Virtual Bookkeeping – The Wave of the Future?
In November I attended the Sleeter Conference, which was held this year in Phoenix, Arizona. This conference is where the top accounting software consultants, QuickBooks ProAdvisors, freelance bookkeepers and accountants from all over the country gather to talk shop and learn the latest and greatest about QuickBooks in particular, and accounting-related software and technology in general.
The theme for this year’s conference was two-pronged:
- Taking your business online.
- Prospering in a tough economy.
placeholder
Online Business and Prosperity
Serving clients virtually is becoming more and more common. The technology is rapidly improving and becoming more accessible and affordable. To work virtually means never leaving your office while still fully serving your clients’ needs.
It’s exactly how I’ve been running my business for the last five years.
I can give you many reasons why running your bookkeeping business online opens big new doors leading to prosperity. One has to do with the size of the market you can serve. Instead of just working with businesses in your local area, you can literally have clients from all over the world!
Imagine the possibilities.
This is far different than the way most of us tend to think about our businesses, isn’t it? That’s because it is different.
At the conference, many of the sessions surrounded the technolgy needed to successfully run your bookkeeping business on a virtual basis.
There were four major areas of technology discussed:
- Paperless technology – using scanners, PDF files, and digital document storage systems
- Virtual application hosting services – which means programs like QuickBooks are installed and run from “computer servers in the clouds” instead of on yours or your clients’ in-house computer systems. This means geographic location becomes irrelavant for getting the bookkeeping handled.
- Portals & collaboration – This technology allows clients to access their financial records by logging into your website. Other collaboration methods may also be used through the Internet to supply, access or share data with your clients.
- Software as a Service (SaaS) – Quickly taking hold are business applications that are being sold as low-priced, month-to-month subscription-type services provided by third-party companies, completely replacing desktop applications. An example of this that you may already be familiar with is QuickBooks Online Edition.
placeholder
Virtual Service Means More Flexibility
Providing virtual bookkeeping services gives you advantages over serving local clients alone. Working virtually saves travel time and costs, allowing you to serve more clients more conveniently and efficiently.
Working on a virtual basis also allows you to take on projects that might otherwise be too large, if you work as a solo freelancer. That’s because you can easily collaborate with other virtual colleagues to provide comprehensive services for your clients’ exact needs.
For example, I am currently working on a large project with a client on the other side of the country where I set up a clean new set of books. Working with me is another virtual bookkeeper who is inputting all of the historical data. Once she’s finished, I’ll follow up with training the client for the in-house functions. The client, my colleague and I are all located in different parts of the country.
If the project needed to be handled completely at the client’s physical location, it would have been impossible for me to accept this engagement.
Of course, there will always be a need for more traditional local and on-site freelance bookkeepers. But as more and more business is conducted online, the demand for virtual bookkeeping services will grow. There are many ways to work with your clients online, and the technology is moving quickly.
If becoming a virtual bookkeeper is something you want to pursue, stay tuned. I’ll be posting more articles on this topic in the coming months.
As always, be sure to drop me a line if you have any specific questions, or simply post a comment below. Together we can prepare for our virtual future as freelance bookkeepers, and prosper all along the way!
placeholder
Resources for working virtually with your clients
www.FindVirtual.com
www.FilesAnywhere.com
www.RightNetworks.com
www.SmartVault.com
www.LogMeIn.com
www.YouSendIt.com
10 Responses to “Virtual Bookkeeping – The Wave of the Future?”
Wolf Leonard on December 3, 2008
What are your thoughts on how to compete with virtual bookkeepers from English speaking countries overseas such as India ? I’ve experienced them bidding their proposals at $3 an hour.
Gabrielle on December 3, 2008
Hi Wolf,
Great question! It is true, there are many companies now who provide services from overseas, as you mention, most notably from India. This is because of all the technology available now that makes it easy to work virtually. And they are working for FAR less than we ever could, and quite honestly, their skills are good too. In fact, many accounting firms are subcontracting work to these companies to reduce labor costs.
However, I don’t see this as a problem for us. For one reason, the language barrier can be an issue. Not that these overseas folks can’t speak English. They can. But it is not their native language, and that in itself can cause frustrating communication issues. Many clients want those with English as their home language. Most clients are also rather suspicious about sending their financial data to another country where the laws on privacy may be different.
Also, clients whose primary concern is price are really not the best clients for your freelance bookkeeping practice. You do not want to position yourself as a commodity. And as you can see, if you just want to compete on price, you’ll lose anyway.
You are selling your expertise and your ability to provide value to your clients in helping them manage their business. You are not selling data entry services.
So bottom line: I see the outsourcing overseas as a good thing. It sends the clients who don’t highly value what we do to those who are happy to make $3. We get the higher level clients who are much more fun and interesting to work for, and we get paid well for our expertise and value-added services.
Gabrielle
Barb Meeks on December 3, 2008
Hi Gabrielle,
While I have not looked into virtual bookkeeping, the concept is appealing. I like the idea of providing the service from my home, never having to transport documents or myself to or from a site.
I have always been interested, excited if you will about bookkeeping and taxes. To me it is interesting to take a pile of papers and turn them into sensible information.
I would love to learn more about virtual bookkeeping please guide me.
Thank You
terrence on December 5, 2008
Gabrielle, I am just starting my bookkeeping business and I love the idea of virtural bookkeeping. Would you recommend that I start day 1 with online bookkeeping such as Quickbooks online ??? Thank You, Terrence
Sheila Bodford on December 6, 2008
Do you have any suggestions on the type of siminars that are going on in the US about accounting technology? Where would we look for these type of siminars?
Gabrielle on December 10, 2008
Barb,
You’ll see more articles in the area of virtual bookkeeping in upcomig posts. It’s a popular subject!
Terrance,
I recommend that you sit down and decide what your ideal business would be like. Visualize it. Then choose to pursue the type of freelance bookkeeping services that will give you that kind of business.
The truth is, there are so many options. But none of us can “do it all.” But that doesn’t mean we are locked into any one mode of business either. Pick what seems to work best for the type of business you want and run with it. In time, you’ll find the best combination for you.
Sheila,
Since QuickBooks is THE most popular bookkeeping software in the US (85% market share), watch for the seminars that Intuit puts on. Usually in the fall (most of them have passed now) they have a free 1/2 day seminar for the new version of QB that comes out each year. It’s definitely worth going to those if there is one near you. Check out the Intuit website for the accounting community at http://www.accountant.intuit.com
Great questions guys!!
Gabrielle
Kathe Runge on December 11, 2008
I am just beginning my research regarding the virtual office and what is available. Do you have a favorite that works best with Quick Books? Also do you use a combination such as Smart Vault and Right Networks. One for access and the other for document scanning and storage. Some of my local clients are beginning to request this opportunity so the bookkeeper, accountant and business owner/manager could all have access to QB. Thanks in advance for your response and I enjoy reading your newsletter.
Gabrielle on December 12, 2008
Hi Kathe,
The technology is moving quickly and getting more sophisticated…which is great for us! The combo you mentioned is a good one of Smart Vault (paperless document management) and Right Networks (virtual desktops). There are lots of choices out there, and as you mention, my suggestion is to pay attention to what your clients want and what they’re ready for. If they are already going paperless, they are ripe for these services. Conversely, you have to be careful to not be too far ahead of them either, or you may have a tough sell.
Another solution that is up and coming that you may want to explore that works with QuickBooks is Method (www.methodintegration.com), depending on your clients’ needs.
This technology is an area we all need to watch closely!
Thanks for your feedback, it is appreciated.
Ted on December 17, 2008
Great site. I’m glad you are doing this.
I’ve been parusing sites like the Four Hour Work Week and the one by the authors of “Why Work Sucks and What to Do About It” trying to get an idea of how to build a better life, and am looking at virtual bookkeeping. I am reviewing past posts to get an idea about starting and running a virtual bookkeeping business look forward to seeing future posts, and the suggestions included.
I am a CPA and a CMA, but my career has not gone as well as I would have hoped. I’m hoping that by starting a business I can showcase my talents, and by leveraging my CPA and CMA I can do some value added stuff to make me stand out.
The question I have for you (or anyone who reads this) is whether it would be worth my while to join the NACPB. It looks like a good organization, but wanted to hear other’s experiences with it. Please let me know if anyone has joined them, and if it is a good deal.
Thanks!
Ted
Gabrielle on January 31, 2009
Hi Ted,
NACPB has a lot to offer, including some live seminars online and in person. I think the decision about whether or not to join is an individual one. In the bookkeeping community, as with most things, there are those who love it and those who are less enthusiastic. Since the guy who is the founder of NACPB is also a CPA and has a background in both public bookkeeping and QuickBooks consulting, it would likely be a good fit for you to give it a shot and try it out for a year. Ultimately, you won’t know if the organization is right for you unless you try it. That’s what I did anyway.
Wishing you much success in your virtual bookkeeping (and beyond)!
Gabrielle