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Which challenges can be improved by moving from traditional to virtual accounting services?

The biggest obstacle to efficiently outsourcing parts of the traditional accounting process is the use of desktop accounting software instead of cloud-based software. It sounds simple, but it’s true. Desktop accounting software requires multiple unnecessary steps like: data backups, delivery of backup to accountant, accountant to restore and often upgrade the backed up data, need to make adjusting journal entries rather than simply correct erroneous entries, duplication of journal entries and reconciliations because data is corrected first on the accountant’s backup and again on the client’s desktop software. Not to mention the time wasted trying to figure out which correcting entries were missed or what changes were mistakenly made after closing the year. Other challenges that can be overcome with virtual accounting services:

  • Struggle knowing which account to post an entry to or how to properly add to your chart of accounts
  • Difficulty keeping up with reconciliations or entering credit card charges
  • Inconsistency with postings because posting is performed sporadically when you have extra time
  • Lack of accounting knowledge for proper review of general ledger or posting of adjusting entries
  • Poor data quality that can’t be relied upon for accurate analysis or performance evaluation
  • Numerous adjustments having to be made before accurate tax returns can be prepared
  • Excessive time needed to manage manual processes