[Question] What exactly does "virtual book keeping" involve?

I have been offered an opportunity to increase my client base if I took on book keeping for clients.

I am skeptical as to taking on a skill that I'm not overly familiar with - however, if there are clients sitting waiting for me, it kinda makes me think that it is something to consider, at least.

So my question is, what exactly does book keeping for clients involve??

I mean, I take care of my own finances (including the GST side of things), so surely it's not much more than that?

Thanks,
Deb

Hi Deb,
I know it's tempting when you're looking for clients, but bookkeeping for businesses is much different than keeping your own personal finances. Many times bookkeeping for clients can include payroll, taxes and more.
I have taken several accounting classes in the past, understand the credit/debit balance system and still wouldn't dream of offering it as a service.
Of course, if you have training and/or experience in your background then it may be an option.

I'm with Tina on this one. You really should have a strong background in bookkeeping or accounting to offer this as a service. I don't even do my own books, I hired another VA who specializes in it to do mine for me.

Bookkeeping is about the one service that I think I would have business insurance for to insure I would be cover in the event of any financial liability that might come from any errors.

Deb,

I am a bookkeeper, and even I say it's hard. Not to discourage you but, it isn't just adding up the numbers. You have to make sure that not only are transactions recorded (cash sale, purchase of computer for office, toys for inventory) but you need to make sure they go into the correct ledgers. That's where the hard part comes in.

If you want to take a look Simply Accounting has a great trial offer. The software is limited but, it comes with a sample company for you to play around with. Just looking at that may help you decide.

I took a certificate course from my local college, did most of it on line. I managed to complete it in 9 months but, that was with taking 5 of the courses at once, and working on them for about 4 hours a day, every day. That will eat up a lot of time.

Hope this helps.

Kim.

I'm with the others here. You need to have training to do accounting/bookkeeping - it's not just something you dive in and understand. And understanding is vitally important, as is accuracy.

EX: Knowing how debits and credits post to the "flow" of AR, AP, GL, PR, Financial Reports, etc. is vital. Each transaction has both a debit and an equal credit and is called "double-entry accounting." In the States we have GAAP (Generally Accepted Accounting Principles) that are rules that one must abide by for keeping business books. But no matter what country you are in, debits and credits are still used the same way, although the US uses GAAP as a standardized way of reporting financial statements.

EX: Whether one uses a debit or credit to increase or decrease an account depends on the normal balance of the account. Assets, Expenses, and Drawing accounts (on the left side of the equation) have a normal balance of debit. Liability, Revenue, and Capital accounts (on the right side of the equation) have a normal balance of credit.

I could go on and on. Let's just suffice it to say that getting accounting training is important before attempting to do accounting/bookkeeping.

Deb, if you are interested in doing this, please do pursue some education and go for it (most community colleges offer an accounting course). It can be highly rewarding!

Hi girls,

Thanks for your input, much appreciated. I was always, as I said, skeptical about taking something like this on. I take care of my own finances for my business, so just kinda wondered what clients expected you to take care of if you were doing their 'book keeping'.

But to be honest, I think taking care of my own is enough lol Whenever I have a new idea, or an opportunity arises, I always focus on how it makes me feel. If it's a nervous, or excited feeling, then I usually go with it.... but when this came up, I didn't feel nervous, excited or anything - I felt apprehension and a slight stress. So that tells me it's just not right for me. And I'm okay with that

Thanks again for your input xo

I'd agree with everyone else here. I don't offer bookkeeping as I have no idea or background but I do refer bookkeeping requests to a local bookkeeper. If you do that perhaps you can mutually refer to each other when clients request certain work so it would be beneficial to you both in the long term.

Lynne

Another thing to consider is to help another bookkeeper get prepared. You could scan invoices or documents into their system. I would have to agree if you don't have the background stick with the administrative. A client is most likely looking for someone with experience. So just by offering it isn't going to bring in new clients.

I wouldn't take it on - certainly not without any training

Wendy (of Ian & Wendy - Business Cornerstone Services) here...

I have a BSc in Accounting and have done every job from bookkeeper to CFO in the last million years (or so it seems) so if you need any guidance (or want to outsource) let us know.

2+2= how many...?!

2+2= whatever you want it to be sir.

Interesting thread. Thanks to everyone for sharing!