Tag: bookkeeping monthly balance sheets

Main Reasons To Outsource Your Bookkeeping

Profit First Professional

Profit First ProfessionalOftentimes, we meet with clients when they are going through a crucial growth cycle. This usually occurs when business owners reach a certain point where it becomes difficult to handle their books.

Typically, it’s not long after that point when business owners recognize the importance of maintaining updated and accurate financial records. However, being able to maintain accurate and updated records isn’t the easiest thing in the world. After all, it requires a hefty time commitment and a lot of manpower. It’s usually pushed down as a lower priority for business owners. After all, it’s not a result producing activity and that’s not how they turn a profit. Therefore, maintaining books can end up eating into time that could be better spent elsewhere in the business.

By hiring a bookkeeper to handle the tasks in-house, the problem can be resolved. However, it can be costly and it can oftentimes be a worse option than outsourcing the same task. Below, you will find some of the main reasons you should be considering outsourcing bookkeeping rather than handling it in-house.

1. Privacy

For one, you will be able to keep things much more private. The records of a business need to maintain optimal privacy and having someone outside of your organization handling it can make business owners feel much more comfortable. After all, you have to hire someone you trust to handle it inside of your organization and that is not the easiest task in the world. By outsourcing the same duties to a third-party and virtual bookkeeping service, you will be able to eliminate the chances your information gets leaked to those within your organization.

2. The Ability To Scale

Businesses that are growing typically start with much smaller needs and end up needing much more as time goes on. If you are looking to scale your business, it might be time to begin taking your bookkeeping much more seriously. By hiring and outsourcing your bookkeeping, you should be able to properly scale your efforts without needing to make additional costly hires.

3. Training

Unfortunately, business owners don’t have the experience nor the time to train their new bookkeepers to do the job properly. After all, the bookkeeper they end up hiring will likely know much more than they do. Therefore, as a business owner, you wouldn’t be best situated to make the right hire nor would you be in an optimal position to effectively manage the staff you do hire. By outsourcing your efforts to a reputable and experienced bookkeeping service, you will be able to forgo any training requirements and it can ensure that you can maintain your books as professionally as possible.

4. Get The Most Out Of Your Resources

Typically, a business owner who looks to perform bookkeeping duties on their own is looking to cut costs and save money. If you are considering delegating the task to someone in your organization, you would be effectively reducing their productivity and efficiency by asking them to handle something they are not as well equipped for. By outsourcing your bookkeeping to a professional service, you can have your employees and yourself stick to things you are good and most efficient at.

5. Tax and Audit Preparedness

By utilizing outsourced bookkeeping services, you will be able to ensure that your books are always ready for an audit. Having your records in order can ensure that you can satisfy the IRS and banking institutions that may need to see them. This can give you peace of mind knowing that everything is in order at all times.

It cannot be understated how important it is to maintain accurate and updated financial records. By outsourcing your efforts to a professional service, you can maximize the efficiency at which it is done and as a company, you can reduce the burden on yourself and your employees.

Advantages Of Hiring Virtual Bookkeeping Services

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisTechnology has now made it possible for businesses to seriously consider remote bookkeeping services and this is the reason, many businesses are taking advantage of these remote services. However, some business owners are terrified by the concept of a virtual bookkeeper and some even think that it won’t work for them.

There is no denying that innovations in the technology industry have resulted in a complete shift in the accounting and bookkeeping industries as cloud and virtual have become the new buzzwords. These days, many bookkeeping experts are taking advantage of new technology to remain competitive and to become more effective. An accountant or bookkeeper can now offer accounting services remotely through virtual bookkeeping. Here is a list of some of the benefits of virtual bookkeeping for your business:

Save Money

It will allow you to find an expert bookkeeper at a considerably cheaper cost as compared to keeping an in-house bookkeeper. When you start searching, you will find that there are many remote bookkeepers offering part-time services and they are capable of meeting the needs of your business. Also, remote bookkeepers work as contract workers which means there is no need for you to worry about payroll taxes, vacation time and other benefits associated with permanent employees. You will also save money as services of a virtual bookkeeper are often available at affordable prices.

Zero Wastage

Since no physical office is needed for virtual bookkeeping services, you won’t have to worry about wasting resources on hiring a new person. You will also save money on administrative and accounting expenses. Whenever you hire a new person in your business, you have to spend some time on their induction. Also, space needs to be found for that person to work in.

It is not easy to keep account books. This is where a virtual bookkeeper shines as they can take care of payroll preparation, and various activities related to cash management as well as preparation of financial statements.

Another Professional in the Team

Individuals working as virtual bookkeepers not only spend time on performing bookkeeping tasks but they also regularly compete for new business. It also means that they are aware of the inner workings of the business and they would continuously improve their skills in order to remain competitive. They also have to constantly add to their knowledge and follow the best practices which means you will benefit from their ever increasing knowledge and best practices.

Access to Latest Tools

If you hire a new person at your company, you will also need to invest in the latest technology and tools in order to allow them to do their work. On the other hand, a virtual bookkeeper is responsible for keeping the software up-to-date. In short, there is one less thing for you to worry about when it comes to running your business.

More Time for Your Core Business

One of the biggest advantages of hiring someone remotely is that you get time to focus on your core business when someone else takes care of the books. When you know that someone you can trust is taking care of the bookkeeping, you will have the necessary peace of mind to give 100% to your business. You don’t have to worry about access to the latest financial reports. Needless to say, you need access to accurate and latest financial records in order to make informed decisions.

Get Access to an Experienced Team

When you hire the services of a traditional bookkeeper, you also have the challenge of finding someone who is the right fit. You do not want to overpay for a senior person but you still want to hire someone who is able to take care of all the important and necessary tasks as your business grows. On the other hand, when you hire the services of a virtual team, you will get help from individuals with expertise in different areas and different levels of experience, and in this manner, they can help you find the right team members for that particular task you need to be done.

Continuous Availability

When you hire the services of a virtual beekeeper, you can rest assured about their availability and accessibility. They typically do not have fixed office hours but they are usually available for customer support at all times.

Conclusion

Remote virtual bookkeeping services aren’t meant for everyone. However, they can be of great help in several situations. If you are still concerned about hiring the services of a virtual bookkeeper for your business, call us today for a consultation. One of our Business Development Specialists will help you figure out whether a virtual bookkeeper is the right choice for your business.

Why You Need To Hire A Bookkeeper For Your Company

bookkeeping company mn

bookkeeping company mnFinancial functions are some of the most important when your start-up is growing into a fully-fledged business. You may not have the financial resources to hire a qualified accountant for your business. But you should at least consider hiring a bookkeeper to help with the numerous financial aspects of the business. Here is why your company needs the services of a qualified bookkeeper.

1. You Will Have Enough Free Time To Focus On Core Business Needs

A startup business needs the full attention of its founder. You should focus more on sales & marketing, funding, business strategy, and other key areas that are important to grow your business. There are daily operational tasks that require your full attention when you are still growing the business. Hiring a bookkeeper will free your precious time so that you can focus on the core functions of your business.

2. Let A Qualified Professional Deal With Accounting Functions Of Your Business

Many founders are not competent in the accounting functions of a business. In fact, they don’t have a good knowledge of accounts receivables, accounts payables, and taxes. Let a certified professional handle these aspects of the business while you focus on the more important core functions.

3. Concentrate On A Work-Life Balance

When you have to focus on the core functions of your business and deal with accounting functions, you won’t have enough time to devote to family matters. Your family and loved ones will miss you as a result.

4. Get A Different Perspective On Your Business

Your bookkeeper isn’t emotionally attached to the business. Hence, he or she can put the financials in order and show you how the business is actually doing each month. He or she will show you where the funds are going and how your efforts are paying off at the end of the day. You will see the big picture of the business through the numbers presented by a qualified bookkeeper.

5. Escape The Tedious Aspects Of Business

Financial aspects of business hardly make the founder excited. But a professional bookkeeper may enjoy such tasks. It makes sense to hand over accounting tasks to someone who really enjoys the work. The motivation they have will help them do the job well.

6. Everything Will Be Paid On Time

Late or forgotten payments can impact the credit status of your company. You don’t want this to happen to your startup business. That’s why you need to put a professional bookkeeper in charge so that he or she will handle everything on time and pay the creditors on time.

7. Maintain The Cash Flow

Late payments from your clients may infringe upon the cash flow of the company. Cash flow is important to keep your start-up running smoothly. You may be so busy that you don’t have the time to check all dues from the clients and follow up with them. A bookkeeper will stay on top of such issues and make sure the cash flow will remain optimal at all times.

8. Reduce The Cost Of Financial Obligations

Founders think they could save money by doing everything themselves. But the trust is a bookkeeper can help you save more money in the long run. Human error is minimized and account payables and receivables are handled on time.

Money and time saving, greater cash flow, and expertise are some of the many benefits of hiring a bookkeeper for your startup. Don’t wait! Start the hiring process right now!

What Is Virtual Bookkeeping?

BOOKKEEPING SERVICES

BOOKKEEPING SERVICESThe vast majority of people that start small-and medium-sized businesses do that for the opportunity to do what they do best, whether it is fixing vehicles as a mechanic, creating garden art as a landscaper, or even building websites as a graphic designer.

What most small business owners discover, however, is that besides doing the task that they love full-time, they also have numerous other jobs that they must attend to part-time, which range from marketing to bookkeeping.

If you aren’t particularly experienced in handling such tasks, it can be easy to put them on the back burner, and this may harm your business, particularly when it comes to bookkeeping. After all, while doing the work might be great, not being paid in time is not so great.

Fortunately, remote bookkeeping has come to remedy the situation. It is a service that provides small-and medium-sized businesses with a dedicated remote bookkeeper that’s always available to handle this challenging task.

You can just imagine the freedom of having an experienced bookkeeper ready to help you take care of all your financial tasks every month, thus offering you peace of mind that only comes with knowing that your finances and books are properly organized, accurate, and up-to-date.

The following is a breakdown of all the things that you should know about virtual bookkeeping services.

Is Remote Bookkeeping the Right Option for You?

Research reveals that remote bookkeeping is an attractive option for small businesses that would rather have a more convenient option when it comes to managing their books, even those that already use intuitive accounting tools such as QuickBooks Online.

Remote bookkeeping customers have some similar characteristics that they are looking for, which include:

Organized

Cash flow is one of the most important ways to measure how healthy your business is and is depicted in the month-end financial reports. It is one of the key services that remote bookkeepers provide that small business owners greatly appreciate.

Trustworthy

Trust is obviously an important consideration. After all, handing over your finances to an accountant that you barely know or don’t know at all might sound risky. You want to ensure that you only deal with an honest, ethical, and dependable professional. Hiring an accountant without being first confident in their abilities can be worrisome, so knowing that your provider has been vetted by a third-party service can give you peace of mind.

Consistent

The main benefit of using virtual bookkeepers is that you get to save precious time. Unfortunately, that can be eroded rather quickly if you constantly have to explain the ins and outs of your individual needs. For instance, perhaps some customers use credit cards to pay every month while others prefer using e-checks.

It is the reason why on-demand customers usually request that their bookkeeper get to know them and understand the unique details of their business and industry at large, along with their personal preferences when it comes to communication and invoicing to ensure that they are always on the same page.

Your virtual bookkeeper will get to know your industry and business and customize your setup accordingly. It means that there will be no need to constantly explain your needs.

On-Demand Assistance

If you have questions but don’t know where to turn, you can always connect with a virtual bookkeeper via video chat or message to receive personalized help.

Professional Certification

Tax laws are becoming increasingly complex and small business owners are regularly turning to their accountants for advice regarding what they are allowed to legally deduct. You obviously want to maximize on your tax savings, but this should never be at the expense of operating outside the law, which is why it is so important to work with an accounting professional or bookkeeper that’s familiar with the current tax laws.

Convenience

Perhaps, rather than doing your own books, you have been contracting with somebody locally to help out and you have probably realized just how frustrating it can be. Having to schedule an appointment, and then waiting until they are available. Then, when the appointment time finally rolls around, you come to the realization that it isn’t convenient for you any more since you are in the middle of a massive project.

Better Organization

Your business operations will be much smoother if you get your income statements, chart of accounts, and balance sheet organized, which will help you to understand the performance of your business better.

Month-End Close

You probably already use the saying “Another (birthday/vacation/fill-in-the-blank) in the books.” That’s actually accounting lingo and it refers to the “month-end books” that all small business owners need to refer to when determining how healthy their businesses are. If you choose UpToDate Bookkeeping, you can rest assured that your books will be reviewed and closed every month.

Year-End Report

You can finally breathe easy as you start wrangling your taxes. Your virtual bookkeeper will compile a year-end report for your business to help you when it comes to preparing your tax return.

So, are you looking forward to having more time in your day? Relief from the fear that your books could be wrong? A better picture of your business through regular financial statements?

Find out today just how virtual bookkeeping can help your business.