Traditional office-based bookkeepers do the same things that online bookkeepers do. They reconcile bank and credit card accounts, prepare payroll, and record financial transactions.
The distinction lies in the way they work. In contrast to a conventional bookkeeper, who works on-site, a virtual bookkeeper uses cloud-based software to complete all his duties far from his clients.
And online bookkeepers are called plenty of names.
In addition to online accounting, entrepreneurs use other terms like remote bookkeeping and virtual bookkeeping.
But whatever you call them, the underlying reason you need bookkeepers remains the same. Like employing an internal staff to manage a business's financials, online bookkeepers ensure that the numbers in the books are accurate and complete.
Working online will do wonders if you're an accountant or a bookkeeper in the Philippines. It's a highly-respected profession, and every year, thousands qualify for arguably one of the most challenging professional licensure examinations in the country.
Keep reading this article to know more about online bookkeeping and how much you can expect to make.
What Companies Need Online Bookkeeping?
Online accounting is a handy alternative to on-site services for businesses of all types and sizes. It is somewhat of a universal service essential to how companies operate.
But some businesses have pioneered hiring online bookkeepers. These businesses employed remote bookkeepers and accountants when traditional firms showed skepticism.
If you're a seasoned online bookkeeper, you probably know the types of companies you'll generally encounter on job marketplaces looking for remote-based accountants.
Here are some of the types of companies that need online bookkeeping services:
(1) Startup companies
As the business grows, the complexity of managing accounts and paying bills increases. And a startup does not have enough human resources to have a dedicated team to look for its finances.
So some members of the team will have to do it. And it will eat so many valuable hours intended for more essential tasks.
Startup companies with limited resources hire remote workers to save on overhead and additional costs for a bigger office space. To push its cost-effective measure further, they look to hire from countries like the Philippines.
(2) Unusual business models
Some bookkeepers in a business's locality may not be acquainted with unique business models. They might have difficulty on how to record and classify transactions. In short, local bookkeepers are limited to what they've practiced for years, if not decades.
Hiring virtual bookkeepers expands a company's talent options.
A bookkeeper who knows how to prepare complex financial reports and compute taxes could be living in the Philippines. An alumnus of a Big 4 firm is living somewhere on the island of Boracay.
Distance no longer matters. The uniqueness of a business model calls for the need for a reliable bookkeeper with expertise and experience. With online bookkeeping, companies can work with anyone from anywhere.
The internet gave businesses access to a broader variety of bookkeepers and finance services.
(3) Business in several locations
Having multiple locations can be very time-consuming and costly. Having a single bookkeeper who only covers one area can be very expensive.
And an online bookkeeper handling all these locations gives you an idea that remote work does make sense.
With an online bookkeeper, businesses can manage their financial information from anywhere. Online bookkeepers complement the multi-location nature of these businesses.
Responsibilities of an Online Bookkeeper
Typically, an online bookkeeper manages the accounts and finances of an employer. It may be personal or business accounts.
Online bookkeepers may manage recording accounts payable and account receivable and paying suppliers individually or within a department, depending on the company's size and needs.
Online bookkeepers work with cloud-based accounting and bookkeeping tools to make the remote setup possible. The most common would be Quickbooks and FreshBooks.
The employer will give them access to record transactions and reconcile accounts. Using these tools would include the generation of financial statements and reports.
Everything is online, from the maintenance of the general ledgers to making year-end adjustments.
Qualifications of an Online Bookkeeper
Most tasks an online bookkeeper may face are relatively easy to complete if you're a qualified accountant. But a Certified Public Accountant (CPA) license is not mandatory.
A college degree may convince potential employers that you're fit for the online bookkeeping job. But again, you can make up for the lack of a degree with significant prior work experience.
Apart from the technical qualifications, the ideal online bookkeeper needs to have a well-organized work schedule and is keen on details. In bookkeeping, the "devil is on the detail."
If you meet these requirements, you could become a virtual bookkeeper:
- Minimum of 1-3 years of experience in bookkeeping
- CPA license is a plus
- Excellent in reporting results and dealing with complex numbers
- Bachelor's degree in finance, accounting, or a related field is a plus
A minimum of one year of experience in the accounting or bookkeeping industry is required. Such work experience will give you a general understanding of accounting and bookkeeping principles and proficiency with online accounting software.
No formal education is required, but a degree in accounting, finance, or business will give you a headstart. But many online bookkeepers got their skills as in-house bookkeepers for more prominent outsourcing firms. It is from this job they've learned the ropes of bookkeeping.
Since you're dealing with financial matters, you'll need to pay close attention to detail. It would be best to be organized, a multi-tasker since you're managing multiple accounts, and willing to work long hours during due dates and deadlines.
Expected Salary of an Online Bookkeeping Job in the Philippines
On average, online bookkeepers can earn $500-800 per month. In practice, part-time rates are typically around 50 to 60 percent of the monthly payment rates.
These rates are way higher than what you can get from traditional bookkeeping firms and are way higher than the starting salary in reputable firms like PwC, Deloitte, and EY in the Philippines.
The Philippines outsourcing business is changing. It is snowballing as more Filipinos choose to work full-time online.
To remain competitive and attract potential employers, you should update your portfolio of work experience and keep an eye on the goal.
Start Your Online Bookkeeping Job at VirtualStaff.ph
Find a career as an online bookkeeper on Virtualstaff.ph and get the maximum earning potential. Register now and create your profile in three simple steps.
You'll need a VirtualStaff.ph account to find an employer or an online bookkeeping job. You may give as much information as possible, such as skills, work experience (if available), and other significant information that could help make your profile stand out.
After completing your profile, applying for an online bookkeeper is simple. Browse the jobs section and send your application to the listing that probably fits your schedule and skills.
The greater your expertise, the more likely you'll secure an interview. Most employers would shortlist three to five candidates for the role. So you'll be competing with others, so always put your best foot forward.
