Virtual Bookkeeper vs. In-House Bookkeeper: Which Makes More Sense for your Business?

Outsourcing a virtual bookkeeper or hiring an in-house bookkeeper depends on the needs of your business. Here are some things to consider.

You’ve reached a point in your business where it’s time to offload the work of bookkeeping to a trusted and knowledgeable bookkeeper. Handing off bookkeeping tasks to someone can feel both relieving and uncomfortable – you’re excited to take that time back to focus on your business but you want to ensure that your financial records are in good hands.

Do you have enough bookkeeping work for a full-time position?

If there is consistently 30 to 40 hours of work each week, then hiring an in-house bookkeeper is best. A virtual bookkeeper may be the better option when you need someone who can work varying hours depending on your work levels.

Do you need your bookkeeper to work face to face with customers and/or suppliers?

If you foresee needing someone in person to deal with customers and/or suppliers on a regular basis, then hiring an in-house bookkeeper is best. A virtual bookkeeper works remotely so they will have little interaction with customers and/or suppliers.

Do you have concerns about compliance and other regulatory requirements?

An in-house bookkeeper is capable of following the appropriate accounting standards, ensuring tax compliance on each transaction and that remittances and payments are made on time.

When transactions become more complex, however, a virtual bookkeeper may be the better option. A virtual bookkeeper works as a part of a virtual accounting team and so has more resources available to them in understanding complicated transactions and meeting regulatory compliance.

Do you want your financial records kept electronically but don’t have the systems to do so?

An in-house bookkeeper can help you to purchase the electronic systems for your business and get it set up and running. 

If you’d like to hit the ground running, a virtual bookkeeper may be the better option. They already have an electronic system in place – financial reports are completed online, are properly secured and backed up, the systems vetted and the bookkeeper is trained and certified in its use.

Are you concerned about vacation times, sick days and sudden departures?

One drawback of an in-house bookkeeper is the risk of absences and sudden departures. If during busy season, the in-house bookkeeper gets the flu, they may be unable to work for two weeks. Or if they suddenly leave, onboarding a new bookkeeper can be a slow process.

As part of a virtual accounting team, a virtual bookkeeper can rely on another team member to take over the work. The replacement will have access to Standard Operating Procedures so that the transition is smooth and seamless.

Have more questions about whether a virtual bookkeeper is right for you? Get in touch.