How to become a bookkeeping virtual assistant: Comprehensive Guide

1. Introduction:

This article is intended for anyone considering to become a Bookkeeping Virtual Assistant or looking for a career in virtual bookkeeping. If you're already employed as a bookkeeper and want to become a virtual assistant. This post will help you make an informed decision and guide you throughout the transition. In addition, it will also provide insight into who should choose this particular type of work as their career. Let's begin by exploring the key aspects of virtual bookkeeping as a profession.

2. Who Should Select Bookkeeping Virtual Assistant as Their Career Option?

Are you an individual with a deep interest in math and numbers? Do you pay meticulous attention to detail, and have an aptitude for making simple calculations? Then consider becoming a bookkeeper—a career option that requires working with numbers and financial data on a daily basis. If you aren't good at math, or if you don't like dealing with numbers, this job is not for you.

As a bookkeeper's virtual assistant, extraordinary attention to detail is expected of you. Inattention to seemingly minor details can lead to larger problems that may consume more time to resolve later. Furthermore, Bookkeepers must handle numerous tasks at once, focusing on smaller jobs rather than larger ones over an 8-hour workday.

Once you've chosen your path, then the necessary skills can be developed along the way. A successful career starts with focusing on what energizes you and choosing a job that resonates with who you are. This is the perfect way to ensure success.

Note: To learn more about Various types of virtual assistants i recommend you to read "Different types of virtual assistants and their function"

3. Rethink your selection to become a bookkeeping virtual assistant:

Selecting a career is a major decision, and it should not be taken lightly. It doesn't matter if you lose money by taking a wrong decision. Well, you can earn again, but your wasted time cannot be compensated again. It's important to take some extra time. And make sure that the decision you're making is right for you in terms of your passions and interests. Doing so will ensure your future success and satisfaction.

4. The Future of Bookkeeping with a Virtual Assistant:

Now you are confirmed about selecting a bookkeeping virtual assistant as your career option. Now let's see about its scope and future.

Bookkeeping virtual assistants are in high demand as businesses look for ways to save money and increase efficiency. To serve your clients with top-notch services, possessing the necessary skills and knowledge is crucial as a virtual assistant.

You can provide bookkeeping services such as creating accounts, preparing financial statements, reconciling accounts, tracking expenses, and more. You should be familiar with accounting principles and practices so that you can interpret financial data accurately for your clients.

Additionally, having knowledge of QuickBooks or other accounting software can help you provide better service to your clients. With the right skills and knowledge, you can become a successful accounting and bookkeeping virtual assistant.

5. Challenges to become a bookkeeping virtual assistant.

If you want to become a bookkeeping virtual assistant, but you feel stuck and unsure, not knowing where to begin. You've tried researching, but nothing seems to help. You're worried that your lack of skills and experience will hold you back from becoming a successful bookkeeping virtual assistant.

Don't worry — getting started is easier than it seems! With our comprehensive guide for beginners, you'll learn all the essential skills needed to become a bookkeeping virtual assistant. All the tips and tricks are here - all you have to do is get started!

6. What Does a Bookkeeping Virtual Assistant Do?

Bookkeeping virtual assistant responsible for maintaining financial records, updating the general ledger, and preparing trial balances for accountants to review. Furthermore, they make sure all paperwork is properly filed for taxation compliance.

A bookkeeping virtual assistant can help with cash flow and providing financial reports that can help managers make informed decisions. Additionally, they can assist with various administrative tasks like running payroll and generating invoices.

Responsibilities:

• Prepare payroll reports.

• Generate invoices for clients.

• Prepare monthly financial reports.

• Assist with budgeting and forecasting activities.

• Monitor cash flow and provide updates on the status.

• Reconcile accounts and provide updates on discrepancies.

• Respond to customer inquiries related to billing or payment issues.

• Ensure the accuracy of financial data entered into the accounting system.

• Manage financial records and accounts, including bank statements and invoices.

7.Required Qualifications

To become a bookkeeping virtual assistant, one must possess certain qualifications. It also varies from organization to organization based on their needs. You may need to have a graduation degree in accounting. A high school degree with some additional courses in bookkeeping will also help you get a bookkeeping virtual assistant job.

8. Skills you require to becom a bookkeeping virtual assistant.

The below-mentioned skills are required to become a successful bookkeeping virtual assistant:

A. Bookkeeping

It involves tracking and recording all financial transactions on a daily basis and organizing them in their respective accounts. This provides insight into your company's financial condition and enables you to make sound business decisions.

Accurate and up-to-date transaction records are essential for businesses that wish to measure their performance and generate accurate financial reports.

Keeping detailed records will also come in handy in the event of a tax audit. To ensure that businesses can prepare for any situation.

Comprehensive transaction records allow businesses to get a better understanding of their finances. Enabling them to make more informed decisions when it comes to managing their money.

B. Double-Entry Bookkeeping System:

Double-entry bookkeeping is an accounting system used to record every transaction. The process involves making a debit in one account and a credit in another. To ensure that the sum of the debits and credits always balances out. This effective approach helps keep track of financial data accurately and efficiently.

For example, a businessman purchased new machinery for his business for $2,000. He credits his machinery expense account for $2,000 and debits her cash account for $2,000. This is because his machinery expense assets are now worth $2000 more, and he has $2000 less in cash.

Equation:
Assets=Liabilities+Equity

C. Bank Reconciliations

A bank reconciliation statement is a critical document that assists in verifying the accuracy of the company's financial records. It corresponds to the cash balance of a company with the amount recorded on its bank statement, helping to identify any discrepancies or errors that may need to be amended.

Companies conduct regular bank reconciliations to accurately reflect their cash records and detect any fraudulent activity or improper cash handling. This verification process plays an important role in keeping a company's finances healthy.

D. Creating Financial Statements

Financial statements are an imperative way to document a business’s operational and financial success. This data is regularly checked by government agencies, accounting firms, etc. To ensure the accuracy of the information and for tax, financing, or investing decision-making processes.

Profitable companies prepare financial statements like balance sheets, income statements, statements of cash flow, and statements of changes in equity. However, non-profit companies have access to a different set of financial statements for their operations.

E. Inventory costing methods

Establishing an accurate cost for inventory is essential for businesses and can be done using various methods. Popular costing techniques include inventory costing, which assigns a value to products that have been sold. As well as several other common methods that involve assigning values to goods.

A company's choice of inventory costing method may depend on its operations and inventory type. Both of these parameters play an important role in choosing the right method.

F. Accounts receivable

Companies are typically owed money by their customers for the goods and services they provide. Which is known as accounts receivable. This figure is reflected in the balance sheet as a current asset and represents any unpaid credit purchases.

Accounts receivable are created when a business allows customers to purchase items or avail services on credit.

G. Asset accounting

Asset accounting is a process that helps companies accurately record and report financial information related to the balance sheet statement. This statement includes all the assets of a company, making it easier to understand its financial position.

When it comes to asset accounting, accuracy is essential. Balance sheets must report assets in two categories: current and fixed, which represent the economic improvements of a business. Without accurate reporting of this information, companies can't accurately determine their total wealth.

Items with values in each group are determined by Generally Accepted Accounting Principles (GAAP).

H. PP&E Accounting

Property, plant, and equipment, or PP&E for short. These are long-term tangible assets of a firm that are essential to its operations. They can't be converted into cash easily since they possess a physical nature and can usually be touched.

I. Accounting Cycle

Companies use the accounting cycle to accurately monitor their financial situation, as depicted in their financial statements. The process is detailed and methodical, allowing businesses to accurately track finances over time.

During the accounting cycle, businesses record their financial dealings in a journal and transfer them into a general ledger. They then review the entries and make sure everything is balanced to ensure accuracy. And generating financial statements and finalizing their books for that period.

J. Accounting software

Accounting software is an invaluable tool for businesses, as it provides great efficiency in both accounting and bookkeeping tasks. Storing financial data accurately, helps businesses complete their transactions quickly and accurately.

Accounting software comes in all shapes and sizes, each providing its own set of features. Generally, they can enter, store, and analyze data automatically. Which drastically reduces the amount of time needed for tasks such as bank reconciliation.

It’s also possible to conduct invoicing, bill payments, payrolls, and financial reporting using accounting software.

K. Accounting Measurement

Accounting measurement is the presentation of information in terms of an established criterion, such as money, hours, or items.

By using standard accounting measurements, it is much simpler for a business to analyze and assess its financial data. This enables them to evaluate different parameters over a given period, making it easier to recognize how their company functions.

This can involve analyzing sales volume, unit sales, hours put in, hourly cost, and so on.

L. Basis of Accounting

This explains how financial operations are recorded and reported. Including when assets, liabilities, income, or expenses are recorded and included in the financial statements.

Below are listed three primary types of the basis for accounting.

9. What if you don’t know about these skills?

Please don't panic while you read about the skills you need to acquire to become a bookkeeping virtual assistant. As I mentioned earlier, the most important decision you'll make in your career is which path to follow. The skills you need to succeed can be developed over time.

Online courses can help teach the skills needed to be a bookkeeping virtual assistant. Even if you don't have an accounting degree or a high school diploma.

You can learn these skills from various platforms, like

10. Different Job Titles of Bookkeeping Virtual Assistant

11. Salaries and Earnings

There are two different methods through which you can earn

Job: As a bookkeeping virtual assistant, you can get a full-time job starting at $40,000 per year at entry-level (U.S.). It may be less or more according to various companies' policies, countries, and economic situations.

Freelancer: You can also work as a freelancer by offering your services at various charges. It started at $18 per hour and went up to various charges depending on the type of service you offer.

Or you may be able to start your own business by offering bookkeeping services to small businesses. So it's up to you how you want to earn by becoming a bookkeeping virtual assistant.

12. Career growth from here

With bookkeeping as your career, you open the door to incredible possibilities for growth. If you desire, you can launch a freelance venture or own a business. If you opt to acquire further qualifications, you can even climb the corporate ladder. Here are a few potential positions you can pursue when you build on your knowledge and expertise.

13. Pros and Cons of Working as a Bookkeeping