Without a doubt, Bookkeeping is one of the most needed, but time extensive part of running a business. However, having a good accounting team in place is crucial to the health of your business finances. Wasp Barcode Technologies recently ran a study in which they surveyed 393 small business leaders on the most important aspects of running a successful business.
As you can see, accounting ranks as the top needed service. As we've discussed before, it's important to enlist a bookkeeper with an accounting degree so the finances are handled correctly.
If the books of your business aren’t accurate and attended to on a regular basis, come tax time, you're going to have significant problems.
Hiring a competent, full-time, pay rolled bookkeeper is expensive. Most companies are outsourcing bookkeeping services to teams like The Bean Counters Bookkeeping. They know that by outsourcing, they're reaping the benefits on having a professional bookkeeper, without incurring the costs involved with someone on-site.
Let's take a look at 6 benefits of outsourcing bookkeeping services.
1. Save more money
It's significantly less expensive to outsource verses shelling out a salary for an employee to take care of your books. Think about the costs involved with benefits or and spending time on the hiring process. When you outsource bookkeeping, you pay for what you need. That's it.
2. Spend less time
Bookkeeping can be tedious and time-consuming. Why not use that time more wisely by focusing on other aspects of your business instead of in the books?
3. Leverage an expert
When you hire a team of certified bookkeepers with accounting degrees, you don't have to worry about a situation coming up where they don't know what they're doing. This is an ideal way to leverage an expert without paying an arm and a leg.
4. Or, leverage a team of experts
When you work with The Bean Counters Bookkeeping, you're getting a team of dedicated pros working together to make sure your books are correct and in order. The more eyes you have on your finances, the less chance there is of errors and oversights.
5. Financial advice
Not only will a team ensure your bookkeeping won't be inaccurate, they can advise you on how to interpret reports and give advice on situations such as financing, investments, and growth potential.
6. Streamlined systems
We work in the cloud and are up to date on all of the current changes going on with accounting systems. You don't need to waste time staying on top of updates or constantly upgrading to new platforms. Of course, if you prefer to be in the know, we offer QuickBooks training to help you on your journey.
In conclusion, when you decide to outsource your business's bookkeeping, you're making a smart choice. We'd enjoy nothing more than taking some of the burden from you and handling your bookkeeping. Give us a call to see how we can make your life a little bit easier! 912-376-9918
If your small business isn't accurately recording financial transactions, you may be in for a nightmare at tax time. Here are 10 quick tips for all small business owners to ensure their bookkeeping is on track.
1. Use cloud-based accounting and go paperless.
Our favorite cloud based accounting system is QuickBooks. With features that will fit any type of business, Quickbooks the gold standard when it comes to bookkeeping and accounting. Going paperless will save untold hours of time and frustration and allows your business to easily outsource bookkeeping tasks, which saves money.
2. Enlist a second set of eyes on your finances.
Partnering with a bookkeeper who holds an accounting degree is a wise move. They can keep tabs on your payroll and train you on how to handle your books correctly. They can also answer your bookkeeping questions and fix errors that have been made.
3. Never mix personal and business finances.
Keep your personal and business finances separate to make accounting much easier for all parties involved. When personal and business financials start mixing, it can be difficult to keep accurate books. It may make sense to have your business accounts at an entirely different bank if you're worried about grabbing the wrong debit card or check book. Whatever you do, don't make personal purchases with business accounts.
4. Plan ahead for big purchases.
By budgeting ahead of time, big purchases like building or equipment maintenance, inventory, or new office equipment, you'll save time worrying about how to afford them. It's always a good idea to be prepared for the expected and unexpected.
5. Plan ahead for taxes.
If you have a professional bookkeeper on board, you've already taken a step in the right direction. Make sure you're planning ahead for tax time by setting aside money each month that's allocated specifically for taxed. You don't want to be hit with an unexpected tax bill that you can't afford.
6. Pay your invoices on time.
Unpaid invoices can not only affect your credit, they can create issues at tax time. Maintain good records of receipts for payments and stay organized to make sure you're on top of your invoices.
7. Reconcile monthly and keep an eye on your accounts.
By reconciling monthly, you can spot mistakes and correct them immediately. Keeping an eye on all of your business accounts by reviewing frequently will assure errors won't get out of hand. Hate reconciling? Outsource to a bookkeeper!
8. Never use cash.
It may be tempting to use cash occasionally for business purchases, but it makes bookkeeping difficult. When you only use a credit or debit card, you have multiple records available proving exact purchase amount(s), as well as the time, and date of purchase. This makes like easier for everyone involved with your small business bookkeeping.
By consistently implementing these 8 quick bookkeeping tips, you'll be spending less time in your business and more time ON your business. For comprehensive bookkeeping solutions for your small business, contact The Bean Counters Bookkeeping.
Many small business owners are overpaying on State and Federal taxes because they're trying to handle their own bookkeeping which lead to mistakes.
Here are a few tips for making sure you're not overpaying or filing incorrectly on your tax returns.
1. Many small businesses overpay on state and federal taxes because they don't have their bookkeeping software set up correctly. Or, they're not entering expenses, sales, inventory, and/or payroll properly. Little mistakes and errors here and there really can add up and throw off the reports used when filing tax returns. To avoid costly errors, outsourcing the bookkeeping tasks for your business is one of the best things you can do. A professional bookkeeping service not only tracks every penny, but will provide accurate reports to your accountant.
2. Small businesses make many transactions over a year that often get overlooked if a professional bookkeeper is not keeping track of everything. If you forget to track your smaller purchases, overdue invoices, and record your milage properly, you're going to be overpaying on taxes. The Bean Counters Bookkeeping team keeps track of paperwork for you throughout the year. It's as easy as snapping pictures of your receipts or forwarding an email receipt. We'll make sure you're not overlooking important deductions.
3. Outsourcing your business's bookkeeping to a professional cuts down on stress. If you've put off handling your books until tax season, you're going to be playing catch up and feeling under pressure. If you're stressed, you're more likely to rush and make mistakes. You may be overlooking past errors in your books as well, which a professional bookkeeper can easily identify & fix before getting you caught up and prepared for tax time.
4. Finally, hiring a CPA to prepare your state and federal tax returns is another good idea to avoid overpaying on taxes. These individuals are specifically trained to be in the know of tax laws, changes, and idiosyncrasies most people aren't aware of. Having a second set of eyes on your books is a benefit as well because trained accountants and bookkeepers can provide advice on to better your business for the future.
If you're sick and tired of handling your own books, or need the assurance and confidence that your bookkeeping tasks are being handled correctly, we'd love to work with you. Give us a call for help! 912-376-9918
Start up companies aren't trying to do everything at once, often with one or two people taking on the roles and responsibilities of many jobs. They don't want to outsource until it's critical. Especially bookkeeping.
With the options available online such as QuickBooks, most entrepreneurs think they can handle the books by themselves despite the risk of not getting it right. They are risk takers by default, but are they spending too much time on the details of their finances instead of growing the business? Probably.
As a start up grows, bookkeeping and accounting will become more and more complicated. The business owner who starts out doing his or her own books quickly discovers that a bookkeeper would have done a much better job and saved them untold hours and dollars.
When should a business owner start outsourcing their bookkeeping and what do they look for?
Should I hire an accountant or a bookkeeper?
A competent bookkeeper handles daily hand-ons transactions such as ensuring paperwork is filled out correctly, invoicing, and bill paying. They also keep track of a company's expenses will ensure every penny is accounted for, entered into the bookkeeping software and correctly recorded. This is crucial for preparing a business for tax season and easy creating accurate reports to investors and creditors. A bookkeeper will take all receipts and show exactly how much is going out, and how that compares to the budget and makes sure payments aren't missed or receivables aren't outstanding.
On the other hand, an accountant takes a look at the macro view of the company's finances and provide advice on strategy. Sometimes these duties can be handled by a bookkeeper if they have a CPA or accounting degree. They can give profit and loss statements, file taxes, and "kill two birds with one stone."
An accountant can become a CFO after tax time by strategizing with the owner on moving forward with their present financial situation.
When should I hire a bookkeeper?
Right away. When a start up is in the throws of getting off the ground, the last thing they should be spending time on is bookkeeping. Then, after things settle down a bit, the owner is prepared to take a closer look at what comes next. The books have been nurtured and taken care of from the beginning and there is an accurate view of exactly what's been going on. However, if current books are a mess, it's even more important to bring someone in to straighten them out before the situation gets worse.
Accountants can be utilized during tax time(s) and when making a big decision on securing a loan or line of credit.
Shouldn't I hire an in-house, on-site employee?
Unless your business is making more than $1 million, you will be wasting money on hiring an onsite bookkeeper. There's not enough work to justify that. The Bean Counters Bookkeeping team works with small business owners already established, as well as start ups and all have accounting degrees. We can see the micro and the macro of your business and want to partner with you in growing your business. Give us a call if you'd like to save time, money, and frustrations!