Virtual assistant in normal parlance is an independent contractor or entrepreneur providing technical, administrative, functional or creative assistance services by using the latest electronic and technological gadgets such as fax, phone, and internet technologies. Hiring virtual assistant is now a necessity rather than a demand due to fast-paced business activities. The main cause of hiring a virtual assistant is cost reduction to the client in the form of office infrastructure, saving in hiring employee-hiring costs, other fixed, and variable costs needed for running a business organization.
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Office space forms one of the major costs for any organization that takes away about sixty to seventy percent of the budget. Using the services of virtual assistants reduces this burden from the shoulders of the entrepreneur or organisation running their businesses. The other reasons for hiring a virtual assistant are:
1. Competitiveness is enhanced: Hiring virtual assistants eliminates the need for recruiting candidates as employees for doing the specific tasks. Recruitment costs are increasing day by day with the rise in living costs and the organizations are required to consider the social security costs of their employees. Virtual assistants come at a much cheaper price than the budget allocated to the employee benefits. Moreover, elimination of recruitment procedure for the specific job being delegated to the virtual assistants saves lot of time and business expenditure in the form of medical allowance, salaries, gratuity and other benefits needed to be provided on the recruitment of candidates as employees.
2. Business accounting is simplified: By hiring the services of virtual assistants, a lot of accounting work is reduced that arises due to the employee recruitment. There is no need to maintain accounting books or data pertaining to employees’ salaries, medical allowances and other costs incurred by the organization. These costs also include transport costs, overtime advances etc. On the other hand, virtual assistants are paid only for the actual time they have worked without taking into account unlike other costs related with overtime, medical allowance, insurance that are required to be paid to the employees.
3. Payment of Taxes gets minimized or reduced: The payroll taxes do not apply to virtual assistants, as virtual assistants are not on the rolls of the client organization. The client organization is not required to pay taxes under SUTA (State Unemployment Tax Authority) or FUTA (Federal Unemployment Tax Act). Thus, it reduces tax liability of the organizations and that in turn is reflected in the balance sheet of the concerned organization. These are some of the reasons for hiring the virtual assistant services.