There are many reasons why accounting is being outsourced more and more by different types of businesses and organizations.
Some may think that using outsourced accounting services is a bad idea because of less control and more costs, but that is a myth that has been proven wrong, especially as cloud-based accounting becomes more common.
In reality, there are greater benefits to outsourcing your accounting services than by organizing your own accounting department or doing your accounting by yourself. We'll go over the benefits of outsourced accounting and allow you to see why it is a popular action that many businesses and organizations are taking.
Using outsourced accounting services can actually save you money.
By outsourcing your accounting needs you do not need to hire employees for their in-house accounting department. This saves you not only money but also time. It costs time and money to find certified employees to operate your accounting department. With outsourced accounting services you don't need to worry about salaries, workers compensation, insurance, or many of the other expenses of having employees. Another great benefit is that you do not have to worry about losing an employee and having to find another in-house accountant to replace the one you lost. The Bean Counters will integrate our services with your own accounting software so that you experience a smooth transition.
You can focus more on the accounting data.
This eliminates having to spend time entering your accounting information and allows you to look at your current situation and make plans for future improvements and developments with the data provided. By being able to maintain your focus solely on payments, invoices and profit and losses, you will be able to spend your time on finding better solutions and maintaining a better relationship with your suppliers and customers.
You have a lower risk of error and problems with your accounting.
It's better to trust your accounting needs with a certified professional rather than trying to do your accounting yourself. Unless you have a degree in accounting, you have a very good chance of making an error. This chance of error is nearly eliminated when you use an outsourced accounting firm that specializes in the field of accounting. These errors can have a negative and dramatic effect not only on your records of what is owed and needs to be paid but also on your current costs and projections related to your profits and losses. By not properly and accurately maintaining accounting records, you run a high risk of failure with your business.
As you can see, outsourcing your accounting needs has proven to provide many benefits. These benefits will not only save you time and money but will also provide solutions to help you grow and expand your business based on the information you receive from your accountant.
Accounting can be a very strenuous task that requires a lot of attention to detail as well as knowledge about the field to have it done correctly. Since accounting can be outsourced so easily and can be done at a lower rate outsourced then in-house, this has proven over time to be the best option. Need a professional team on your side? Give The Bean Counters Bookkeeping a call and let's get your books in order!
There is an art to creating deadlines that work. You want your deadlines to stick so that you can get more done, and be even more amazing than you already are. But, if you tend to underestimate how long something takes, or your skill at doing it fast, you may constantly miss deadlines that you set for yourself or that others set for you. Thankfully, there are ways to ensure that you can set deadlines that stick.
Do The Research
When you approach anything that needs deadlines set, don’t just look at the end result; look at the tasks that take up the work to get to the end result. Understand exactly what each step involves. Find out how long it takes other people to do the task. If you don’t, you can’t make a reasonable deadline.
Test Things Out
When you are asked to do something new and need to set a deadline, try out a small portion of the task to see how long it will take you so you can best make predictions on time. Remember that when someone else is asking you for a deadline or even suggesting deadlines; if they don’t know what it takes, they’re just pulling a date out of the air. You need to do better than that.
Understand the Scope of the Project
Ensure that you ask the right questions about the project so that you know what the true scope is. For example, you're a web designer and someone says, “How much does it cost to build a website?” That leaves a lot of questions unanswered. There is no way to make a deadline with that information.
Start at the End and Work Backwards
Every project has a final deliverable. Start with that deliverable and work your way through all the tasks that need to get done to reach that final deliverable. Make an outline for each project so that you know everything that has to be done. Some people find it useful to make a mind map for each project. Then you can take that and use it to set realistic deadlines that stick.
Break Down Larger Projects
There is much more to a project than the deliverable. There are steps leading up to the end product or end result. For example if you set a deadline to create a new product in 90 days and it requires several steps, you need to set smaller time-frames for each step in order to accomplish that. Now, what steps will that take? The same can be stated about a project like a website. First you need a domain name, then you need to pick colors, then you need to choose design elements, and so forth.
Set Small Deadlines
Once you break down a project into smaller chunks, set deadlines for those pieces of the project. Some things have to be done in a particular order, other things don’t matter. Knowing this helps with assigning and delegating tasks and setting deadlines for them too.
Add Margin Time
There is a law called Hofstadter’s Law which basically says that everything takes longer than you think. So, add in some extra time. Commonly people multiply the time they think it will take by 1.5. However, if you find you are not meeting deadlines, determine the factor you need for your deadlines. It might be two times your initial estimate.
While you want to be impressive as a person, don’t try to do too much at once. Look at your entire schedule. Include free time, sleeping time, family time, alone time, eating, exercise, appointments and so forth into your schedule so that you can be realistic about how much time you have to work on any given project or part of a project.
Creating deadlines that stick is a process that requires some thought. But, once you get into the habit of making deadlines that stick, you’ll be able to get much more done each day. We tend to fill up our time with something - why not fill up your time with activities and actions that are designed to get things done?
When you embark on starting a business, you'll need to decide if you'll be a service-based business or a product-based business (or both). We're going to share some of the pros and cons of each to enable you to make decisions that need to be made. You can run both types of businesses together as well; in fact, this is becoming more an more popular as digital products and courses that complement products are so easy to create.
Both business options offer many pros. Pros like owning your own business, being your own boss, making money from home, doing what you love, serving people you like, and having more freedom to spend with family and friends.
But, how do you know whether or not you should start a service-based business or a product-based business?
The components of a service-based business are:
* You and your skills
Let’s look at the components of a product-based business:
* A product
* You and your skills
Not much different, really. You are in the equation for both - whether you are selling products or services. Both will require sales and marketing and the ability to deliver the service or product on time. Both may require a certain amount of technology and knowledge. In both cases you can outsource a certain portion of the work so that you can reduce your efforts.
Remember, when you outsource, in some ways you are really paying to increase the time you have to devote to a project. If you think of it that way, you’ll be able to outsource more efficiently. You won’t feel like you’re outsourcing because you can’t do it yourself; you’re doing it because you need more time. When you can strategically use other people’s time and skills, you can better your business.
With a product-based business you can typically get someone else to make the product and someone else to do the customer service. Technology will automate the delivery process, and you can simply oversee it and collect the revenue. Thus, you can essentially earn unlimited money outside of the hours it takes to produce them.
With a service-based business you will be required, for the most part, to speak directly to the clients and deliver your service on their deadline. You’ll be trading hours for dollars in many respects. So, in addition to the time factor involved with sales and marketing, and the upkeep of your business, your income will be limited to the number of billable hours you can work on any given day. This can be increased through outsourcing, but you will still need to be intimately involved with the results, which will take your time.
No matter what type of business you choose, one thing remains the same. The need for bookkeeping. If you're embarking on a new adventure and want to make sure your finances are in tip-top shape and need to see where to better allocated your profits, give us a call and let's chat about being your bookkeeping service.
There are no shortcuts when it comes to starting your own business. Launching and operating a new business is all about putting in the time, taking one step further each day than the day before, and above all, being open to learning from everything around you, including your customers. If you are ready to take the entrepreneurial leap, here are seven quick tips for you to consider.
1. Inquire within – It’s passion that builds companies, not just ideas. If you don't have the same feeling about your aspiring venture as you had the first time you fell in love, then consider waiting for the right one.
2. Get to know your customers - Companies serve people. Do you know your customers' needs inside and out? Are you familiar with their pain points? Make learning about your prospective customers your top priority before taking the jump. Let your future customers "co-create" your enterprise. They'll likely be the first ones waiting when you open your doors.
3. Know your market - Do you understand the lay of the land in which you will operate your business? What is your unique advantage? What's your "voice"? If there are other companies offering a similar service in your field, study them closely. Figure out what they are doing right and what you can do better.
4. Hire a great attorney - Nothing substitutes the value of a good legal adviser when launching a business. More important than just about any other team addition, a good attorney will provide the best business education you'll ever get.
5. If you need to hire, hire great - A well rounded, passionate team can overcome just about everything. There is nothing more fun than working with a group of passionate, smart people towards a common goal.
6. Find a bank that loves you - Maybe an old school notion, but there is hardly a more critical relationship in the early days of a business than with one's bank. Don't go for the best-known one, go for the one that loves getting your business. Their support in the early days of your company will go a long way, whether it's with a small credit line, better borrowing terms, etc.
7. Your local government can help - Depending on your business, you will be amazed at how many underused resources exist for new start-ups that are offered by local, city or federal governments. Co-working space, grants, networking events, great introductions - they are often up for grabs.
Make sure to consider these tips if you’re thinking of taking the plunge in starting your own business. You may not think of some of these initially, but they can be a great asset as you’re building your business.
Debt has a way of creeping up on us if we let it. It's important to keep our debt at reasonable and manageable levels, or we could end up incurring insane interest charges and scraping to make our payments. Even for those who manage debt well, unexpected business changes can result in difficulty making ends meet.
When we find our business having problems with debt, the first course of action is to take a look at the budget. Finding ways to cut back on unnecessary expenses can help pay down debts and keep monthly bills current. But what happens when we can't solve our debt problems with budgeting?
Sometimes we need outside help. It's hard to go to someone else when you're having money troubles, but if you don't gain control over your debts, your business will suffer. So it's important to take charge before it's too late.
Some small business owners turn to debt consolidation as an answer to debt problems. They transfer high-interest debts to a lower interest credit card, or they put up the equity in their homes to get the money to pay them off. While these options can provide lower payments, they are not without drawbacks. Closing numerous accounts and putting all of your debt into one account can negatively affect your ratio of debt to available credit, lowering your credit score. And if you use your home equity to secure the money needed to pay off business debt, you're putting your home at an unnecessary risk.
Another popular option for those with debt problems is credit counseling. Credit counseling agencies offer help with budgeting, and in some cases, they will set you up with a debt management plan. A debt management plan involves negotiation with creditors to obtain lower interest rates and lower payments. The debtor makes one monthly payment to the credit counseling agency, and the agent forwards payments to each creditor.
A debt management plan can help you get out of debt faster, but it can also impact your credit. A note is added to your credit report stating that you are undergoing credit counseling. This means that you can't get new credit. However, the notation is removed once you've paid off your debts.
It's also important to make sure you're dealing with a reputable credit counseling agency. Some charge high fees or fail to make payments to creditors on time. There have also been some that were found to be outright scams, keeping the money that debtors sent them to pay their bills with. When considering credit counseling agencies, make sure they're members of the Association of Independent Consumer Credit Counseling Agencies (FCAA), or the National Foundation of Credit Counseling (NFCC). These organizations regulate and monitor member agencies, making sure that they operate legally and ethically.
An overabundance of debt can wreak havoc on our finances, business, and our credit scores. It can also be the cause of undue stress. By seeking help at the first sign of trouble, we can often prevent our debts from spiraling out of control.
The best way to avoid major debt problems is to hire a professional bookkeeper when you start your business so will know exactly where you stand before it gets out of control We'd love to be your solution. Contact us today for a free consultation!