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Accountants with BS/BA in Finance or Accounting perform general ledger duties, balancing, reconciling accounts; assistance with federal or state tax preparation. Find Accounting / Finance / Tax WFH freelancers on January 21, 2025 who work remotely. Read less
A good virtual bookkeeper performs a variety of tasks to ensure that a business's financial records are accurate, compliant, and useful for decision-making. Here are the detailed tasks involved:
1. Daily Financial Transactions
Recording Transactions: Enter all daily transactions into accounting software like QuickBooks, Xero, or FreshBooks, including sales, expenses, receipts, and payments.
Bank Reconciliation: Regularly reconcile bank statements with the business's records to ensure all transactions are accounted for and to detect any discrepancies or fraud.
2. Accounts Receivable Management
Invoicing: Create and send invoices to clients for services or products sold.
Follow-ups: Monitor outstanding invoices, send reminders, and manage the aging of accounts receivable to ensure timely payments.
Receivables Reconciliation: Match payments received against invoices and reconcile these in the accounting system.
3. Accounts Payable Management
Bill Entry: Log all incoming bills into the accounting system.
Payment Scheduling: Schedule payments to vendors in accordance with payment terms to avoid late fees and maintain good supplier relationships.
Payables Reconciliation: Ensure all payments are correctly recorded and match with the bills received.
4. Payroll Processing
Time Tracking: Work with HR or directly with employees to gather time sheets or hours worked when there's no HR department.
Payroll Calculation: Compute employee wages, including overtime, bonuses, taxes, and deductions.
Payroll Submission: Process payroll through the chosen system, ensuring payments are made on time.
Compliance: Ensure payroll is compliant with local, state, and federal regulations regarding taxes and other withholdings.
5. Financial Reporting
Income Statements: Prepare profit and loss statements periodically to show the business's financial performance.
Balance Sheets: Generate balance sheets to provide a snapshot of the company's financial health at any given time.
Cash Flow Statements: Analyze and report on cash flow to help in financial planning.
Custom Reports: Create specialized reports based on business needs, like departmental expenses or project profitability.
6. Budget Management
Budget Creation: Assist or lead in creating annual or project-specific budgets.
Variance Analysis: Compare actual results against budgeted figures, identifying variances, and providing insights.
7. Tax Preparation
Tax Documentation: Gather and organize financial data for tax purposes.
Liaison with Tax Professionals: Work with accountants or tax advisors to ensure all tax obligations are met, although not usually preparing the final tax returns themselves.
Sales Tax Management: If applicable, handle the collection, reporting, and remittance of sales tax.
8. Expense Management
Expense Tracking: Categorize and record all business expenses accurately.
Receipt Management: Ensure all receipts are collected, scanned, and stored appropriately for audit trails or tax purposes.
Expense Approval: For businesses with an approval process, manage or assist in the approval of expenses before they are entered into the system.
9. Software and System Management
Software Proficiency: Maintain up-to-date knowledge of bookkeeping software to leverage all functionalities effectively.
Data Security: Ensure financial data is backed up, secure, and protected against unauthorized access.
10. Advisory and Consultative Services
Financial Advice: Offer insights on cost-saving measures, cash flow management, or areas where financial efficiency can be improved.
Decision Support: Provide data or reports to support business decisions, like investment in new projects or equipment.
11. Compliance and Record Keeping
Regulatory Compliance: Keep up with changes in accounting standards or local regulations that affect bookkeeping practices.
Record Maintenance: Ensure all financial records are maintained accurately for the required period for legal or audit purposes.
12. Client Communication
Regular Updates: Keep business owners or managers informed about the financial status through regular meetings or reports.
Answering Queries: Respond to questions regarding financial data or processes.
13. Continuous Learning
Professional Development: Stay current with new accounting methods, software updates, or tax law changes relevant to their clients' businesses.
A virtual bookkeeper must be meticulous, detail-oriented, and proactive in managing a business's finances remotely. By performing these tasks effectively, they help businesses maintain financial health, comply with legal standards, and make informed decisions based on accurate financial data.
When looking for an online accountant, you should consider a combination of technical expertise, soft skills, and specific qualifications. Here are the key skills to look for:
Technical Skills:
Accounting Proficiency:
GAAP Knowledge: Understanding of Generally Accepted Accounting Principles (or equivalent standards like IFRS if applicable).
Bookkeeping: Mastery in recording financial transactions accurately using software like QuickBooks, Xero, or Sage.
Industry Example: In the retail sector, an accountant should be adept at managing inventory accounting, understanding cost of goods sold, and handling sales tax calculations for multiple jurisdictions.
Tax Expertise:
Tax Preparation: Knowledge of tax laws, including corporate, personal, sales, and payroll taxes. Ability to prepare and file taxes efficiently.
Tax Planning: Skills in advising on tax-saving strategies and staying updated with tax changes.
Industry Example: For e-commerce businesses, an accountant needs to know how to manage international tax obligations, VAT for European sales, or sales tax nexus in the U.S., ensuring compliance with different tax regimes.
Financial Reporting:
Report Generation: Ability to prepare financial statements (income statements, balance sheets, cash flow statements) that are accurate and insightful.
Data Analysis: Proficiency in analyzing financial data to provide actionable insights.
Industry Example: In the non-profit sector, the accountant must be skilled in producing financial statements that comply with specific non-profit accounting rules (like those set by FASB in the U.S.), including fund accounting.
Software Skills:
Accounting Software: Expertise in using cloud-based accounting software for bookkeeping, payroll, and financial management.
Spreadsheet Proficiency: Strong skills in Microsoft Excel or Google Sheets for financial modeling or detailed analysis.
Industry Example: In manufacturing, knowledge of ERP systems like SAP or NetSuite for integrated financial management, including cost accounting and production planning, is vital.
Payroll Management:
Payroll Processing: Knowledge of payroll systems, including calculating wages, deductions, and ensuring compliance with employment laws.
Industry Example: For tech startups, understanding complex stock option plans, equity compensation, and ensuring compliance with varying state and federal employment laws is crucial.
Budgeting and Forecasting:
Budget Creation: Ability to develop and manage budgets.
Forecasting: Skills in financial forecasting to aid in business planning and decision-making.
Industry Example: In the construction industry, an accountant should be able to manage project-based budgeting, cost estimation, and forecasting cash flow for long-term projects.
Soft Skills:
Communication:
Clear Explanation: Ability to explain complex financial concepts in layman's terms.
Client Interaction: Strong interpersonal skills for regular client communications, including virtual meetings.
Industry Example: In consulting, the ability to explain complex financial strategies to lay clients who might not have a financial background is key, especially via virtual channels.
Attention to Detail:
Precision in handling numbers, ensuring no errors in financial records or reports.
Industry Example: For pharmaceutical companies, meticulousness in managing R&D costs, patent amortization, and regulatory filings is essential.
Problem-Solving:
Capacity to identify financial issues or inefficiencies and propose solutions.
Organizational Skills:
Excellent time management to handle multiple clients or tasks without missing deadlines.
Industry Example: In hospitality, where seasonal fluctuations can be significant, managing time-sensitive tasks like monthly closings or annual tax filings efficiently is critical.
Confidentiality:
Understanding and commitment to maintaining the privacy of financial information.
Adaptability:
Ability to adapt to new accounting software, regulations, or changes in client business models.
Industry Example: For software companies, resolving discrepancies in software revenue recognition or handling subscription-based accounting models requires strong analytical skills.
Qualifications and Certifications:
Certifications:
CPA (Certified Public Accountant): Indicates a high level of expertise and adherence to professional standards.
CMA (Certified Management Accountant): For those focusing on management accounting.
Other Relevant Certifications: Like Certified Tax Advisor, Enrolled Agent (EA), or QuickBooks ProAdvisor.
Industry Example: In healthcare, a CHFP (Certified Healthcare Financial Professional) can be beneficial for understanding the unique financial challenges of the industry.
Education:
A degree in Accounting, Finance, or a related field is beneficial but should be seen in conjunction with practical experience.
Industry Example: A CPA might be particularly valued in public companies for their ability to sign off on financial statements and ensure SEC compliance.
Experience:
Industry Experience: Preferably in your business's sector to understand specific financial nuances.
Remote Work Experience: Since they'll be working online, experience in virtual environments can be crucial.
Additional Considerations:
Technology Proficiency:
Comfort with technology, including security protocols for handling sensitive financial data online.
Ethical Standards:
Commitment to ethical practices in accounting, ensuring compliance with legal standards and avoiding conflicts of interest.
Industry Example: For healthcare providers, knowledge of healthcare-specific accounting practices like revenue recognition for patient services, and readiness for audits related to government funding or insurance billing.
Continuous Learning:
An accountant who actively seeks to update their knowledge with the latest in accounting practices, software, and tax laws.
When hiring freelancers, a good cloud accountant should also demonstrate a willingness to learn and adapt to your specific business model.
Client Testimonials or References:
Look for feedback from previous or current clients to gauge reliability, accuracy, and customer service.
Problem Resolution:
Ability to handle and resolve issues that arise, such as discrepancies in accounts or audit queries.
When hiring an online accountant, it's wise to verify their skills through interviews, possibly practical tests if feasible, and by checking references or reviews. Given the remote nature of the work, ensuring they have a secure, efficient setup for managing your financials is also key.
