Virtual Bookkeeping: A Quick Guide for Small Businesses

“Virtual bookkeeping” is one of those terms that makes you stop for a second. Because… isn’t almost everything virtual now? We order groceries online, run meetings online, and sign contracts without touching paper. So why does bookkeeping get its own special label?

This guide is here to unpack that. We’ll break down what virtual bookkeeping really is, how to decide if it’s the setup that makes sense for your business, and how to hire a virtual bookkeeper. 

What Is Virtual Bookkeeping?

Virtual bookkeeping is simply bookkeeping done remotely. It usually means working with a freelancer or a company that provides bookkeeping services (like Haven). Everything is done online, so you don’t need someone sitting in your office. At Haven, we’ve helped 450+ businesses keep their finances clean without the overhead of an in-house hire.

The “virtual” part isn’t about a new kind of work — it’s the same bookkeeping you’ve always needed. The term stuck because, not long ago, most businesses still hired local bookkeepers who came onsite or handled paper files. As bookkeeping software became standard, the location mattered less, and the idea of a “virtual” bookkeeper emerged. 

Today, the label is a bit outdated because remote work is the norm across many roles, not just bookkeeping. So when you hear “virtual bookkeeping,” read it as bookkeeping that’s remote by design and powered by the same digital tools your business already runs on.

Should You Hire a Virtual or On-Site Bookkeeper?

Both options cover the same work, like tracking transactions, reconciling accounts, and keeping your books clean. The difference is how that work gets done and what makes sense for your stage of business.

On-site vs virtual bookkeeper

When to hire an on-site bookkeeper

On-site bookkeeping means hiring someone to sit in your office. This can make sense if:

• Your industry processes stacks of paper invoices (e.g., construction or shipping).

• You operate a business that requires daily handling and deposit tracking of large amounts of cash.

• Your workflow depends on paper receipts and handwritten approvals. 

When to hire a virtual bookkeeper

For most modern businesses, virtual is the default. In fact, it's often ideal if:

• You want to avoid the overhead of recruiting, training, and managing another employee.

• You’d like access to a wider, more competitive talent pool instead of being limited to your city.

• Remote bookkeepers don’t carry the overhead of office space, payroll taxes, or full-time benefits, which often makes their bookkeeping rates lower than hiring in-house.

• Your team already runs online (Stripe, QuickBooks, Gusto, Xero, etc.) and doesn’t rely on paper processes.

• Your business is seasonal or project-based, and you need support that can scale up or down without long-term contracts.

• You need tighter security than passing spreadsheets around internally — virtual firms often invest more in encryption and compliance than small teams can.

• You want the option to switch providers if not satisfied, but without the hassle of severance, re-hiring, or retraining.

• You’d rather keep bookkeeping independent from your internal politics or team turnover.

The Drawbacks of Virtual Bookkeeping (and How to Mitigate Them)

Virtual bookkeeping is the default for most startups today, but it isn’t perfect.

Drawbacks of virtual bookkeeping

Context and visibility

A remote bookkeeper only sees what flows through the systems you give them. If a contract isn’t uploaded, a vendor is miscoded, or a personal card is used, they may not catch it right away. 

The fix is to standardize how information enters your system. Use expense tools like Ramp, Brex, or Expensify to capture receipts automatically, and set a weekly reminder for your team to upload missing docs. Even a short monthly review call with your bookkeeper helps catch edge cases before they become problems.

Communication styles

Some founders want quick answers in Slack; others prefer detailed explanations in scheduled calls. If you don’t align, frustration builds fast. 

The solution is to set expectations early: agree on response times (e.g., “Slack replies within a business day”), reporting cadence (monthly close, mid-month check-in), and preferred channels. Treat it like onboarding a new team member — define the workflow before the first month closes.

Consistency and quality control

The virtual market ranges from freelancers to structured firms. A freelancer might disappear for a week; a firm might rotate staff, so you never know who’s on your account. 

To mitigate this, ask upfront about backup coverage, review processes, and team stability. Request to meet your primary contact and their backup, and confirm that a second set of eyes reviews reconciliations before reports go out.

Integration with the rest of your stack

Bookkeeping doesn’t live in isolation. It touches taxes, payroll, and forecasting. A provider who only reconciles transactions leaves you with numbers but no insight. 

The fix is to choose someone who can plug into your stack: Gusto for payroll, Stripe for revenue, Carta for equity, and tax planning tools. Ask how your bookkeeper hands off to tax prep or reporting — a good one will already have that playbook in place.

None of these drawbacks is a deal-breaker, but they highlight why picking the right partner matters. 

What to Look For in a Virtual Bookkeeper

Hiring a virtual bookkeeper isn’t just about finding someone who knows how to reconcile accounts. You’re trusting them with the financial foundation of your business, so the fit matters. 

Here are the areas to pay close attention to when evaluating a virtual bookkeeper:

Experience With Businesses Like Yours

A freelancer who’s great with e-commerce might not be the right fit for a creative agency, and vice versa. Look for someone who already understands your industry’s quirks, whether that involves managing project-based invoices, handling subscription revenue, or tracking subcontractors. Depending on your growth stage, you may even need a full-charge bookkeeper who takes on broader responsibilities.

Comfort With Cloud Tools

A good virtual bookkeeper should already be fluent in the tools your business runs on. QuickBooks, Xero, Stripe, Gusto, and bill-pay platforms like Ramp or Brex should feel second nature to them. They might not be using the same software that you do, but they should be comfortable with at least some tool, so it's not completely alien to them.

Clear Communication Style

Since you won’t be working in the same office, communication matters more than ever. Ask how they update clients, how often you’ll see reports, and whether they’re comfortable with Slack, email, or scheduled calls. The best virtual bookkeepers make you feel like they’re just down the hall, even if they’re miles away.

Reliability and Continuity

A single freelancer might be affordable, but what happens if they get sick, go on vacation, or move on? If continuity is important, consider working with a bookkeeping company that has a team structure. That way, your books don’t fall behind if one person isn’t available.

Security and Professional Standards

You’re trusting someone with your financial data. Make sure they use secure systems, follow proper access protocols, and carry professional certifications or references. A reliable bookkeeper will welcome those questions and have good answers ready.

Virtual Bookkeeping is What We Do Every Day

At Haven, we've handled bookkeeping for more than 450 businesses. Our team combines over 50 years of Big Four experience with modern workflows that keep your books accurate, timely, and stress-free.

What you get with Haven:

• Monthly bookkeeping and reconciliations are always on time

• Categorization of transactions and expense tracking with zero guesswork

• Financial statements you can actually use — P&L, balance sheet, cash flow

• SaaS and startup-specific accounting, including deferred revenue and accruals

• A dedicated bookkeeper backed by CPA oversight for added assurance

• Real-time answers in Slack instead of waiting days for an email

• Integrated support for taxes and R&D credits so nothing falls through the cracks

If you’re serious about growth, stop patching together spreadsheets or gambling on part-time freelancers. Put your finances on autopilot with Haven and finally get the clarity, speed, and support you need.

The best way to start is with a free tax strategy call. In one session, we’ll review your current setup, identify tax credits or savings opportunities you may be missing, and show you how our bookkeeping + tax team works together to keep your finances dialed in.