What is virtual accounting?
Virtual accounting means your accountant works remotely instead of at your office. You upload sales and purchase bills, expense receipts and bank statements to a shared folder, an app or the accounting software. A dedicated team then records them, reconciles your bank, and handles the filings that depend on the books.
For most small businesses it replaces a part-time accountant who visits once a week. The difference is that the work happens continuously, and you can see your books at any time.
What a virtual accounting service should include
- Bookkeeping: sales, purchases and expenses recorded in Tally, Zoho Books or similar.
- Bank and payment reconciliation every month.
- GST: GSTR-1 and GSTR-3B, with input tax credit matched against GSTR-2B.
- TDS: monthly deposits and quarterly returns.
- Payroll: salary computation, PF, ESI and professional tax, if you have staff.
- Monthly reports: profit and loss, receivables and payables ageing, cash position.
- Year-end support: finalising accounts for audit and the income tax return.
Ask which of these are in the base price. GST and TDS filings are often billed separately.
Who it suits
- Startups and small businesses without a full-time accountant.
- Businesses with branches or warehouses in several states, which have a GSTIN in each.
- Owners who want monthly numbers, not just year-end accounts.
- Companies whose part-time accountant left and whose books are now behind.
It suits a business less if it needs someone physically handling cash or inventory every day. Those tasks stay in-house even if the books move online.
Legal rules your records must still meet
- A company may keep its books electronically, but they must stay accessible in India, and the server details must be reported to the RoC. Books must be preserved for 8 years.
- GST records must be kept for 72 months from the due date of the annual return for that year.
- Professionals and businesses above the income tax thresholds must maintain books under the Income-tax Act.
A good provider builds these into its process, with backups, access controls and a confidentiality agreement.
How to choose a provider
- Who exactly will handle your books? Ask for a named accountant, not a ticket queue.
- Which software will they use, and do you own the data if you leave?
- What is the monthly closing date, and when will you get reports?
- Are GST, TDS and payroll included, and what happens when a notice arrives?
- Do they have qualified CAs reviewing the work?
TaxQue's accounting and bookkeeping service covers books, reconciliation and monthly reports, with GST return filing and TDS returns available alongside.


