How To Build and Grow A Virtual Accounting Firm

Benefits of a virtual firm

Going virtual comes with some undeniable benefits. Here are the main ones:

• Low overhead costs. Say goodbye to renting and maintenance costs of an office.
• Low startup costs. Startup costs for an accounting firm typically run from $2,500 to $25,000, depending on your setup. All you need to go virtual is a computer, online access, and accounting software.
• Larger client and employee base. When acquiring clients or recruiting new talent, you’re no longer bound by geography.
• No more commuting. Getting to and from the office every day can add up to hours a week. Now you can dedicate this time to growing your firm or working on your guitar picking technique.

What’s the difference between remote, virtual and cloud accountants?

There’s no difference! Virtual accountants are also interchangeably called remote or cloud accountants, but as Shakespeare said, what’s in a name? Virtual, cloud, and remote all mean the same thing. The important thing is virtual firms are different from brick-and-mortar firms and require a mindset adjustment and a change in old habits.

Here are some steps to ensure your virtual firm is on the right track.

Keep it simple for your client

Your client came to you because they want you to make things easier for themselves. It starts with onboarding. Create an onboarding process that is straightforward, coherent, and as short as it can be without compromising your professionalism and their needs.

Set expectations and put them on paper

From day one, your client has to understand what services they’re getting, what the fees are, and their responsibilities when working with you. And it definitely should be in writing to prevent any future misunderstandings.

There’s nothing more frustrating for accountants than having to deal with scope creep, and there’s no greater adversary to client retention than frictions and conflicts on who-does-what. An ironclad engagement letter helps to solve both issues.

Use tech to help with onboarding

Onboarding software helps you start every client relationship the same reliable way. It:

• Simplifies your client’s experience and makes you look more professional.
• Helps with the initial data collection.
• Streamlines the process and saves you time.
• Automates parts of the process (like sending out reminders).

Different accounting client management software offer onboarding solutions, like Ignition and Karbon. Some apps also focus on the proposal and engagement letter stage, like Goproposal. With a little research, you’ll find the onboarding software to fit your needs best.

Start from your website

Your website is one of the most powerful tools you have for marketing and client acquisition. It’s your online storefront, where potential clients learn about you, your abilities, and its services.

Naturally, it would be best if you made it clear that you offer virtual services. But the “how” is just as important as the “what”. Clients want to know how it will work and what to expect from you, especially those who are new to virtual accounting.

Take Latitude Bookkeeping’s website as an example. One of the (many) reasons it’s great is because it explains the process of when a client starts working with them. Clients can also schedule a meeting on the website — no need to call, email, or fill out an online form — just click on a calendar date and schedule a meeting. The underlying message is brilliantly clear — “we’re going to make your life easier in any way we can”.

That’s what your website should be about: not only an explanation but a demonstration of how you provide your services.

Make online marketing a priority

Brick-and-mortar firms rely heavily on geographic proximity when they’re trying to acquire new clients. Virtual firms are free from this barrier. However, it means that a shift of focus from geography-based to online marketing is in order.

Building an effective online marketing strategy is a broad and complex subject that requires expertise, and you should consider getting a pro to do at least some of the heavy lifting for you. But there are some basic steps you can do to get started without a lot of prior knowledge:

• Increase your online presence. For example: open a Facebook page, get listed as a business on Google, and participate in discussions on social forums dedicated to business owners seeking financial and accounting advice. Don’t forget other social media platforms as well—here are some of our best tips on how to use Instagram.
• Maintain your activity and engagement. The more you establish your online presence, it’s more likely people will reach out, comment, and interact. Respond promptly, politely, and comprehensively to interactions. It’s an integral part of your marketing efforts and directly impacts your brand’s reputation.
• Register to online directories. Online professional directories are a common resource for business owners looking to find an accountant. Quickbooks, Xero, and Gusto all have well-established directories and are the perfect place to start.
• Know your audience’s platforms. Different types of business owner demographics use different types of social media. Restaurants are strong on Instagram. Designers have a larger presence on Pinterest. If you have a specific niche you’re trying to establish, you can focus your efforts on the social platforms relevant to that niche.

Learn, learn, learn

The topic of online marketing is far too broad to cover in one section of an article. It’s also dynamic and changes all the time. The more you learn about it, the better results you’ll get in marketing your firm. Here are some helpful resources to start with:

• An online course from AICPA on marketing (that also earns you a CPE credit!).
• An article on digital marketing for accounting firms.
• A recorded webinar from Insightful Accountant on digital marketing and acquisition basics for accountants.

What is a virtual accounting firm?

A virtual accounting firm serves clients remotely, using cloud tools instead of in-person meetings. It handles the same work as a traditional firm, just from anywhere.

What does a virtual accountant do?

A virtual accountant manages tasks like bookkeeping, tax prep, payroll, and financial reporting for clients online. They also advise clients on cash flow and business decisions.

What’s the difference between a virtual accountant and an online bookkeeper?

A bookkeeper records daily transactions, while an accountant analyzes those records, prepares taxes, and offers financial guidance. Both can work fully online.

What tools does a virtual accounting firm need?

A virtual firm needs cloud accounting software, secure document sharing, and a connected bill pay and invoicing platform. Together, these keep client work accurate and organized.