A virtual accountant is an independent contractor who provides accounting and bookkeeping services remotely through software programs and electronic devices. They require exemplary math skills, organization, and attention to detail, and may need to provide ancillary services unique to their clients’ industries. A high school diploma is usually the minimum education required.
A virtual accountant is a professional in their field who works in a remote location rather than in a traditional office environment. He is usually an independent contractor who provides a full line of general accounting and bookkeeping services to his clients through software programs, database sharing, email and faxing. Home offices are often the only physical location for the business operation.
Just like a traditional accountant, a virtual accountant usually has experience in a wide variety of accounting applications. He is typically proficient in processing accounts payable, accounts receivable, account reconciliation, and payroll. Keeping general ledger and other transaction records is normally a regular part of their job.
In addition to having a comprehensive understanding of bookkeeping and bookkeeping principles, a virtual accountant usually has access to and knowledge of a wide range of accounting software. Some software programs are accounting systems that simply track income and expenses and generate checks. More advanced programs can estimate taxes, calculate labor costs, manage projects, and work in conjunction with spreadsheets or word processing software.
An increasingly popular tool used by virtual bookkeepers is an electronic scanning device that scans, categorizes, and saves business receipts, business cards, and important letters and documents. Most of these devices are approved by local and regional regulatory agencies to be so accurate that the original receipts and documents can be discarded after being scanned and saved. This reduces the amount of space a virtual accountant requires to run their business and simultaneously serve multiple clients.
A person in this field is usually required to provide ancillary services that are unique to the industries in which their clients operate businesses. For example, small independent retail and wholesale operations often require him to track purchase orders or keep copies of customer invoices. Suppliers and manufacturer representatives may ask the accountant to process credit claims and also check references. Clients can also ask him to prepare year-end reports or issue W-9 or 1099 tax documents to employees.
A high school diploma is usually the minimum education required to become a virtual accountant, but an associate’s or bachelor’s degree in business, accounting, or a related field can improve the job prospects of aspiring candidates. To succeed as a virtual accountant, exemplary math skills are typically required. A high level of organization and excellent attention to detail are useful qualities in this position. Since a virtual accountant usually works alone, being motivated and self-focused is also imperative for success. Reliability, integrity and discretion are normally highly regarded characteristics due to the nature of the information that clients of the virtual accountant regularly need to share with him.
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