A virtual accountant does everything a traditional in-house accountant does — bookkeeping, GST filing, payroll, bank reconciliation, financial reports — but works remotely. You never meet them in person. They access your accounting data, process it, and deliver results online.
The concept has been around for years but became mainstream after 2020. Today, thousands of Indian businesses use virtual accountants as a cost-effective alternative to hiring in-house accounting staff.
What Does a Virtual Accountant Do?
The scope of a virtual accountant's work depends on what you need. Most offer some or all of the following:
- Bookkeeping — recording all financial transactions in your accounting software (Tally, QuickBooks, Zoho Books, etc.)
- GST filing — GSTR-1, GSTR-3B, ITC reconciliation, e-invoicing
- TDS compliance — TDS deduction calculation, challan payment, TDS returns
- Payroll processing — salary calculations, PF, ESI, professional tax, payslips, Form 16
- Bank reconciliation — matching bank statements to accounting records
- Financial reporting — P&L, Balance Sheet, cash flow, MIS reports
- Accounts payable/receivable — invoice tracking, outstanding management
- ITR preparation support — providing data to your CA for income tax return
Note: A virtual accountant is typically not a Chartered Accountant (CA) unless specifically stated. For tasks requiring a CA's digital signature (filing ITR, audit certificates), you still need a CA. Virtual accountants handle the execution and data preparation; CAs handle statutory signing.
Virtual Accountant vs In-House Accountant vs CA
| Virtual Accountant | In-House Accountant | CA Firm | |
|---|---|---|---|
| Cost | ₹3,000–₹15,000/month | ₹15,000–₹40,000/month | ₹10,000–₹50,000+/month |
| Availability | Remote, scheduled | Office hours, on-site | For compliance only |
| Expertise | Day-to-day accounting | Day-to-day accounting | Tax, audit, advisory |
| Scalability | Instant | Hire/fire process | Limited |
| Tally expertise | Specialised (if Tally-focused) | Varies | Varies |
| ITR filing | Data preparation only | Data preparation | Full filing + sign-off |
| Lock-in | None (monthly) | Employment contract | Annual retainer |
How Much Does a Virtual Accountant Cost in India?
Pricing varies significantly based on transaction volume, services required, and the provider's tier.
| Service Level | Monthly Cost Range | What's Included |
|---|---|---|
| Basic bookkeeping only | ₹2,000–₹5,000/month | Data entry only, up to 500 entries |
| Bookkeeping + GST | ₹6,000–₹12,000/month | Data entry + GSTR-1/3B filing |
| Full accounting | ₹10,000–₹20,000/month | Everything above + payroll + reports |
| Enterprise | Custom | High volume + custom workflows |
Compare this to an in-house accountant salary of ₹15,000–₹35,000/month (plus PF, ESI, office space, equipment) — the savings are substantial.
How Virtual Accounting Works (Step by Step)
1. Onboarding
A good virtual accounting service starts with an onboarding call — typically 30–60 minutes. They learn your business, your existing accounting setup, your chart of accounts, and your specific requirements. An NDA is signed before any data is shared.
2. Document sharing
You share invoices, bank statements, payroll data, and other source documents. This is done via:
- Encrypted client portal (most professional option)
- WhatsApp (most convenient for small businesses)
- Email or Google Drive shared folder
Most businesses develop a monthly routine: send all documents by the 5th, receive processed books by the 12th.
3. Processing
The virtual accounting team records all transactions in your accounting software. For Tally users, this means entries are made in your Tally company (or a mirrored copy that is then merged with your data). AI-powered tools and multi-layer review catch errors before delivery.
4. Delivery and review
Completed accounts are delivered as a Tally backup, Excel report, or PDF — depending on your preference. You review, request any corrections, and approve. Professional services offer free revisions within 7 days.
5. Ongoing support
Your assigned specialist is available for questions, ad-hoc reports, and any issues that arise during the month. This ongoing relationship means they learn your business over time and get faster and more accurate.
How to Choose a Virtual Accountant in India
The quality of virtual accounting services varies widely. Here are the non-negotiable criteria:
- NDA as standard practice — never share financial data without a signed NDA
- Certified specialists — for Tally work, look for TallyPrime Certified Professionals
- CA supervision — an experienced CA should oversee the team's work
- Explicit accuracy guarantee — look for 99%+ with free correction policy
- Data security — 256-bit encryption and ISO 27001 certified infrastructure
- Transparent pricing — based on transaction volume, not vague "package" pricing
- No lock-in — monthly contracts with easy cancellation
- References or reviews — ask for client testimonials or case studies
Red Flags to Avoid
- Refuses to sign an NDA
- No clear accuracy guarantee or revision policy
- Vague about their team's qualifications
- Requires long-term contract upfront
- No secure document sharing method (just regular email)
- Unusually low pricing with no explanation of what is excluded
- No dedicated point of contact (just a generic support email)
AutoTally: Virtual Tally Accounting for Indian and International Businesses
AutoTally is India's professional Tally data entry and accounting outsourcing service. Our team of TallyPrime Certified Professionals, supervised by practicing CAs, handles your Tally bookkeeping, GST filing, bank reconciliation, payroll, and financial reports — all remotely.
We serve businesses across India, UAE, Australia, and the USA. Starting at ₹5,000/month for 500 entries. No setup fees. No lock-in. 30-day money-back guarantee.
Get a free quote today — we respond within 24 hours.