2020 was the year many accounting firms in the UK Remote Accounting Support. Many firms had to deal with excessive workloads and staffing shortages. A lot of these accounting firms found solace in virtual accounting companies. These arrangements proved to be beneficial to accounting firms in the UK in terms of flexibility and cost. Here’s a rundown on how virtual bookkeeping service providers continue to help accounting firms in the UK overcome the countless challenges in today’s accountancy sector.
What is a Virtual Accounting Company?
A virtual accounting company, as the name suggests, operates virtually. Since the pandemic, people have become accustomed to the idea of Remote Accounting Support. Virtual accountants also work remotely. In fact, they’ve been working remotely and helping offshore clients long before the COVID19 pandemic forced everyone to start working indoors. However, their popularity surged during the pandemic as many accounting firms in the UK were severely understaffed and under-resourced.
The leading virtual accounting companies hire experts in accounting software tools. These experts provide remote accounting and bookkeeping support to foreign clients using the best accounting software programs such as QuickBooks, Xero, etc. More importantly, these companies offer customized packages to accounting firms in the UK and other parts of the world. Their flexible pricing plans allow accounting firms to delegate large amounts of work without worrying about the costs.
Why Do Accounting Firms in the UK Rely on These Companies?
Accounting firms in the UK were facing a myriad of challenges long before the COVID19 pandemic. Hiring high-quality accountants are very difficult. Most accountants in the UK demand heavy salaries. Small-scale accounting firms can’t afford to pay such large salaries. Plus, the best accountants working in small-scale firms are regularly scouted and lured away by larger firms. As a result, during the pandemic, many accounting firms in the UK were severely understaffed.
By partnering with offshore accounting experts, these firms were able to –
Save Recruitment Fees
The recruitment process alone can cost accounting firms up to £30,000 per accountant. When they partner with offshore accounting firms, they receive instant access to highly qualified accountants. These accountants can easily perform important accounting tasks over the internet.
- Invoicing clients
- Preparing bank reconciliations
- Payroll management
- Preparing month-end journals
- Preparing accounts receivable and accounts payable reports
- Multi-currency accounting
- Cash flow management
Realistically, there’s no need for accounting firms in the UK to avoid any work or client demand, as long as they have qualified virtual accountants on their payroll. Hence, when the demand for Remote Accounting Support services increased in 2020, firms with offshore and virtual accounting experts were able to rise to the challenge.
Flexible Pricing
Hiring one offshore virtual accounting expert is at least 40% cheaper than hiring an in-house accountant from the UK. Plus, top virtual accounting firms offer flexible package deals. Accounting firms can hire them on cheap monthly or weekly contracts. Pay them only if their services are helping the firm.
Workload Management
Virtual accounting experts can handle all the mundane tasks that accountants in the UK have to deal with. Be it payroll management or monthly accounts preparation – coping with excessive workloads becomes much easier when you have a reliable virtual partner helping you every step of the way. As a result, several accounting firms in the UK were able to take on more work during the pandemic.
Outsourcing accounting responsibilities to reliable virtual accounting firms is extremely beneficial for understaffed accounting firms in the UK!
