Category: Bookkeeping Services

Benefits of Outsourcing Your Bookkeeping That Are Often Overlooked

It’s never been easier or more appealing to outsource your small business bookkeeping than it is now. The rise of online technology in general, and cloud computing in particular, has transformed the way we all do business. Finding, contacting, and eventually partnering with services that can help your company function more smoothly—and yield a better bottom line—is as simple as clicking a button.

In our opinion, the most typical reasons given by small business owners for neglecting their financial accounting are time and money. They generally admit to not having the time or skills to perform the necessary bookkeeping procedures on their own. However, many are hesitant to incur the expense of hiring an in-house bookkeeper. Many often, these business owners are ignorant of the numerous cost advantages of using a certified outsourced bookkeeping firm.

The Importance Of Service-Oriented Bookkeeping

Using an outsourced bookkeeping service does not imply that you must purchase software and operate the system on your own. A dynamic working relationship between your business and your bookkeeper is created by the human component and customer service given. Bridging the gap between people and software is an excellent business model to consider when hiring an outsourced service.

The Benefits of Saving Time and Money Do Not End There

If you’re new to outsourcing, you should know that handing over your financial records to a professional bookkeeping firm can save you both time and money. Clearing as many distracting administrative activities from your own overloaded plate as possible frees up time that you can invest in your company’s growth and success. At the same time, outsourcing your bookkeeping will typically cost less than adding a full-time or even part-time employee to your payroll. You only pay for what you need, when you need it, when you outsource.

Expertise in the Field

When you outsource to a trustworthy bookkeeping firm, you can’t beat the knowledge and expertise at your disposal. So you don’t have to, these seasoned specialists stay up to speed on all the most important financial facts. Enlisting their assistance will go a long way toward alleviating the stress that comes with responsibilities like government payments, annual tax filings, and the looming threat of an audit. The Value of a Team When you outsource your bookkeeping, you gain access to an entire team of specialists’ diligence and experience. Some items that might go unnoticed or missed by an individual in your office are significantly more likely to be noticed and dealt with appropriately by outsourced financial teams’ regular group effort.

Systems at the highest level

Your company may not be able to buy the most up-to-date accounting software and tools, but your outsourced bookkeeper can. Smart businesses, regardless of industry, invest in the greatest technology available so that they can continue to provide the best service to their customers. You receive all the benefits of top-of-the-line accounting systems without having to invest in or maintain them yourself when you outsource your small business bookkeeping.

Growth of a Small Business

Companies that use virtual bookkeepers have had better results in terms of expanding their business, increasing sales, and enhancing profit margins. Outsourcing greatly expands your company’s scalability possibilities. You have the ability to quickly and effectively expand or cut back. Whether your company is expanding or cutting costs, the outsourced team can provide you a variety of solutions and the finest options for achieving your objectives.

Statements that are correct

Make a Statement

Outsourcing your bookkeeping to a reputable firm can have a big impact on your company’s growth and profitability. Virtual bookkeepers have the resources and capacities to better focus on the complexities of everyday financial reporting, from compliance to regulation revisions. They can explain and evaluate key facts in your financial accounts to assist you in making better decisions. Job costing techniques boost profits, but they rely on reliable bookkeeping records and financial statements to work. The control provided by high-quality financial statements and accurate reporting is an important part of every company’s central management. It enables effective financial planning and strategic growth strategies based on reliable real-time data from your company.

The Bottom Line

With outsourced bookkeeping services, you may take advantage of technology to boost your company’s mobility and scalability. This relationship provides you with more expertise and experience to help you plan and implement the next stages of your business’s growth. This service’s cost savings and intelligent accessibility can help your company develop and earn more quickly. Are you ready to enlist the help of your new bookkeeping partners to relieve you of the stress and obligation of bookkeeping, allowing you to focus on the growth and administration of your expanding company? Schedule a financial consultation for your company to get started.

 

 

What is the difference between bookkeeping and accounting?

When people think about the differences between bookkeeping and accounting, they often have difficulty distinguishing the two. The objectives of bookkeepers and accountants are similar, but they provide assistance to your company at different points during the financial cycle.

Essentially, bookkeeping is the process of recording financial transactions in a transactional and administrative manner. Accounting data provides you with insight into the financial health of your company in a more subjective way.

Bookkeeping is important

A business’ bookkeeping is the process of collecting financial data and recording daily transactions.

Records financial transactions • Posts debits and credits • Produces invoices • Prepares financial statements (balance sheet, cash flow statement, and income statement) • Maintains and balances subsidiary accounts, general ledgers, and historical accounts

Maintaining a general ledger is an important part of bookkeeping. A general ledger is a basic document used by bookkeepers to record the income and expenses received from sales. This is called posting. Increasing sales require more frequent updates to the ledger. In addition to specialized software, you can also use a spreadsheet or just a piece of lined paper to create a ledger.

The complexity of an accounting system is usually determined by the size of the company and the volume of daily, weekly, and monthly transactions. Documentation of your company’s sales and purchases is required in the ledger, and some transactions require supporting documents. For more information, visit the IRS website.

The role of accounting in society

Accounting is the process of creating financial models by analyzing financial data obtained by bookkeepers and business owners.

Unlike the largely transactional bookkeeping process, the accounting procedure is more subjective.

  • preparing adjusting entries (recording expenses that have occurred but have not yet been entered in the accounting system) • reviewing company financial statements • analyzing costs of operations • preparing income tax returns • helping business owners understand the impact of financial decisions

Accountants analyze financial data to assist in making business decisions. As a result, you’ll understand the true profitability and cash flow of your company. Accounting uses data from the general ledger to reveal a company’s overall picture and trajectory. Business owners frequently seek the assistance of accountants for tax planning, financial analysis, and tax filing.

What is the difference between an accountant and a bookkeeper?

Occasionally, bookkeepers and accountants do similar work, but their skills are different. A bookkeeper’s main responsibility is to keep track of transactions and keep you organized financially, whereas accountants provide consulting, analysis, and tax advice.

Qualifications for bookkeeping

It’s not required that bookkeepers have formal education. In order to be successful, bookkeepers must be meticulous with their work and knowledgeable about important financial matters. Generally, either an accountant or the owner of the company whose books the bookkeeper is keeping supervises the bookkeeper’s work. Therefore, a bookkeeper cannot claim to be an accountant

Qualifications for accountants

Accounting bachelor’s degrees are typically required for accountants. Those without an accounting degree often consider finance degrees to be suitable substitutes.

Accounting professionals can obtain further professional certifications, unlike bookkeepers. Certified Public Accountants (CPAs), one of the most prestigious accounting credentials, can earn the title with enough experience and education. To become a CPA, an accountant must pass the Uniform Certified Public Accountant examination and have professional accounting experience. Part of the cost of hiring an accountant depends on his or her certifications.

 

How Can a Bookkeeper Help My Business?

Bookkeeping Company MinneapolisWhat Do Bookkeepers Do?

In addition to recording expenses, income, and transactions in a company’s books, bookkeepers reconcile the company’s financial accounts on a monthly basis. A bookkeeper might also help prepare financial statements and reports. Even though bookkeeping can be an in-house position, most businesses hire freelance bookkeepers.

A bookkeeper can wear a variety of hats depending on what a business needs. The majority of bookkeepers nowadays work with business accounting software. In addition, most bookkeepers can handle a few tasks for your business. Despite the fact that a bookkeeper’s job is multifaceted, there are some tenets that all bookkeepers follow.

You may also be wondering if you need a bookkeeper if you’re wondering what a bookkeeper does. The tasks that a bookkeeper can perform for you, how much a bookkeeper charges, and how to find a good bookkeeper will be discussed.

What Are the Duties of a Bookkeeper?

This question can’t be answered simply. Bookkeeping can vary from business to business, just like any other line of work. Bookkeepers tend to handle the following tasks most often, however:

  • Record financial transactions
  • Reconcile bank accounts
  • Manage bank feeds
  • Handle accounts receivable
  • Handle accounts payable
  • Work with your tax preparer and assist with tax compliance
  • Prepare financial statements
  • Take on some payroll and human resource functions
  • Make technology and process streamlining recommendations

Here’s a closer look at what a bookkeeper does:

Reconcile Your Bank Accounts

Reconciling your financial accounts is the most important task for any bookkeeper. It ensures that the information in your accounting software matches the information in your bank statements, credit card statements, and other financial statements.

You should reconcile your accounts regularly to avoid overdraft fees, fraudulent charges, or incorrectly recorded transactions. Software makes reconciliation relatively simple, but there is still a need for a human touch to ensure all transactions are accurately recorded.

Manage Bank Feeds

In a nutshell, your bookkeeping service or bookkeeper should be managing the transactions coming in through your accounting system’s bank feed. With a bank feed, you can see each transaction in real-time from your accounting software.

Accounting software should be able to automatically categorize certain transactions, depending on how effective it is. Credit card transactions from an airline, for example, can automatically be categorized as travel expenses. They make sure that these transactions are properly categorized by keeping an eye on them.

The bookkeeper may also have to manually enter transactions that aren’t included in the bank feed. A lot of the transactions that need to be added will be generated outside of the accounting system, such as cash payments or handwritten checks. It may also involve matching customer deposits with outgoing transactions as payments against vendor bills to help manage accounts receivable.

Handle Accounts Receivable

There are several ways to manage accounts receivable. Small businesses may enter their own estimates or invoices, and they may receive payments against the invoices.

There is another option, however. The client calculates the job using an industry-specific estimating program, then provides the bookkeeper with the total. As the project progresses, they create or update invoices in their QuickBooks Online account.

Invoice generation, sending invoices to customers, preparing statements, and assisting with collections are all part of the account receivable services we provide to our clients. The customer notifies the bookkeeper when they have been paid, we enter the payment in QuickBooks Online, and then we create a deposit matching what the client takes to the bank.

Handle Accounts Payable

In addition to accounts receivable, many bookkeepers handle accounts payable for their clients. The bookkeeper will deal with all vendor bills the company receives. The bookkeeper should note the payment deadlines from each vendor, early payment discounts if available, and submit payment to the vendor. When a company grows, bookkeepers can add additional approvers to approve payments. To maintain positive trade credit terms and relationships with suppliers, you need to manage your accounts payable properly.

Work with Your Tax Preparer

Many bookkeepers are unaware of the fact that, by default, they’re going to act as a translator between you and your certified public accountant or enrolled agent. A bookkeeper often has a better understanding of your books, so when it’s time to file your small business taxes, you can have your bookkeeper contact your tax preparer.

Prepare Financial Statements

For your business, most bookkeepers will prepare three financial statements: a profit and loss statement, a balance sheet, and a cash flow statement. The financial statements should be updated every month, and again at the end of the year. Profit and loss statements show your company’s bottom line and operating expenses.

The balance sheet shows the assets and liabilities of your business. The cash flow statement shows how your company is spending and earning cash. Bookkeepers can prepare financial statements with accounting software and send them to their accountants and tax preparers.

Process Payroll

Payroll and human resource functions are sometimes also handled by bookkeepers. Payroll may be included in your bookkeeping service, or they may help you with tax payments and forms. Your accounting system might import payroll data directly from your payroll service provider, or it might import data from a file provided by your payroll service provider. You might also be able to use a bookkeeper to manage timesheets for hourly employees.

Recommend technologies and processes for streamlining

Additionally, bookkeepers are pretty good at keeping up with the latest technology. It’s not uncommon for your bookkeeper to discover a new app or solution tailored to your industry, such as self-employed accounting software, for instance, especially if many of their clients are in the same industry. Perhaps there is a way to reduce labor costs. The goal of a bookkeeper is to streamline your back office. Consequently, they can be an extremely valuable partner for your business.

Bookkeepers Help You Get Back to Business

You now know all of the main skills a bookkeeper can bring to your business. There’s much more to bookkeeping than simple data entry and consulting an accounting book.

Ultimately, the answer to this question will depend on what you and your small business need from your bookkeeper. You will have more time and energy to focus on growing your small business by having a bookkeeper keep track of your finances.

 

Finding the Right Bookkeeper for Your Company: Everything You Need to Know

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Outsourcing bookkeeping can be a good option if you’re ready to remove bookkeeping from your plate, but it can also raise a lot of questions. Which tasks will your bookkeeper be able to handle? Does a bookkeeping service cost a lot? Is it possible to use only bookkeeping software on your own?

This article discusses a few factors to consider when choosing a bookkeeping solution:

  • The benefits of outsourcing your bookkeeping — versus using bookkeeping software or hiring a bookkeeper in house
  • What tasks a bookkeeping service can cover
  • How the process of outsourcing your books actually works
  • How much you should realistically budget for quality outsourced bookkeeping.

We’ll go over everything you need to know in order to make key decisions about outsourcing your bookkeeping.

Is it a good idea to outsource your books?

You can see the benefits of putting bookkeeping off your plate and onto someone else’s. Here are some examples:

  • This means your time and patience go into growing the business rather than doing it yourself.
  • You won’t need to worry about inaccuracies or falling behind on your books when a professional is handling it.
  • Your books will be complete, professional, and ready for a CPA to review when you are ready to raise money or file your tax return.

You don’t have to outsource your bookkeeping to another company to get your books off your hands. In-house bookkeepers are another option. Why should you outsource your books instead of hiring an in-house team?

  • As your business grows, you can scale your bookkeeping service up or down as needed.
  • In many cases, outsourced bookkeeping services are less expensive (sometimes by a lot) than hiring a full-time bookkeeper and paying benefits.
  • Bookkeepers are vetted and hired by someone else.

What an outsourced bookkeeping service can do for you

It turns out that there’s a lot of overlap between bookkeeping, accounting, and taxes. Each bookkeeper performs a specific set of tasks. When you outsource your bookkeeping, what is actually included in that service?

Outsourced bookkeeping services can handle any and all of the following:

  • In other words, you can import financial information from bank statements, credit card statements, payroll records, invoices, etc.
  • Accounting for those transactions by categorizing and reconciling them
  • The tracking of bills and revenue yet to be recognized (which includes accounts payable and accounts receivable management)
  • Maintaining accurate and up-to-date books
  • On a monthly or quarterly basis, we provide you with accurate financial statements, such as Profit & Loss (Income) Statements, cash flow statements, and a balance sheet
  • Understanding your financial statements and other aspects of your bookkeeping
  • Providing investors, tax preparers, and anyone else who needs access to complete and accurate financial reporting.

It’s up to you to work out the details with the person or service you choose. Ensure your expectations are aligned with their offerings before signing up by asking questions up front.

Why You Should Outsource Your Bookkeeping

Every business needs accurate, complete financial records – but managing them doesn’t have to consume all of your time and patience. Taking the back office off your plate is worth the investment if you would rather spend time growing your business.

This way, you can be certain your books are accurate and get back to what you do best.

 

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

Bookkeeping Company Minneapolis

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

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 :-

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

Benefits of Outsourcing 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.

 

Find Your Perfect Bookkeeper with Outsourced Bookkeeping

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.

 

Bookkeeping Consulting Services

Bookkeeping Company Minneapolis

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

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bookkeeping services near forest lake mnAll 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.