A company normally makes a lot of financial transactions and business activities in a given period, say, a day or even a year. Because of the large number of transactions and activities a company makes, it needs to keep track its flow of money. Once the flow is tracked and recorded, the company then analyzes the results. These results will be the basis of making the company's financial statements. Not all bookkeepers are properly trained to interpret these statements, which is why you should always hire a bookkeeper with an accounting degree.
To handle this responsibility, a company needs to outsource an individual or a team that specializes in bookkeeping with a strong accounting background. These people are privy to the company's financial secrets. Without them, companies would probably be crippled. Most people think that bookkeeping and accounting is the same thing. Well, they are not but both are related, just like sales and marketing.
What makes bookkeeping and accounting different is that bookkeeping is the process of recording, classifying, tracking and monitoring financial transactions. Quite simply, bookkeeping is all about maintaining a company's financial transactions. These financial transactions include purchasing, loans, mortgages, and any other activity that involves money. In bookkeeping, the goal is to record and summarize these financial transactions and arranges them into a usable form.
Bookkeeping just a component of accounting. In an analogy, accounting is a tree while bookkeeping is one of its branches. Accounting, on the other hand, involves analyzing, recording, summarizing, reporting, reviewing, and interpreting financial information. The information used by the accounting staff comes from the data provided to them from the bookkeepers. When you have a team of bookkeepers with accounting degrees, the communication becomes seamless, saving you time, money, and headaches trying to deal with a bookkeeper who doesn't fully grasp the bigger picture.
Cloud based accounting systems such as QuickBooks online, have helped accounting and bookkeeping a lot. Although some companies still opt for the manual method (if you know of one who does, tell them to call us asap!), the benefits of using a virtual system for accounting and bookkeeping far outweigh the cost of the software and handing over your bookkeeping tasks to a pro. Through virtual means, accountants and bookkeepers can track, record, maintain, and analyze financial records and summaries in a faster, more accurate, and more efficient way.
Most companies today opt for automated accounting and bookkeeping systems. As its name implies, the program allows all parties involved to automatically update the records. Apps that integrate with the software make maintaining proper records a breeze. This saves business owners precious time and effort and reduces the chances of inaccuracy.
When you outsource your bookkeeping a team that truly understands the complex world of accounting, you can be rest assured your financials are in good hands.
Does your bookkeeper have a degree in accounting? If not, it may be time to re-evaluate if you discover things that don't quite add up. All of The Bean Counters bookkeepers have accounting degrees. Give us a call at 912-376-9918 today, if you'd like to see how we can help save your company time and money.
You may have heard about accounting and bookkeeping services being advertised on television, on the radio, and all over the internet, but haven't really had the chance of comprehending just what accounting and bookkeeping services entail. If you're a small business owner, you've probably attempted to do your own books resulting in frustration and confusion. Most people initially try to handle their own books using a single entry system. This may work in the beginning, but often leads to errors and oversights as the business grows. Read on for a quick look at a few accounting and bookkeeping services we offer and the practical benefits to letting a pro handle your books.
Bookkeeping is the act of keeping track of the financial activities of a person, an organization, or a business. When we use the term financial activity, that basically means any transaction which involves money. The goal of bookkeeping and accounting is to give concerned parties a bird's eye view of just what they, or their businesses, have been spending on, as well as just how much money came in. This leaves an overview of the business's financial health or lack thereof.
There are different types of bookkeeping, each ideal for a type of counting which one wants to occur. For example, let us talk about single entry and double entry accounting and bookkeeping.
Single Entry Accounting and Bookkeeping
As a form of bookkeeping, single account bookkeeping tends to be quite easy to comprehend, and to apply, not necessarily needing the aid of outside services. Single entry bookkeeping is simple and geared for individuals or families who would like to keep track of their expenses. Recording income, recording expenses, and current cash balance are basically the prime aspects of single entry bookkeeping. There's usually one account involved, and no need to categorize. This method is fine to use if you're a sole proprietor offering a service. There's not much to track, however, if you start to grow, things can get tricky and you'll probably want to outsource.
Double Entry Bookkeeping Accounting and Bookkeeping Services
When talking about double entry bookkeeping, the primary bookkeeping record focuses on Revenue and Expense. It allows for a deeper look and is much more comprehensive. It's similar to that of a checking account register, but differs in the sense that single entry bookkeeping allocates the income and expenses to various expense and income accounts (categories). This is when hiring a professional bookkeeper is best. Individuals who are not trained bookkeepers may allocate expenses and income into the wrong accounts. Their cash management may be poor, and they probably don't have the best idea of the big picture. Banks don't like this and not keeping proper track of every penny can hurt a business when it comes time for a loan or line of credit. The average person who is not a professional bookkeeper, also may not know exactly what they're allowed to write off, when specific forms and taxes are due, and how to discern if their business is doing as well as it could be.
To simplify things, hiring a pro to do your double entry bookkeeping stands to be one of the best investments you can make for your business. It differs from single entry in that this is something not everyone could easily (or cheerfully) accomplish.
So there you have it. The difference between two accounting and bookkeeping methods and which one you should be outsourcing. Need help with your books? The Bean Counters are ready to handle all of your bookkeeping needs!
Modernization is the main reason for the evolution and development of numerous things. Businesses have to stay updated. With different modern possibilities, even the smallest companies are redefining the way they conduct business. No longer are multiple in-house employees used for services that can outsourced. Small business owners are realizing the potential for better talent, streamlined systems, boosted productivity, and the money saving benefits of outsourcing bookkeeping.
It may be overrated to say that everything an onsite employee can do, an online bookkeeper can do better and faster, however, this is often the case. This is why most business either small or big scale, are depending on virtual bookkeeping services and online accounting systems.
Business owners should take advantage of bookkeeping services online that are widely available. Transactions are mostly done via the internet which gives freedom to handle receipts, documents, tax forms, and invoices virtually. What is good about online bookkeeping is that, it will lessen the company's burden with tons of paperwork and when the need arises, every single financial report will be there right at your fingertips - stored in the cloud. The bookkeeper, accountant, and business owner can see the same things in real time and be on the same page.
Online bookkeeping services are redefining business for companies everywhere. Through efficient recording, a virtual bookkeeper can easily trace the company's losses and gains. They can clearly predict if the company is having a financial crisis or development through careful monitoring of data being given by the company. And because financial records are updated on a regular basis, it's easier for the business owner to determine how the current financial picture is working out.
An effective accounting and bookkeeping system is often the basis for making or breaking the success and development of any business. Because online bookkeeping services are always available, either day or night, the business owner doesn't have to waste time hiring people and carrying the overhead such as benefits, insurance, unemployment, office space, and equipment. He or she will only need an internet connection to send information and keep track of financial records.
Another good reason why online bookkeeping service is becoming popular these days is the fact that it helps provide information and advise that may greatly affect the company's decisions. Furthermore, business owners can easily acquire sources for capital and bank financing with proper bookkeeping. When the company needs a loan, the first place the bank will look at is the status of the books. Necessarily, it needs to gather all projected statements for the prior and current years. Ensuring your books are in good order and up to date is critical for obtaining good standing with your bank.
A clear financial picture which, online bookkeeping services can offer, will help the business be associated with other investors or companies through firm financial records that will encourage associates and future ventures.
Deriving a budget will be easier with bookkeeping services. Reports will give the owner a clearer view on the business expenditures and will give a genuine forecast on the cash needed. Budget will always speak for the company's stability.
Income tax returns are no longer a burden when you outsource bookkeeping to a virtual company. They specialize in knowing exactly what preparation needs to be done and when. A good financial statement will always result in easier preparation of accurate tax returns and on-time filing. The owner avoids the unnecessary burden of keeping track of changing deadlines, and can avoid being charged for payments which are overdue.
Finally, distribution of profits can be easily attained. Especially if the business is affiliated with corporations or other companies, determining accurate profit distribution is possible.
Each business has unique needs and requirements regarding bookkeeping. Varying corporate structures will require bookkeepers who are on the ball, proactive, and have an eye for catching potential problems before they arise.
The team at The Bean Counters Bookkeeping is proud of our success and we love our clients. Our testimonials speak for themselves, and we'd love to be the ones to help take your business to the next level.
Give us a call today to set up a time to talk about how we can free up more of your time and money!
Outsourcing professional bookkeeping and accounting services saves business owners 40-50% of the money they'd spend on an in-house employee. When you decide to outsource, you no longer have to pay for office expenses, vacations, benefits, and other overhead involved with employees.
We handle more than bookkeeping.
When you team up with The Bean Counters Bookkeeping, we'll provide valuable data and advice on best practices for your specific industry. Our services go above and beyond handling your books.
Our cloud based bookkeeping and accounting cuts expenses in half.
You only pay for the time spent on actual work. Our team of professional bookkeepers who are QuickBooks certified, are both efficient and more than competent. You won't only save time on actual work done, but you'll save money by avoiding costly errors if you were trying to do your books on your own.
We have the latest knowledge on laws and deadlines.
Regulatory changes such as new tax laws and moving deadlines are no longer your concern when you outsource your bookkeeping services to us. We'll keep track of changes and alert you if and when they apply to your business. This includes changes in payroll requirements, hiring laws, and tax filing dates.
The Bean Counters Bookkeeping will give you better insight and understanding of your business.
Think of us as your objective friend keeping an eye on the financial details of your profits and losses, ready to give a helping hand when we see an area that will improve your bottom line. You no longer have to puzzle over confusing reports and strategies that you weren't trained to understand. That's our job and we'll ready and willing to help your business succeed.
Great bookkeepers will provide up to date records.
Your CPA will thank you when your monthly reports are not only accurate, but clean and up to date. This will make the handoff process to your CPA smooth and you can avoid last minute shuffles and stress trying to get everything caught up for important deadlines.
Do you want a solution to all your financing, accounting and bookkeeping problems? If yes, then outsource your bookkeeping services to The Bean Counters Bookkeeping. Our reviews speak for themselves and we'd love to help grow your business as well!