Wednesday, June 3, 2015

Virtual bookkeeping can be virtually worry free for Canadian Businesses

Heard of virtual bookkeeping? Well, if you haven't you are about to be introduced to the concept. Bookkeeping has changed by leaps and bounds since the Internet has taken off and continues to grow as a means to financial management for businesses worldwide. It is an easy way to keep track of your finances and opens up a whole new level of price competition because you were able to hire services that are not local. You can find these services online. Some of them call themselves remote bookkeepers, online bookkeepers, or virtual bookkeepers. most of them or one or two man operations working online using bookkeeping software such as QuickBooks or simply accounting. Many of the bookkeeping software providers now offer online versions of their products. This makes it incredibly easy for bookkeepers to offer services remotely, because all the client needs to do is linked their QuickBooks Online software to the accountants.

How it works

So let's say you have a company based in Toronto, Canada. Your company is not large enough to hire an in-house staff member to oversee the finances of your company. so at this point, you go out looking for service providers in your area, but can't seem to find anything that you like due to pricing issues, availability, or anything that does not suit your needs. You have the option to search online or through word-of-mouth for a remote bookkeeper who will do your quarterly or monthly entries and reconciliations from another location wherever that may be. This can be done via QuickBooks Online as discussed above, or it can be done with the desktop version of QuickBooks. Most of the time, the company file will be shared over Dropbox or Google Drive or a similar file sharing product. Your bookkeeper will provide you with financial reports and an updated QuickBooks file along with whatever other services they are providing you with.

The Canada Revenue Agency will accept scanned receipts, but requires you to keep the original receipt as well. this is kind of interesting. Because the CRA requires you to keep the original receipt , it is best to find a virtual bookkeeper who can sort receipts as well as a part of their service. This becomes more difficult because now there are physical receipts involved. A good idea is to mail all your business receipts to your service provider for them to sort them out. you may want to scan receipts each month or quarter depending on how often you were having your virtual bookkeeping done, and then send all the receipts for the tax year in one envelope once the tax year has closed. your virtual bookkeeper can then sort of the receipts, categorizing them into expenses, and sending them back to you. This is just an option and if you'd like to save money, you may opt just to have the virtual services done and do your own receipt sorting.

How much does it cost?

Remote bookkeeping is mostly a cost driven business because most people would prefer a bookkeeper to come in to the office, or come pick up their financial documents in person in opposed to doing the bookkeeping online if the price was the same. But in some cases, companies do not have access to qualified and a knowledgeable bookkeepers, so they look to online book keepers to get the job done for them.

We offer the same bookkeeping monthly or quarterly packages remotely that we offer to our local customers. Our prices start at $150 a month including income tax return filing for Canadian companies. You can have a look at our quarterly and monthly bookkeeping packages to get a better idea of what price you would be looking at.

What kind of services can be provided?

With virtual accounting, we can provide all of the regular services we would provide any other customer. This includes:
  • Financial data entry
  • Financial reporting such as balance sheet and profit loss statement 
  • cost accounting
  • Internal bookkeeping audits
  • GST filing
  • Accounts receivable accounts payable
  • Financial and strategic management
  • treasury functions
  • Payroll services
  • Nonprofit bookkeeping
  • Income tax return preparation
  • Corporate tax planning
These are just some of the services we can provide remotely. See our full List of Bookkeeping Services for more.

Who is an ideal candidate?

The idea of bookkeeping online opens up so many opportunities to many different clients. let's say you are a wealthy businessman and decide to retire in another country. Somewhere where the weather is warm and the cost of living is much cheaper. You still have a corporation running in Canada and you would like to continue running a corporation. You come back to Canada for six months of the year, but for the winter you are gone. In this situation, the location of the bookkeeper does not matter because you will be away most of the time anyways. with any basic laptop, you will be able to communicate with your bookkeeper sending them the files and data they need to reconcile bank accounts and to perform the tasks they need to perform to get you ready for income tax filing. 

A remote bookkeeper is the perfect solution in this situation. much of the work will need to be done online anyways. And to tell you the truth, this is the case in many situations these days. business is much more global than it has been in the past and people tend to move around more. if your business brings you from place to place, virtual bookkeeper is an asset to your company.

A warning when looking for a virtual bookkeeper

The World Wide Web brings many benefits as well as many pitfalls to businesses in Canada. Your main objective will be to make sure that the remote bookkeeping service you choose is a trustworthy business and is knowledgeable in Canadian taxation and bookkeeping practices. The Canadian Revenue Agency has strict guidelines when it comes to scanning images of financial documentation. your remote bookkeeper will have to keep up with the standards set by the Canadian Revenue Agency CRA. 

It is always best to have a phone interview with the company and to check them out. This is one reason why word of mouth has always been and will always be the best way to find the service provider. Without word of mouth, be sure to do your own investigating and carefully select an online bookkeeping service that you feel comfortable with.

Dymas Services Limited is a Calgary Bookkeeping service that offers remote bookkeeping to small and medium-sized businesses across Canada . we invite you to give us a call to discuss your bookkeeping needs. we look forward to hearing from you soon.


Post a Comment