Running a business is more than just selling products or services. A big part of it is managing the finances. While perhaps not the most appealing task, it plays a vital role in maintaining seamless operations.
Imagine being a startup founder finally able to breathe instead of wrestling with spreadsheets, or a seasoned business owner who actually files invoices and payroll on time. That’s the kind of freedom the right financial help brings.
It’s amazing the difference a good virtual accountant can make. Forget the image of dusty bookkeepers in back offices. These are sharp professionals who bring financial clarity to your business, wherever you are, using smart tech and serious skills.
According to Forbes, outsourcing accounting and financeis more prevalent because of workforce, cybersecurity, and technology trends. It even shared data from Robert Half, which revealed that 91% of executives are having a hard time finding skilled finance and accounting professionals.
So, tapping into the virtual labour pool could be your company’s only way to get the expert help you need. Let’s break down why hiring a virtual accountant could be one of your smartest business decisions
Table of Contents
What is a Virtual Accountant?
A virtual accountant is a qualified accounting professional who provides remote financial services. They handle tasks like bookkeeping, tax preparation, payroll, and financial reporting.
You’re still getting someone who has the same (if not more) level of expertise compared to an in-house accountant. The good thing is that you can take advantage of their skills without the extra costs and without needing them to be with you physically.
Thanks to cloud-based tools like Xero, MYOB, and QuickBooks, virtual accountants can manage your finances in real time, from anywhere. They’re ideal for businesses that value flexibility, speed, and tech-driven solutions.
Virtual Accounting vs Traditional Accounting
When it comes to comparing a virtual accountant versus a traditional accountant, you’ve got qualified professionals handling your money either way.
Simply put, here’s their main difference:
With traditional, you’re looking at going to their office for meetings, the kind of setup where you drop off paperwork and see them face-to-face. Some businesses really like that personal touch.
Then there’s virtual accounting. They do the same services, but they do it all online. You’re usually talking through emails and video calls. You’d also use online portals for sharing documents, usually cloud software. It’s a more digital way of working together.
7 Key Services Offered by a Virtual Accountant
We’ve briefly mentioned some of the services online accountants can provide. Here’s a more detailed list of what they can manage:
- Bookkeeping– Daily transaction recording and ledger maintenance.
- Payroll Management– Processing salaries, superannuation, and STP reporting.
- Tax Preparation and Filing– BAS, GST, and end-of-year tax returns.
- Accounts Payable and Receivable– Tracking invoices, bills, and payments.
- Financial Reporting– Monthly and quarterly reports for cash flow, P&L, and balance sheets.
- Budgeting and Forecasting– Financial planning based on current trends and data.
- Compliance Management– Staying up to date with your local regulations and reporting requirements.
7 Benefits of Hiring a Virtual Accountant
If you think hiring an in-house accountant is your only option, think again. Here’s why more businesses are switching to virtual accounting support:
Cost Savings
No need for office space, no extra equipment to buy. Virtual accountants often have lower overhead because they work remotely. That can translate to a lighter bill for you. It’s like getting the same quality coffee but at a slightly less eye-watering price.
Convenience
With a virtual accountant, location isn’t an issue. You can connect from anywhere, share documents online, and get the financial insights you need without having to schedule physical meetings.
This also means your organisation saves time, which, as we all know, is an unrenewable resource.
Access to Expertise
Suddenly, your labour pool isn’t limited by geography. You can find a remote accountant who specialises in your specific industry, someone who really gets the nuances of your business, even if they’re on the other side of the country (or even halfway across the world).
Agile Financial Support
When your business hits a growth spurt, you’d naturally need more detailed financial reports, maybe some forecasting, or help navigating new tax complexities.
An online virtual accountant can often ramp up their services much faster than you could hire and train a new in-house team member.
Conversely, if things slow down a bit, you can typically adjust their level of support without the long-term commitment of a full-time employee. You would have a financial firepower match your business’s current stage, adapting with you in a way that traditional setups sometimes can’t.
Tech-Powered Insights
Virtual accounting services usually go hand-in-hand with cloud-based software. This means a lot of the tedious, time-consuming stuff, like data entry, invoice tracking, and generating basic reports, can be automated.
You’re not waiting for someone to manually compile spreadsheets. You’d be getting real-time dashboards and insights into your financial health.
This frees you from being buried under paperwork and lets you seewhat’s happening with your money, allowing for faster, more informed decisions.
More Time for Strategic Planning
Let’s be real, most entrepreneurs didn’t start their businesses because they have a deep passion for bookkeeping. Hiring a virtual accountant frees you and your core team up to concentrate on your products, your customers, and your vision.
Improved Security
Reputable virtual accounting firms understand the importance of data security. They often employ robust measures to protect your sensitive financial information, sometimes even exceeding the security protocols of a small in-house setup.
Tips on Choosing the Right Virtual Accountant for You
To get the most value, choose a virtual accounting solution that understands your industry and growth stage. Here’s how to find the right fit:
- Check Qualifications. Look for CPA or CA certifications.
- Review Their Tools. Do they work with your current accounting software?
- Ask About Their Clients. Have they supported businesses like yours?
- Assess Communication Style. Are they proactive? Do they explain things clearly?
- Understand Their Fees. Get a clear scope of work and pricing structure.
Cost of Hiring a Virtual Accountant
Here’s a salary comparison of how much an accountant costs if they were located in Australia, the US, and the Philippines (outsourcing-heavy destinations):
*Rates are indicated in USD as of April 2025 using data from Talent.com.
| Country | Australia | United States | The Philippines |
| Average Monthly Salary* | $7,917 | $5,833 | $617 |
Compared to the cost of hiring a full-time accountant onshore if you’re based in Australia or the US, going virtual or offshoring to countries like the Philippinesis often the more economical choice.
This is especially true if you’re an SME or startup that can’t afford to pay around $95,000 a year if you hire in Australia or $70,000 a year in America.
But cheaper doesn’t have to mean “lower quality.” That’s an outdated narrative, and one that doesn’t hold up in the current state of our global workforce.
In fact, countries like the Philippines have built entire sectors around delivering high-quality, English-proficient professional services to international clients. Their workforce isn’t just affordable. It’s experienced, tech-savvy, and trained to global standards.
If you approach it strategically, offshoring a virtual accountant to cost-effective locations can be a win on both quality and cost.
Virtual Accountants: The Modern Solution
Hiring a virtual accountantisn’t just practical. It’s one of the many ways modern businesses can stay focused. When you don’t have to worry about the numbers, you can give your energy to the things that grow and drive your organisation.
Plus, the best remote accountants don’t just file reports. They help you understand what your business is doing, why it’s doing it, and where it might be going next.
For growing teams and time-poor founders, that clarity matters. It lets you make smarter decisions without second-guessing every transaction.
You don’t need to do everything yourself. You just need someone who works like they’re part of your team. A virtual accountant can be exactly that.
FAQs
What does a virtual accountant do?
They’re like your regular accountant, but they work online, handling your bookkeeping, payroll, taxes, and financial reports.
Is hiring a virtual accountant safe?
Yes. Reputable service providers that offer virtual accounting solutions use encrypted software and follow strict compliance standards to keep your data secure.
How do I communicate with my virtual accountant?
Most remote accountants communicate through video calls, emails, and shared dashboards. This could be tools your business already uses, like Slack, Zoom, and Asana.
Can a virtual accountant work with my existing systems?
In most cases, yes. Many virtual accountants are skilled in Xero, MYOB, QuickBooks, and other popular accounting software.
Is a virtual accountant suitable for small businesses?
Absolutely. In fact, virtual accountants are often more cost-effective for small businesses than hiring a full-time, in-house accountant.