UptoDate Bookkeeping

Payroll Outsourcing: How it Can Help Your Business

Posted on September 30, 2021 by udtadmin - Payroll Services

Even though payroll is time-consuming, it plays an essential role in every operation. Businesses of all sizes opt to outsource their payroll functions to professionals rather than managing payroll functions in-house with manual bookkeeping.

What Exactly is Payroll Outsourcing?

Outsourcing payroll functions allows businesses to save money, time, and effort by outsourcing all payroll functions to an external manager. Comparatively to in-house payroll management, outsourced payroll solutions provide a higher level of accuracy since they are prepared, analysed, and evaluated by qualified professionals.

Ideally, payroll outsourcing achieves three key goals –

It allows businesses to focus more on core tasks by freeing up both time and resources.
The costs and risks associated with it are reduced.
Ensures businesses have access to the latest payroll technology and expertise.

Let us discuss these benefits in more detail and understand what they mean for businesses.

Benefits of Outsourcing Payroll

The following advantages can be gained from outsourcing your payroll process to a qualified service provider.

Enhanced Productivity/Time Saving

The process of managing payroll processing in-house is extremely time-consuming and requires a great deal of resources, manpower, and attention to detail, resulting in lost productivity. Furthermore, the time spent on accurate payroll management, involving a great deal of data, diverts time from core business activities.

Businesses and HR departments can devote more time to other important tasks for business growth and expansion by outsource payroll.

Reduced Costs

Time is the most important commodity for any business owner. It is linked to the revenue that the business generates from tasks that it handles. Time is money, so the more time they save each day, the more money they earn.

There is a huge value when it comes to calculating employee hours, paid time off, deductions, leaves, printing and distributing paychecks, and completing tax returns.

The outsourcing of payroll processing allows you to ensure all aspects of the payroll process, including handling payroll inquiries, calculating payroll taxes, and filing statutory documents, are handled efficiently and effectively. By outsourcing payroll functions, you can save a lot of money when you compare how much time is spent in-house managing payroll, versus how much you would have paid for those services if you did it internally.

Advantage of the Latest Technology

The rapid advancement of technology has led to an increase in global payroll companies using cloud-based systems to manage their business data, give better visibility and transparency to payroll processing, and maintain robust data integrity.

With outsourcing payroll, you can also take advantage of emerging technologies, such as RPA, used by specialist payroll service providers to optimize payroll processing, improving the accuracy and timeliness of the process. Many of the latest payroll technologies are used by professional payroll providers such as UptoDate Bookkeeping to manage payroll outsourcing seamlessly.

Compliance

When it comes to handling complicated government tax regulations related to payroll, many small business owners struggle. It becomes difficult to process salaries and reimbursements of every employee in an organization due to a variety of complex rules, employee benefit mistakes, multiple bylaws, PF percentages, and taxes. It is important that businesses avoid mistakes that can lead to audit irregularities and penalties.

Professional payroll service providers, on the other hand, have the required expertise and are always abreast about the latest compliance regulations, and tax rate changes. They also have dedicated staff to help companies meet all the regulatory updates.

Enhanced Data Security

Managing payroll in-house entails a number of risks, including the safety of the server/network and embezzlement. There is also always a risk of data mishandling when increasing numbers of employees are working from home these days.

Providers of outsourced payroll services use highly secure cloud-based servers and encryption technology to keep your sensitive information safe.

Conclusion

Despite not directly affecting the business, payroll is one of those critical business functions. However, if it is not done in an efficient manner, it can negatively impact the overall business.

Providers of payroll services specializing in payroll management typically provide many services including compliance, complexities of regulations, tax calculations, and human resource management. UptoDate Bookkeeping, powered by a strong technology backbone, has achieved >99.8% accuracy in managing payroll for our clients. With such trained professionals handling payroll functions, business productivity can be enhanced, and you can focus on the growth of your company.

You’re losing money. Is it a poor management of accounts payable?

Posted on September 1, 2021 by udtadmin - Bookkeeping Services

We all know that accounts payable is more than just paying the bills. A poorly managed accounts payable can harm your profit margins, while a well-managed accounts payable can boost your bottom line.

It is not uncommon for companies to attach more importance to profits than to expenses. Expenses, like revenue, impact profitability as well. Thus, accounts payable management also has a direct effect on the bottom line of your company.

You can learn what you need to do to make sure your payables have a positive impact on profitability by reading on.

Top 3 Ways Accounts Payable Management Impacts Profitability

1. Vendor Relationships

Probably goes without saying, but it’s still important to mention: always pay your bills on time. Managing accounts payable is the first step to benefiting your bottom line.

Your ability to pay on time and in accordance with the agreement will not only prevent you from incurring unnecessary late fees on your bills, but it will also protect your credit history from bad marks while assisting you in building a good working relationship with your vendors and suppliers.

As a result, your business will have established a sterling reputation for repayment, which will enable you to take advantage of the best terms and conditions when it comes to cash flow-friendly payment of inventory and other supplies (including the best rates and payment due dates). Credit cards can be a great way for businesses to reduce overall expenses and increase profits.

You’ll also be more likely to work with a vendor if you run into a problem when you need to pay them, since they’re familiar with you and have a stellar history.

Besides paying on time, making payments early may also increase your profitability. You might assume that holding onto your cash for as long as possible and paying your vendors at the last minute is always the best strategy for payables. Even though this might be true – especially if you experience frequent cash flow shortages – paying early can sometimes be advantageous.

When you pay your invoice or statement ahead of the due date, many suppliers offer a discount for early payment. Pay early if your cash flow is strong and your cash flow is positive. Profit margins will grow as a result.

2. Better (or Worse) Cash Flow

In order to stay in business and be profitable, it is crucial to manage cash flow well. Accounts payable management can have a significant impact on your cash flow and, consequently, on your profitability.

Keeping cash in your business for as long as possible (by extending accounts payable days) can improve cash flow if your company is suffering from cash flow shortages. Therefore, if you’re short on funds, wait until the bill is due before paying it.

A longer repayment period or delaying payment will enable you to keep more cash available for your business. This ensures that your business’s cash is flowing out in a timely fashion. In a cash-flow pinch, prioritize your payables by focusing on those due now, ones past-due, and those with the highest interest rates.

Take advantage of your good relationships with your suppliers now if you think you might be facing cash flow problems. Let your vendors know what’s happening and ask them if they can accommodate your needs until your cash flow improves. If you risk tarnishing the relationship or not being paid, you will likely have more difficulty getting your suppliers to repay your debts.

You will be able to avoid cash flow shortages if you pay close attention to your payables and the effect they have on your cash flow.

3. Hours Spent on Manual Work

Paying bills is something everyone is familiar with. Paying bills takes more than a few seconds in a business.

We can’t emphasize enough how important automation is (As experts in “Zero Entry Accounting”, we are experts at automating the back office. When clients come to us, we see the problems caused without automation.)

During the course of your business, you will likely work with more suppliers and vendors, each with a different cycle of billing and a different schedule of payment due dates. Some payments should be made early and some on time. Others may offer electronic payment options, while others will require a check.

It takes some time to open envelopes, read physical invoices, approve expenses, cut checks and sign into secure payment servers (both yours and the employees’). Accounts payable management requires a tremendous amount of resources when handled manually – just to send money out!

It is therefore imperative that you automate your accounts payable function. Accounting automation will help you save time and also help you reduce overhead costs and cut labor costs associated with bill payment.

Further, automating processes will allow your employees to focus on higher-value projects that are intended to generate revenue instead of spending money. Increasing productivity and boosting the bottom line are guaranteed with automated accounts payable management.

Automate Accounts Payable Management With a Fully Integrated Back Office

It doesn’t matter how many vendors you work with or how many bills you have to pay, your business will benefit from automating a variety of processes, including accounts payable.

You will be able to save time double-checking invoices, paying bills, and signing checks, along with keeping a complete record of all your business expenses. With your receipts automatically categorized and up-to-date, audits will be simplified, tax filings will be simplified, and report generation will be simplified and streamlined.

Therefore, you won’t only have less headaches paying your company’s bills, you’ll also ensure that you’re making the most of every payment you make.

Tips for Small Business Bookkeeping

Posted on July 30, 2021 by udtadmin - Bookkeeping Services

You can use these small business bookkeeping tips to manage your day-to-day accounts and office tasks. You will learn how to do bookkeeping with these tips and be better able to operate your business.

Separate your personal and business banking

To keep business funds separate from personal funds, new business owners must open a new business bank account as soon as possible. Ideally, the new account should have online access. Processing business expenses in the business bookkeeping is a waste of time. Having personal expenses mixed into your accounts with a bookkeeper is even worse…

If they are mixed up with business transactions, they will need to be processed. To enter them, they must be coded to drawings in the bookkeeping system, taking up valuable time that could be spent entering business information.

To avoid the bookkeeper from having to deal with a million small personal transactions and making you pay for their time, if you need to use business money for personal expenses, you should do a bulk transfer to your personal account on a regular basis, such as once a week.

Organize Your Business Documentation

Documenting all business transactions is a top priority. Accounting source documents are called accounting source documents. Keeping them allows you to:

Easy tracking for any future queries that might pop up, and
Proof (to an auditor or tax man) of what occurred.

Tax departments typically require businesses to keep the documents that back up their tax claims for a minimum of five and often seven years. Documents such as invoices, receipts, wage records, etc. Find out how long your local tax department keeps records by doing an internet search for it. It is only possible to keep the records if they are filed and archived in a very logical manner. A box or basket full of papers arranged randomly makes it difficult to find what one needs, not to mention frustrating.

Learn to Understand Monthly Bookkeeping Reports

It is surprising how many business owners do not know if what they are doing is working until it is too late, i.e. when they suddenly find themselves in debt and with no money. By keeping your bookkeeping system updated and producing reports once a month, you can avoid this scenario. Learn how to read and understand those reports. If you want to own and run a business, you can’t ignore this factor. The income statement and balance sheet are the two most important reports to begin with.

Outsource Your Bookkeeping When it becomes too hard to handle

Business owners who double as office administrators and bookkeepers and struggle with bookkeeping or do not have enough time can outsource the whole thing.

Outsourcing is:

Cost Effective : Because you only need to pay for a couple of hours of work a month opposed to paying a regular wage, and
Accuracy : You are getting that necessary professional work done on your accounts so you can be confident they are correct.

Professional bookkeepers can prepare monthly reports quickly after processing bank transactions, reconciling accounts, and compiling reports. Whatever amount of work you need done can be outsourced.

The great thing about experienced professional bookkeepers is that they are usually in a position to give you great business advice over and above your day to day bookkeeping needs such as :-

Investigate new software and advise if any are a good fit for your business
Attend business meetings with you and your banker and help explain the accounts to the banker if you find it a little difficult
Help prepare your annual budget and cash flow reports
Train your office employees
And much more

Benefits of Outsourcing Bookkeeping Services

Posted on July 1, 2021 by udtadmin - Bookkeeping Services

The challenges of owning a small business are unique. By outsourcing your bookkeeping services immediately, you can free up time and brain power. It can be especially brutal to run a small business. You’re probably working around the clock to run a small business. Fortunately, there are resources that can ease your workload. In order to keep your books in order, a small business owner should hire external bookkeepers.

1. The Benefits of Expertise

Probably when you started your business you didn’t intend to manage your books yourself or with the help of a part-time cashier. Your chances of being an expert on it are slim, because you have no experience with it. An outside bookkeeping agency is a necessity in this regard. Your financial records will be organized by professionals whose sole purpose is to make your life easier. It will be a relief to have an accountant who knows how to deal with tax returns, audits, and government remittances.

2. Power in Numbers

When you outsource your bookkeeping, you don’t just hire one person to do the work. Our team of experts crunches the numbers for you.

3. Cost-Effectiveness

If you are tired of doing your own bookkeeping, the usual solution is to hire someone. Small businesses with limited cash flow may not be able to afford this. We offer services like ours where you only pay for what you need, when you need it. There is no need to hire an accountant* on a retainer or pay for health insurance for a new employee.

4. They’ll Scale with You

Even if all goes well, the financial needs of your business will grow too big to handle by one individual. A bookkeeping company, however, can grow with you.

5. Increased Focus

You’d most likely rather use your time improving the things that your customers care about if you were the face of a company. You can now put the time and money you would have spent crunching numbers towards improving your product or service. You can work on improving employee training, improving customer service, or adding a new business department to your business. You can concentrate on what matters to you when you outsource your bookkeeping.

6. Better Tools

Many tools and software programs can make your bookkeeping much easier, even if you’re doing it on your own. However, they are often too expensive for small business owners to afford.

7. Less Stress

Outsourcing your bookkeeping can lead to less stress at the end of the day. Being clear-headed and well rested is important for a successful business. With a thousand things on your plate at once, reaching that mental state is impossible. You can eliminate your financial concerns and IRS challenges by outsourcing your bookkeeping needs, and you’ll be free to do what you like.

Outsourcing Payroll is a good idea for your business

Posted on May 31, 2021 by udtadmin - Payroll Services

Payroll is one area of your business that you need to function effectively and efficiently. In the case of a poor performance, fines and penalties may result for your organization. Paying employees incorrectly can lead to disputes and even lawsuits.

Paying staff on time and accurately is part of good payroll practice. Business owners, however, often find it difficult to balance priorities, and payroll is often overlooked in favor of profit-generating activities. The most efficient solution is therefore to always outsource your payroll to a qualified payroll service provider.

What is payroll outsourcing and how does it work?

A payroll outsourcing company essentially provides you with outsourced payroll services. Payroll companies can handle all your payroll-related obligations, including creating new records, processing terminations, and calculating budget to actual.

This can only be done if you provide the payroll provider with employee and employer information. Usually, that is all you need to do, so you can concentrate on your strengths.

Why use a payroll service?

In order to grow your business, you want to focus your efforts on revenue-generating activities. Nevertheless, you have a responsibility to your employees as an employer. Outsourcing can be useful in this situation.

In any business, payroll is an essential function, but it can also be extremely complex and time-consuming. Paying incorrectly may also have a domino effect. The result of an incorrectly calculated employee pay may result in a dispute that you must then resolve. In addition to this being a waste of your time, it can also negatively impact employee morale and productivity at work.

Moreover, missing payroll deadlines will result in fines and penalties, which will adversely affect your profit margins and cash flow. You can spend more time concentrating on your core services and lead generation by outsourcing your payroll.

The benefits of outsourcing your payroll function

Payroll operations need to be handled by an employee if you will not be doing them yourself. Your company will have to pay more salaries and benefits by hiring an employee.

It is necessary to purchase payroll software to facilitate payroll activities and deliver them efficiently. An additional cost could be avoided.

In addition, you should always use the latest version of software that incorporates the new tax rates for the year. You will have to pay advancement costs in addition to your current costs.

Outsourced payroll providers usually offer much more cost-efficient service package fees.

Time saving

Payroll processing can be a huge administrative burden, as you need to consistently devote time to it each pay period, keep track of every payroll change and component, monitor all payroll submission deadlines to ensure timely submission, validate all payroll inputs to ensure an accurate result, and complete all legal paperwork.

These tasks can all be handled by an outsourced payroll company. Payroll outsourcing services require only that you provide the payroll data and approve the pay calculation results for each pay period.

It is unlikely that you’ll have the experience or expertise to run your payroll effectively unless you were a payroll provider previously. That means either you have to spend a significant amount of time learning the basics yourself or you have to train your employee to do so. In-house payroll employees will need regular training as government regulations change.

Outsourced payroll services provide expert advice and service. Eliminate staffing issues

The payroll process needs to be conducted regularly, whether weekly or monthly. You must have an in-house payroll team available every time payroll is due.

In the event that a payroll manager is ill or on annual leave, you’ll need to pick up the task or risk failing to meet payroll deadlines.

You will not only have to pay the costs of recruiting a replacement employee if the employee leaves, but all that knowledge is also lost.

This wouldn’t happen with a payroll service provider. You can be confident that your payroll will always be conducted on time by an expert, regardless of employee movements.

Overall, it may feel like a big decision to outsource your payroll department. However, it is the most cost-efficient and risk free option to ensure your payroll is conducted error free every time.

Find Your Perfect Bookkeeper with Outsourced Bookkeeping

Posted on May 3, 2021 by udtadmin - Bookkeeping Services

bookkeeping services near forest lake mn

When you’re ready to outsource your bookkeeping, it can be an attractive option. What can you expect a bookkeeper to actually do for you? How much will a bookkeeping service cost? How much can you save just using bookkeeping software alone?

This article discusses: How to figure out the best bookkeeping solution for your business.

The advantages of outsourcing bookkeeping as opposed to using bookkeeping software or hiring a bookkeeper in-house
A bookkeeping service covers what tasks
Outsourcing your books how the process actually works
How much does quality outsourced bookkeeping cost?

We will cover everything you need to know about outsourcing your bookkeeping.

Does Your Bookkeeping Need to Be Outsourced?

The benefits of moving bookkeeping off your plate are obvious if you’ve already made the decision. For starters:

You get to concentrate on growing the company instead of spending time and patience on it.
When you leave it to a professional, you don’t need to worry about inaccuracies or falling behind on your books.
Whenever it’s time to get a loan or file your taxes, you can be confident that your books are all in order and ready to hand to a CPA.

You can also hire a bookkeeper in-house, but outsourcing your bookkeeping is the better option. What are some reasons to outsource instead of hiring in-house?

Outsourced bookkeeping services are more flexible, allowing you to tailor your service to suit your changing needs.
The cost of outsourcing bookkeeping can often be substantially less than paying an employee’s salary plus benefits.
Someone else is in charge of vetting and hiring qualified, professional bookkeepers.

Bookkeeping services can handle a variety of tasks for you.

It turns out there is a lot of confusion between bookkeeping, accounting, and taxes. So if you decide to outsource your bookkeeping, what does that cover?

Bookkeeping services can handle any and all of these tasks:

Importing financial information from bank statements, credit card statements, payroll records, invoices, and more .
Making sure all transactions have been properly categorized and reconciled
Manage the tracking of bills and income yet to be recognized (which typically includes accounts payable and receivable management)
Making sure your books are always up-to-date and accurate
A monthly or quarterly statement of cash flows, profit & loss, and balance sheet for your business.
Explaining your financial statements and other aspects of your bookkeeping in terms you can understand
Providing information to investors, tax preparers, and other interested parties with complete and accurate financial reporting.

The details will need to be worked out with the person or service you choose. Ask questions in advance and make sure your expectations are aligned with theirs before signing up.

How Does Outsourced Bookkeeping Work?

When you choose to outsource your bookkeeping to an independent professional bookkeeper, a human-only service, or a hybrid bookkeeping service, the process looks a little different. Here’s how the process works when you use a service.

Step 1: Your dedicated account manager will help you set up all the integrations and connect all the financial accounts and software your business already utilizes.
Step 2: Bookkeepers and software work together to record, categorize, and reconcile transactions. Meanwhile, you don’t have to worry about your books.
Step 3: We send you your financial statements each month.

If you have any questions about your monthly financial statements or anything else along the way, your dedicated account manager is always available to assist you.

Costs of Outsourcing Your Bookkeeping

If you’re looking for a hard and fast guide here, you’ll be disappointed. Business needs and financial circumstances vary widely, so it’s impossible to give a blanket answer. number that businesses can expect to pay for outsourced bookkeeping. But we can give you a few guidelines as to bookkeeping costs.

Rates depend on factors such as:

Whether the service relies on software, humans, or both
How many transactions and expenses your business incurs (either by the number of transactions or the dollar amount)
Whether you want accrual or cash-based bookkeeping
How many financial accounts you need to connect
How often do you receive financial reports?
The caliber and time commitment of support you will receive
Other features include accounts payable and receivable, inventory management, and more.
The complexity of your financial situation (i.e., revenue recognition for multiple entities).

The more complex your organization is, the higher your bookkeeping costs will be — and the more likely you are to need a good bookkeeper.

Increase the productivity of your bookkeeping by outsourcing

Accurate financial records are essential for every business — but managing them shouldn’t consume your time and patience. If bookkeeping is taking you away from growing the business, it is worth the investment to give it to a professional.

By doing so, you’ll be able to focus on what you do best.

Union Payroll can be tricky. Let us handle it for you.

Posted on March 31, 2021 by udtadmin - Payroll Services

We specialize in managing payroll for union shops. Using our experience, we provide comprehensive payroll solutions that are affordable for businesses that need to manage complex payroll systems.

Our internal processes and procedures enabled us to manage the complexities and rapid-fire changes unique to union payroll management.

Since union payroll in the Twin Cities is so unique, we are able to help businesses by being able to assist immediately. UptoDate Bookkeeping is dedicated to making the payroll processes seamless whenever management’s in-house person goes out on medical, maternity or disability leave or for an unexpected work influx that necessitates the hiring of new employees.

Employee net wages and payroll taxes are held in escrow separately by a national bank – ensuring you have peace of mind.

Clients can report hours easily by fax, email, text or online.

A Complete Union Payroll Solution

We provide union contractors with accurate, reliable and efficient services. By relying on our expertise, we eliminate the mistakes that cause workers to complain that their paychecks are wrong.

When your payroll is handled by just one person, and that person goes on sick leave, we will make sure payroll and tax payments go out on time.

The transition to our services is easy because we have a process in place. Our services include:

Payroll administration; setting all rates, differentials, overtime, assessments, and payroll taxes.
Management of fringe benefits.
Ensuring readiness for union audits
Worker’s compensation audits complete
Adjusted premiums verification of accuracy
Baseline reports and other payroll reports.

Fringe benefits for union members

Employee fringe benefits can be tricky to manage since different unions and job classifications have different benefits.

We make sure these items are properly set up into the system so they will be correctly calculated.

Contact UptoDate Bookkeeping in Blaine MN for help with calculating holiday, paid time off, health benefits, training and pension deductions.

The Benefits of Outsourcing Payroll Services

It’s economical

Reduce overhead by removing the need to hire specialized employees by letting us handle payroll and the legal details related to it.

It helps you save time

We take care of payroll preparation, system updating, monitoring and maintenance, so you don’t have to enter data, research new laws, or worry about compliance.

Payroll Tax Filing is Worry Free

Don’t put yourself at risk by calculating and filing your payroll taxes on your own. Have professionals handle it for you. Payroll tax laws in the U.S., state, and local jurisdictions are changing frequently and becoming more complex. Can you spare the time to learn how to keep up to date with all the rules?

The ability to focus on core competencies

Our team of experts lets you focus on your business’ core competencies.

Detailed Reports

With us, you get a wide variety of convenient and accurate payroll reports. You will get union reports, certified payrolls, workers’ comp reports, and much more for a nominal fee.

Our payroll solutions are designed to meet your needs.

When it comes to payroll service – there isn’t one size fits all.

Bookkeeping Consulting Services

Posted on March 8, 2021 by udtadmin - Bookkeeping Services

Your job as a business owner is to get things done. So you do exactly that. You manage payroll and keep your accounts receivable updated. You reconcile your bank payments and deposits to ensure you have enough money to pay all of your bills.

You even prepare your own business tax returns and take on hundreds of other tasks both small and large. You work very hard. You always do whatever needs to be done, and you rarely ask anyone for help. This is why you need to have a bookkeeping consultant.

It’s about money sometimes

When you have limited cash flow, it is critical to save money wherever possible. This can mean no bookkeeper, no office manager, and no marketing department. When you do everything on your own you will have money that can be invested into your business. That is a sure way to ensure that your business continues to grow. It is also a very easy way to overlook things that are critical.

It’s about control sometimes

As the main investor, CEO, owner, and the person who has the most to lose or gain, you take on many important tasks. It can make sense to want to do things yourself if you are worried that somebody else will mess everything up. Of course, this means having to spend long hours at your office and being able to take few vacations, if any. However, if you want to have things done exactly your way then it is best to do it yourself.

This is why you need to have a bookkeeping consultant

Things could still get messed up unless you are very experienced in every task you are handling yourself. You may not want or need full-time administrative staff. However, getting solid professional advice is still something you can greatly benefit from. A consultant can provide you with this.

A bookkeeping consultant will not do all the things you do in your business. They will just help you keep everything on track. This is accomplished through becoming familiar with your business and provide you with advice on management, financial, and organizational strategies. A consultant can implement solutions and provide services that will help your business continue to grow and succeed.

We Provide Consulting and Bookkeeping Services

We are dedicated bookkeepers. However, we also provide small and medium-sized businesses with professional consulting services. You can outsource your work o us so you don’t need to pay for a full-time professional. Our services are conducted remotely so we will not be invading your office.

Trying to do everything yourself is never a good idea. Our bookkeeping consultant experience and expertise can provde you with the financial services and advice that you need while you remain in control of your business.

Why Maintaining Proper Financial Records Is Key

Posted on February 8, 2021 by udtadmin - Bookkeeping Services

All businesses need to devote at least a portion of their attention to the topic of accounting. Regardless of the industry niche or service sector, it is vital that you have a strong awareness of your financial standing at all times so that you stay current on obligations to state, local, and federal revenue agencies. As such, there are a number of key reasons why enlisting the help of a qualified bookkeeper makes a great deal of sense.

Understanding Your Finances

There is no substitute to always knowing your company’s financial status at any given point in time, including whether you are generating profits, if you are gaining or losing clients, if you are exceeding your goals, and if you have sufficient reserves to meet all obligations. When you lack this kind of information, your business can quickly spin out of control. You must always have a firm grasp of your inventory situation, whether you need to place orders, whether your suppliers are extending the right kind of credit, and whether you are prepared to cover every type of overhead your business must pay. Without having the right detail on your financial circumstances, you also run the risk of falling out of compliance with regulatory authorities on local, state, and federal levels. The best way to stay on track is to ensure that your books are always updated and entirely accurate. In this way, you can keep tabs on cash flow, negotiate the best rates from suppliers and lenders, and stay on top of all governmental rules and regulations.

Achieving Tax Compliance

Every business must meet obligations imposed by taxing authorities on a regular basis. These duties encompass paying employee withholdings, social security and Medicare taxes, federal income tax, local sales and business taxes, and more. Filings must be timely, and quarterly payments must be promptly made. Inaccurate financial statements and books increase the chances that these duties will be neglected or done in shoddy fashion.

Benefits Of Hiring A Bookkeeper

Professional bookkeepers can reduce the pressure by assuming responsibility over many of the aforementioned functions, letting your focus remain on strengthening the enterprise. Bookkeepers possess the type of experience and know-how needed to conduct oversight over your business finances and keep your tax filings and payments organized and filed.

For businesses with a large amount of vendor payments and customer receivables, an additional clerk may be useful for processing invoices, assisting in collections, and remitting amounts due. Bookkeepers can then assist on a monthly or even a quarterly basis to ensure that all functions are being handled appropriately.

While we have referred to this type of professional as a bookkeeper, if your business is of a certain size or scope, it may be wise to hire an accountant who can keep more formal controls over your enterprise’s financials. Such an individual can also aid in crafting income and asset protection strategies. These may include flexible spending accounts, IRAs and other financial tools that can lower your overall tax liabilities and boost wealth at the same time. Regardless of the actual job title used, savvy business owners understand the innumerable benefits of having a financial professional on their side.

The Main Reasons 8 Out Of 10 Small Businesses Outsource Their Bookkeeping

Posted on December 30, 2020 by udtadmin - Bookkeeping Services

While outsourcing bookkeeping services was once considered reserved for larger companies with bigger budgets, it’s now become much more accessible. The modern business landscape has ultimately made this practice increasingly common and practical. Nowadays, the majority of businesses have at least a fraction of their bookkeeping and accounting being handled by an outside organization.

1. It’s More Cost Effective

A primary reason a lot of companies have started to outsource their accounting rather than keeping it completely in-house is to experience the cost savings that come with it. While professional accounting services don’t come cheap, hiring staff to do it in-house can be even more expensive. After all, by hiring your staff of full-time accountants, they will require desk space, benefits, payroll, and even equipment. When you hire an accountant that is outsourced, you will be able to get all of this built into the base pricing. Perhaps best of all, you only have to pay for it when you need their services.

2. Dedicated Team

By outsourcing your bookkeeping efforts you will be able to gain access to a variety of professionals who are experienced and who will be dedicating their time to save you money. They will be working around the clock to ensure your books are kept in order. As a business owner, you may be tempted to keep your books to yourself and under your control, but having a professional and experienced accountant is something that cannot be understated.

3. Business Growth

A lot of businesses end up choosing to outsource their accounting efforts once they have been able to sustain a level of growth. For instance, when you begin to approach around one million in revenue, keeping your books in order completely in-house can become unrealistic and improbable.

4. Outside Investment Capital

One of the other reasons businesses end up sending their accounting to another company is due to the fact they have received a lofty investment directly from an outside source. These investments typically come with their terms that outside investors place on them to ensure they are spending their money wisely.

5. Focus On Business

You started your business to make money by selling either a product or a service. By effectively outsourcing your accounting efforts, you will be able to place greater focus on the core elements of your business. You will be able to redirect all of you and your staff’s focus to result-producing activities within your business. It will help give you much more guidance on the overall financial health of your business which can help you maintain profitability. Any business that outsources its books will have a much better ability to focus on various result-producing activities like sales and marketing while having the assurance that your books are being handled by professionals in the field.

6. Access To Better Technology

Outside accounting services will have access to the best possible technology and equipment in the industry. After all, that is what they do. Their entire company is structured in a way to position themselves as the best accounting provider. Because of this, they will have the highest standards set forth which you can leverage as a business.

7. Gain More Control

By having your bookkeeping controlled by a third-party company, you will be able to take better control over your business. You will be able to hire them to do the job and focus on other things that you need to. You will be able to rely on having a dedicated team of accountants working around the clock on your books while you can focus on the bigger picture to ensure everything is being done the right way.

8. Make Your Life Easier

As a business owner, you are already wearing multiple hats as it is. You want to ensure that you can focus on the aspects of your business that need your attention. Running your business isn’t easy. By effectively outsourcing your accounting and bookkeeping, you will be able to minimize the stress you are dealing with and have your business running like clockwork.