build a positive work environment and minimize burnout alongside retaining the best candidates. CPAs prefer taking up lucrative jobs, mostly with outsourced bookkeeping services and sometimes with virtual bookkeeping services companies that pay well as well as help them upskill. While the best talents are swept away by giant firms, the smaller ones and startups combat the skills shortage war.

The global pandemic has completely changed the face of industries, including the accounting sector, and firms are now dealing with layoffs while accountants are suffering from unemployment and other adversities. Moreover, accounting firms are constantly looking to cut expenses in several creative ways without compromising the quality of services. With the rise of remote-only and hybrid workspaces, the line between outsourced, on-site, and virtual bookkeeping services has become less distinct.

Outsourcing is one of the most effective ways accounting firms can reduce expenses. The increasing demand for solutions such as outsourced bookkeeping services and the convenience of the internet has led to a variety of options to solve talent shortage problems in the accounting industry. When it comes to bookkeeping services, there are virtual bookkeeping services and outsourced bookkeeping services.

Today, outsourced bookkeepers can offer the same support as onsite bookkeepers- with better availability, quicker turnaround times, and real-time reportage. Even though both involve remote work, there are key differences between the two, and one of them could add greater value to your CPA firm. Read on to find out.

VIRTUAL BOOKKEEPING SERVICES VERSUS OUTSOURCED BOOKKEEPING SERVICES

When referencing bookkeeping services, the terms “virtual” and “outsourced” are often used interchangeably. Despite having a few things in common, they are pretty different from one another. It is imperative to note and understand the underlying differences.

What are Virtual Bookkeeping Services?

Virtual bookkeeping, a.k.a. cloud bookkeeping, is a generic way of referring to services that are game via the internet when bookkeepers work for you remotely. It means working with resources connected to a network or through computers, and the work doesn’t get done locally. Virtual bookkeepers work from their homes in the same city or perhaps even from a different country altogether. This is enabled via bookkeeping software that lets you and your virtual bookkeeper share an account with which they post financial transactions, review and update statements and even reconcile your accounting without meeting you in person.

Pros And Cons Of Virtual Bookkeeping Services:

Virtual bookkeepers will have the comfort and convenience of working from home. This will be a win-win for them, and the employer as the bookkeepers enjoy improved work-life balance, and the accounting firm can take advantage of reduced office-based operational costs. While virtual bookkeepers can be pretty capable, they often lack up-to-date training and access to robust technology and typically do not have backups if resources go unavailable. Moreover, these bookkeepers will be employed on your accounting firm’s payroll, and you also need to manage the infrastructure needs. Accounting firms hesitate to pick this kind of bookkeeping service. They rather prefer onboarding professionals locally so as to avoid data security risks. Another major drawback is that the virtual bookkeepers may not be technologically updated.

What are Outsourced Bookkeeping Services?

Outsourced bookkeeping refers to bookkeeping tasks carried out virtually by bookkeepers employed and managed by a third-party service provider. They will also be based remotely, perhaps across continents, but will work as an extended part of your team outside a delivery center. Outsourced bookkeeping services offer enormous benefits and are in huge demand worldwide. They help accounting firms scale quickly and are highly cost-effective, making them the go-to choice for top CPA firms.

Pros And Cons Of Outsourced Bookkeeping Services

The major advantage of outsourced bookkeeping services is that they offer all the benefits of virtual bookkeeping. Outsourced bookkeeping services are one of the most cost-effective ways of taking the burden of bookkeeping away from your CPA firm. It helps build capacity immediately, promises faster turnaround times, and benefits from the advantageous time zone difference. Top accounting firms opt for outsourced bookkeeping services to access top skilled and experienced bookkeepers with access to the latest technology and bookkeeping software. You need not worry about hiring or training the candidates or paying for software updates. The third-party service provider ultimately manages the infrastructure and resources. More importantly, bookkeeping outsourcing offers comprehensive data security and confidentiality measures in place.

MUST READ: The Definitive Guide To Outsourced Bookkeeping Services

The Advantage of Outsourced Bookkeeping over Virtual Bookkeeping Services

Imagine having an expert bookkeeper with excellent communication skills and several years of experience and proficiency in the latest bookkeeping tools & software. And all of these, without the premium price tag! The best part is they will neither be on your payroll nor will you have to pay for any infrastructure or software costs. With outsourced bookkeeping services, enjoy the advantage of building an offshore team of certified and trained professional bookkeepers at a very affordable price. Successful CPA firms believe in handing over your accounting firm’s financial books in the safest hands of a dedicated team of expert bookkeepers to ensure data security and best practices.

OVER TO YOU

While virtual bookkeeping can be cost-effective and an effective way to stay ahead of your books, outsourced bookkeeping services are a priority for top accounting firms. That’s because the most trusted, global payroll outsourcing providers assure you of quality, expertise, and airtight data security. CPA firms increasingly take the outsourcing path and no longer consider bookkeeping outsourcing to be a complex, scary, or more significant commitment. Scalability is one of the key benefits of bookkeeping outsourcing. Hiring an offshore professional also provides flexible engagement models such as FTE, pay-as-you-go, and block-of-hours. Depending on your work volume, you can choose the option that best suits your needs.

QXAS: THE BEST OUTSOURCED BOOKKEEPING SERVICES COMPANY

QXAS US is a leading bookkeeping outsourcing services provider offering custom-made solutions to CPA firms looking to scale. With a dedicated team of 1000+ accountants, our offshore team is here to help you save time, effort, and money alongside mitigating potential financial risks. Equipped with state-of-the-art infrastructure and the latest bookkeeping software and tools, we bring you increased operational efficiency and agility. We also offer multiple engagement models to suit every requirement at a reduced administration cost.

Why QXAS?

• Interview and Onboard highly talented offshore bookkeepers with a minimum of 5+ years of experience within 48 hours
• Substantial cost savings: Up to 50% on your bookkeeping tasks & increased profits
• First SOC 2 Type II compliant accounts outsourcing services provider in India
• Add certified, dedicated, outsourced bookkeepers to work as an extension of your team
• Use the saved time to focus on innovation & growth avenues and increase scalability
• Multiple engagement models
• Airtight data security & confidentiality: Our offshore bookkeepers leverage an IT infrastructure with ISO 27001:2013 certification for information security management systems.