How to Be Virtual Bookkeeper - Job Description, Skills, and Interview Questions

Feb 18, 2023 / 6 Minutes Read / By Albert

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The rise in the use of technology, such as cloud computing, has had a huge effect on the bookkeeping industry. The automation of many accounting tasks has enabled businesses to have access to more accurate financial information in a much quicker time frame. As a result, the need for manual bookkeeping services has decreased, and businesses are increasingly turning to virtual bookkeepers for their financial management needs.

This shift has led to reduced costs, increased efficiency, and improved accuracy for companies that take advantage of virtual bookkeeping services. businesses are now able to access their financial data from anywhere in the world, making it easier to make informed decisions and take timely action.

Steps How to Become

Obtain a Bachelor's Degree in Accounting or Finance. A bachelor's degree in accounting or finance is the minimum educational requirement for becoming a virtual bookkeeper. This degree will provide you with a solid foundation of knowledge in accounting principles, as well as other business-related topics such as economics and business law. A bachelor's degree can typically be completed in four years at a traditional college or university.
Develop Your Bookkeeping Skills. Once you have earned your bachelor's degree, you will need to gain experience in bookkeeping. This can be done through an internship, taking on freelance bookkeeping jobs, or working for a bookkeeping firm. During this time, you should focus on developing your skills in areas such as data entry, financial statement preparation, and reconciliations.
Obtain Certification. While certification is not always required to become a virtual bookkeeper, it can be beneficial in increasing your chances of getting hired by clients. There are several certifications available in the field of bookkeeping, such as the Certified Bookkeeper (CB) credential offered by the American Institute of Professional Bookkeepers (AIPB).
Advertise Your Services. Once you are certified and have gained enough experience, you can start advertising your services as a virtual bookkeeper. You can do this through online job boards such as Upwork or Freelancer, or by creating a website to showcase your services. You can also reach out to potential clients directly to let them know that you are available for hire.
Establish Professional Relationships. As a virtual bookkeeper, it is important to build relationships with your clients so that they can trust you with their financial data. Make sure to communicate effectively, keep them updated on progress, and respond promptly to any questions or concerns they may have. This will help ensure that your clients are satisfied with your services and will lead to more opportunities for work in the future.

The way to become a skilled and capable virtual bookkeeper is to gain the necessary qualifications and experience. First, it is important to obtain a formal education in accounting or bookkeeping, which can be done through online courses, or through an accredited college or university. This will equip the aspiring virtual bookkeeper with the knowledge and skills to successfully manage financial records for clients.

having prior experience in the field will make the transition to becoming a virtual bookkeeper easier, as it will provide the individual with a working understanding of accounting principles and practices. Finally, having excellent communication and organizational skills is essential for any virtual bookkeeper, as they must be able to explain complex financial information to clients and keep track of multiple accounts at once. With the right qualifications and experience, any individual can become a successful virtual bookkeeper.

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Job Description

Prepare financial reports, such as balance sheets and income statements
Monitor accounts to ensure payments are up to date
Reconcile bank statements
Record accounts payable and accounts receivable
Prepare invoices, financial statements, and other documents
Analyze financial information to recommend or develop efficient use of resources and procedures
Review and adhere to financial regulations and legislation
Stay up to date with technological advances and accounting software to be used for financial purposes
Provide advice on financial matters and suggest ways to reduce costs
Prepare tax returns and ensure taxes are paid properly and on time

Skills and Competencies to Have

Accounting Knowledge: Knowledge of generally accepted accounting principles and practices, financial statement preparation, and the recording and analysis of financial transactions.
Financial Analysis: Ability to analyze financial data and create financial reports.
Tax Preparation: Knowledge of federal, state, and local tax laws and regulations, as well as the ability to accurately prepare and file taxes.
Problem-Solving: Ability to identify issues, analyze and evaluate data, develop solutions, and make decisions based on sound judgement.
Attention to Detail: Ability to accurately enter data into accounting systems, review financial statements for accuracy, and detect errors in financial records.
Communication: Ability to effectively communicate with clients via phone, email, and in-person meetings.
Computer Skills: Proficiency in accounting software, spreadsheets, databases, and other software programs.
Time Management: Ability to manage multiple clients, prioritize tasks, and meet deadlines.

Having strong organizational and communication skills is one of the most important skills for a virtual bookkeeper to have. Without these skills, a virtual bookkeeper is unable to effectively manage their client's finances, process invoices, record transactions, and deliver accurate financial reports. Furthermore, without good communication skills, the virtual bookkeeper may struggle to collaborate with their clients, understand their needs and provide timely updates. As such, having strong organizational and communication skills is essential for a virtual bookkeeper to ensure they provide quality services and maintain good relationships with their clients.

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Frequent Interview Questions

How long have you been a Virtual Bookkeeper?
Describe your experience with accounting software?
How would you handle a client whose books require significant clean up?
What methods do you use to stay organized while working remotely?
How do you handle customer service issues or complaints?
How do you ensure accuracy in your bookkeeping process?
What strategies do you use for managing cash flow?
What procedures do you have in place for reconciliation of accounts?
Describe your experience with financial reports and analysis?
What do you consider the most important skills for a successful virtual bookkeeper?

Common Tools in Industry

QuickBooks Online. QuickBooks Online is an accounting software that helps businesses manage their finances, track expenses, and generate financial reports. (Example: Companies can use QuickBooks Online to track their income, expenses, and profits. )
Xero. Xero is an online accounting software that enables businesses to manage their finances, pay bills, and generate financial reports. (Example: Businesses can use Xero to keep track of their accounts receivable, accounts payable, and bank accounts. )
Sage 50. Sage 50 is an accounting software that helps businesses automate their accounting processes and generate financial reports. (Example: Companies can use Sage 50 to reconcile bank statements, generate invoices, and track expenses. )
Wave Accounting. Wave Accounting is a cloud-based accounting software that helps businesses track their finances, pay bills, and generate financial reports. (Example: Businesses can use Wave Accounting to manage their income, expenses, and payrolls. )
FreshBooks. FreshBooks is an online accounting software that helps businesses organize their finances, track expenses, and generate financial reports. (Example: Companies can use FreshBooks to create invoices, manage payments, and reconcile bank statements. )

Professional Organizations to Know

American Institute of Professional Bookkeepers (AIPB)
Institute of Certified Bookkeepers (ICB)
National Association of Certified Public Bookkeepers (NACPB)
American Society of Women Accountants (ASWA)
Association of Independent Professional and Self-Employed Accountants (AIPSEA)
National Society of Accountants (NSA)
International Bookkeeping Association (IBAA)
National Bookkeepers Association (NBA)
National Society of Tax Professionals (NSTP)
National Association of Tax Professionals (NATP)

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Common Important Terms

Accounting. The process of recording, managing, and reporting financial transactions for a business or organization.
Bookkeeping. The process of recording and tracking financial transactions for a business on a daily basis.
Chart of Accounts. A list of accounts used to classify and track financial transactions.
Double-Entry Bookkeeping. A system of bookkeeping in which each financial transaction is recorded in at least two accounts in order to reduce the risk of misstatements or errors.
Accounts Payable. An account that records the amount of money owed by a business to its vendors and suppliers.
Accounts Receivable. An account that records the amount of money owed to a business by its customers.
Reconciliation. The process of matching transactions between two or more accounts to ensure accuracy and completeness.
Budgeting. The process of creating a plan for managing a businesss finances over a certain period of time.
Financial Statements. Reports that summarize the financial activities of a business, such as income statements, balance sheets, and cash flow statements.
Virtual Bookkeeper. A person who performs bookkeeping services remotely using an online accounting software program.

Frequently Asked Questions

What is a Virtual Bookkeeper?

A Virtual Bookkeeper is a professional bookkeeping service that provides remote bookkeeping services to businesses from a remote location.

What services do Virtual Bookkeepers provide?

Virtual Bookkeepers provide services such as accounts payable, accounts receivable, payroll processing, financial reporting, and tax preparation.

How much does a Virtual Bookkeeper cost?

The cost of a Virtual Bookkeeper depends on the services required and the size of the business. Generally, rates range from $25-$50 per hour.

Does a Virtual Bookkeeper replace an in-house bookkeeper?

No, a Virtual Bookkeeper does not replace an in-house bookkeeper. However, they can supplement the work of an in-house bookkeeper by taking on more bookkeeping tasks.

What qualifications do Virtual Bookkeepers need?

Generally, Virtual Bookkeepers need to be certified by a professional organization such as the American Institute of Professional Bookkeepers or possess a degree in accounting or finance. They should also have experience with bookkeeping software such as QuickBooks.