What is remote bookkeeping – and how can it help your business?

Over the last decade, the way outsourced bookkeeping services are delivered has changed dramatically. Traditionally, you’d usually hire a bookkeeper to visit your premises and work their way through hard copies of your financial records. However, with the advent of secure cloud software, remote bookkeeping is fast becoming a popular and more cost-effective option. In this post, we look at what remote bookkeeping is, how it works and the ways in which it can benefit your business.

What is remote bookkeeping?

Remote bookkeeping – sometimes known as virtual bookkeeping – is when your business’s financial records are maintained by a professional bookkeeper who works off-site.

With the help of secure, cloud-based accounting software like Xero, FreeAgent or Hammock, an expert bookkeeper can keep your records up to date from any location with internet access.

This is great news for businesses as it widens the choice of bookkeepers open to you. Instead of choosing a bookkeeper because they are based locally, you can now select a remote bookkeeper based on expertise. For example, you could be based anywhere in the UK and decide that THP’s bookkeeping service is the best fit for you. Unlike many specialist bookkeepers, we also offer a wider range of complementary services, such as  annual accounts, VAT return services, payroll outsourcing and more.

What does a remote bookkeeper do?

A remote bookkeeper does everything needed to keep your books in tip-top condition. The only difference is that they don’t need to visit your business’s premises.

At THP, our remote bookkeeping service typically includes:

• Recording daily financial transactions
• Reconciling bank statements
• Managing accounts payable and receivable
• Preparing and submitting VAT returns (as an add-on service)
• Ensuring compliance with Making Tax Digital (MTD)
• Supplying regular financial reports

A virtual bookkeeper can also work with your accountant to prepare your annual accounts.

How does virtual bookkeeping work in practice?

Virtual or remote bookkeeping is simple and secure in practice.

In the old days, you had to provide your bookkeeper with paper copies of receipts, banks statements and other financial records.

These days, much of this information can be accessed instantly via cloud accounting software. For example, you can take digital photos of receipts on the move using a mobile app. If there’s financial information that you haven’t already entered into your accounting software, you can send your remote bookkeeper digital copies via secure file transfer or file sharing software.

Once your remote bookkeeper has access to your cloud software and financial records, they can update your records in real time and make sure everything is correctly reconciled.

What are the benefits of off-site bookkeeping?

The benefits of off-site bookkeeping are pretty clear. Key advantages include:

• More choice of bookkeepers. You can work with a remote bookkeeper based anywhere in the UK.
• Lower cost. You don’t have to provide an external bookkeeper with office space or pay for their travel time and expenses.
• Real-time updates. Once your bookkeeper has updated your cloud accounting records, you’ll have the most recent data at your fingertips.
• Flexible. If you choose a large enough provider, bookkeeping support can grow with your business.

Is remote bookkeeping for me?

If you don’t have a dedicated, in-house finance or accountancy team, remote bookkeeping is definitely an attractive option. As a sole trader, it’s a cost-effective way of keeping your financial records in shape while freeing up your time to concentrate on your business. If you’re a growing company needing support with bookkeeping, VAT, payroll and other services, then a larger firm like THP can give you the support you need.

Most importantly, though, when you choose THP to do your books, we draw on our wider accountancy expertise. That means you benefit from joined-up advice that could save you money. Our service offers much more than just data entry!

How do I find out more?

If you’d like to find out more about remote bookkeeping, get in touch today. Our bookkeeping service can be tailored to your needs, giving you peace of mind that your records are accurate and up to date.