July 25, 2018
Virtual teams are here to stay. A virtual accounting department is similar to a traditional department in that there are staff, managers, and a virtual CFO that support the business at fractional levels as they serve several businesses at once, achieving exceptional results. This emerging accounting service offers a number of benefits, four are listed below:
- Specialization: Timely and accurate financial information is critical in running a successful business. Having a team that keeps employees and vendors paid on time helps the company to serve the end customer better. A virtual accounting department allows a specialized team to run the back office without interfering with your revenue generating operations.
- Segregation: Fraud can severely cripple a small business, thus the security of a virtual accounting department allows a business to strengthen its internal controls by separating the accounting from the check signers.
- Time maximization: Training and managing an accounting team takes time, time an owner could be using to make revenue. Turnover can significantly hinder timeliness and accuracy, thus a virtual accounting department that is firm-based allows a company to deflect turnover issues as processes are standardized and automated with firm support.
- Cost Efficiency: A virtual accounting department is paid like an independent contractor, thus payroll taxes and office overhead are minimized. Also, a virtual accounting department can scale with operations, thus headcount additions or subtractions save resources as they can fractionally be added or subtracted correspondingly.
An investment in a virtual accounting department is a wise investment that will provide long-term benefits and consistently support a company through all of its business cycles and stages.