Tag: bookkeeping monthly balance sheets

Main Reasons To Outsource Your Bookkeeping

Posted on October 1, 2020 by udtadmin - Bookkeeping Services

Oftentimes, 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

Posted on July 28, 2020 by udtadmin - virtual bookkeeping

Technology 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

Posted on July 1, 2020 by udtadmin - Bookkeeping Services

Financial 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?

Posted on March 31, 2020 by udtadmin - virtual bookkeeping

The 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.

Reasons Why Every Small Business Needs A Bookkeeper

Posted on March 2, 2020 by udtadmin - Bookkeeping Services

Bookkeeping Defined

If you’re a small business and thinking of hiring a bookkeeper, it’s important that you first understand what bookkeeping is and how it can benefit your business. Simply said, bookkeeping involves managing your business’ books, recording all transactions. Whether it be a sale or an expense, it should be recorded. A bookkeeper is someone responsible for keeping track of all the finances – oftentimes, this process involves making use of bookkeeping software. When done properly, the business owner will be able to make accurate financial decisions with the use of the information provided in the books. These bits of information can also be used to help the business file taxes, secure loans, and even show the company’s health financially. With that being said, keeping the books accurate and up-to-date plays a very important role, no matter the size of your business.

Should I Hire A Bookkeeper?

Always bear in mind that bookkeeping requires a lot of time. Maintaining and balancing your books can usually take a huge chunk of your time, especially if you have a lot of financial transactions. With that being said, if you have a limited number of transactions, hiring a bookkeeper may not be necessarily needed. To make it easier to understand, here are some examples :

Example #1: I own a small sole proprietorship business offering services. I run the business alone and have no employees with about 12 monthly transactions. With that small amount of expenses and invoices, I would only need about 1 hour every month to work on my books.

Example #2: I own an online e-commerce store and sell products. On average, I buy 200 products and sell all of them within that month. With about 400 transactions (buy and sell), it would take me 8 hours per month to do the books.

In general, there’s no specific number of hours that tells you that you’ll need to hire a bookkeeper. The only thing that you should always take into consideration as a deciding factor is whether keeping up with your books takes too much of your time. If you’ve been spending time on your books more and less on your business operations, you may want to consider hiring a bookkeeper. This way, you can focus on more important things and delegate the task of managing your books to someone with extensive experience in the field.

Another reason why you may want to consider hiring a bookkeeper is when you, the business owner, have little to no background when it comes to accounting. Accounting is a crucial knowledge that you need to have to be able to efficiently manage your books. Someone without account experience and knowledge may find it difficult to take care of complex transactions. Someone with extensive experience in this background may help you and your business to accurately take care of your books.

Various factors can take into account a business’s books to become more complex. The more that the books get complex, the longer the time it would take to maintain these books. Here are some of the most common factors that are to be taken into account:

Inventory
Payroll system (total number of employees)
Fixed assets such as buildings, furniture, cars, and equipment)
Product manufacturing
Advantages Why You Should Hire An Outside Bookkeeper

By hiring an outside bookkeeper, one of the benefits would be the time that you can save. You don’t have to worry about the tedious tasks of managing your books, but instead, you can focus your efforts and your time on running your business alone. Bookkeepers are equipped with the knowledge and trained to make sure that your books remain balanced and accurate. You’ll also have the peace of mind that you’ll make the correct financial decision because of the accurate information that’s provided in the books. While it’s true that a bookkeeper is an added expense to your business, you’ll have the peace of mind and get the burden off your shoulder of managing your transactions – these are things that money can’t buy.

As you can see, even small businesses can take advantage of hiring an outside bookkeeper. However, take into account the amount that you’re spending on this service. It may go up or it can get cheaper, depending on your books’ organization and format as well. If you have an entire box full of receipts, expect your bookkeeping services to be a bit more expensive as compared to those that have digital receipts.

The Importance Of Bookkeeping

Posted on January 29, 2020 by udtadmin - Bookkeeping Services

Reliable financial records are essential, which is why bookkeeping is so crucial. Unfortunately, there are a lot of businesses out there that don’t make bookkeeping a priority. Accurate records won’t just make your life easier. Bookkeeping is also a legal requirement.

There are many businesses that fail because of poor bookkeeping. After all, when you’re not keeping proper records, you don’t have the information you need to make your business successful.

1. Proper Budgeting: You need accurate books in order to set a fair budget. When you’re able to keep track of both your expenses and your income, you’ll be able to plan ahead. You’ll be able to make sure you have the money you need to cover all of your expenses.

2. Preparing For Taxes: It’s likely that your business files taxes annually. You shouldn’t have to dig through your desk in order to find the paperwork you need for your taxes. You can avoid these kinds of headaches if you make bookkeeping a priority. With accurate records, tax filing will be much easier. It will also simplify things for you when it comes time for you to file your own tax return.

3. Staying Organized: Organization is something that business owners should prioritize. When you need to locate an essential piece of information about your business, you should be able to do that with ease. At some point, certain parties might request financial records from you, including potential investors, lenders, your employers, and the IRS. You need to make sure that you can quickly provide this information when it’s requested.

4. Accurate Analysis: It’s important to analyze your business’ performance from time to time. Bookkeeping can help you to do exactly that. Through bookkeeping, you’ll be able to generate financial statements that you can use for the purposes of analysis. Analyzing financial statements will allow you to see the cash that’s coming into your business as well as the cash that’s coming out.

5. Improved Decision Making: When you have the data needed to properly analyze your business, you can make smarter decisions. It can be difficult to make the right decisions when you can’t access the information that you need. You can get essential information from bookkeeping. You won’t be able to make decisions that will benefit your business without looking at your financial records.

6. Planning Ahead: With bookkeeping, you’ll be able to look at how your business has performed in the past. This will make it easier for you to prepare for the future. By consulting your financial records, you’ll be able to see where your business is succeeding and failing.

7. Reporting To Investors: Anyone that has invested in your business will want to know how it is performing. You can provide investors with this information when you have accurate financial statements. Documents like your balance sheet, cash flow statements, and income statements all help to demonstrate your business’ value.

8. Managing Finances: It’s difficult to control a company’s finances without proper bookkeeping. Financial records allow you to see how and where your money is being sent. You’ll be able to see what your customers owe you and what you owe to other people. Paying your bills in a timely manner is important to the health of your business. It’s also important to make sure you receive prompt payment for the products or services you provide. Your business depends on having balanced books.

9. Minimizing Stress: When you know your financial records are a mess, you might want to panic. If you’re lying awake at night worrying about your books, you need to take action. Running a business is hard work. You should minimize your stress by keeping accurate, well-organized financial records that can be reviewed at any time.

10. Keep Track Of Profits: Without financial records, it can be difficult to assess how profitable your business truly is. After all, you’ll prepare your income statement via bookkeeping. That statement will allow you to see whether or not your business is turning a profit. When you don’t have access to information like this, you won’t know if your business is succeeding or failing. Your financial records will also help you to see how your business is growing.

11. Improved Cash Flow: Many people don’t realize that keeping accurate books can lead to more reliable cash flow. When you’re not properly tracking customer invoices, you may not notice when you don’t receive an owed payment on time. It’s important that everything, from your business expenses and liabilities to revenues and receivable are recorded. You should keep close track of invoices and ensure you’re receiving payments promptly. You should also make sure you’re paying invoices on time so that you won’t have to pay for late fees.

12. Improved Strategy: As a business owner, you should constantly be strategizing. You need to think tactically so that you’re able to build your business into something bigger and better. You can gather information from your financial records and use it to build stronger strategies. You can also see how well your current strategies are paying off. You’ll be able to adjust your methods and set more realistic goals.

13. Assess Your Business At A Glance: With accurate bookkeeping, you’ll be able to find a lot of essential information about your company. Your income statement, cash flow statement, and balance statement will all allow you to see how your business performed during that period of time. You can go over these statements and quickly assess how your business is doing.

14. You’ll Be Prepared For Auditing: If your business undergoes an IRS audit, you’ll want your books to be well organized. If your books are poorly organized, the process could drag out for a long time. The IRS could also impose fees or other penalties on you

15. Bookkeeping Is A Legal Requirement: It’s important to remember that you’re required by law to maintain accurate financial records of your business. If you don’t do this, your business can be terminated. You may also need to keep records showing that your financial records and personal expenses are separate.

Your Next Step: Now that you understand how essential bookkeeping is, it’s time to take action. With accurate financial records, you can cut costs, avoid major setbacks, and keep your business running smoothly. If you need bookkeeping assistance, don’t hesitate to reach out to us.

Various Functions Of Payroll Management

Posted on January 6, 2020 by udtadmin - Payroll Services

Payroll is an extremely important function of any business – whether you have one employee or an entire workforce. But payroll is a complicated process and involves much more than simply ensuring that each employee is paid on time. Payroll management involves various functions to ensure employees are paid correctly in compliance with government regulations.

1. Processing Paychecks

Processing paychecks is the primary function of payroll management. Make the smallest error in one paycheck and it will quickly become apparent just how negatively this can affect the entire workforce and operation of a business. A payroll manager therefore needs to ensure that each employee’s compensation is calculated correctly in accordance with their employment contract.

Aspects of compensation that need to be verified include:

– The net salary of an employee.
– Their hourly work rate.
– Compensation for overtime
– Commission
– Incentives
– Any other amount that is a form of income

Additional factors that need to be taken into account include:

– Vacation time
– Sick leave
– Maternity leave
– Compassionate leave
– Holiday pay

Common deductions that need to be factored in include”

– Federal income tax
– Health or dental insurance contributions.
– Pension fund contributions
– Repayment of a company loan
– Any other deductions or contributions that have been agreed upon between employer and employee.

Additional Bonuses And Perks

– A car allowance
– Housing allowance
– Mobile phone allowance
– Clothing allowance
– Entertainment allowance
– Any other perk or added incentive offered to the employee by the company.

2. Payroll Taxes

It’s not just your employees who are going to be seriously unhappy when your payroll is not processed correctly. The IRS receives 70% of its annual revenue from payroll taxes. Your company can face severe penalties that could be very costly for failure to pay payroll taxes or by paying erroneous taxes. The IRS penalizes businesses with billions of dollars every year.

A payroll manager needs to be aware of the different tax rates that apply to different regions in the country and make the correct deductions from an employee’s income. They also need to fill in various forms to record and document payroll taxes including W-2’s for every employee by the end of January each year. Form 941 also needs to be completed and submitted every quarter detailing employment taxes that are withheld for contributions. These documents need to be completed accurately and on time to avoid penalties. Training, skills and experience are therefore critical in a payroll manager.

3. Record Keeping

The Fair Labor Act requires that an employer keep accurate records for each employee that is not exempt. The following information in employee and payroll records are required:

– Full name and surname of employee and social security number
– Physical or residential address including the zip code
– Date of birth for employees under the age of 19 years
– Gender and occupation
– The day of the week and time when an employee’s work week starts
– The hours that are worked every day
– Total work hours that are completed each workweek
– Rate at which the employee is paid – hourly, daily, weekly or monthly including the amount.
– The regular pay rate per hour
– The total weekly or daily straight-time earnings.
– The total overtime income for each workweek.
– All deductions from and additions to employee’s wages or income.
– The total wages that are paid over each pay period.
– The date when payment is made and the pay period that is covered by that payment.

The FLSA regulations also require that all payroll records should be kept for a period of at least three years. Records showing wage calculations need to be held for two years – for example, work timetables, time cards and other relevant documents. The payroll manager should ensure that these documents are stored electronically and backed up to be inspected by the Department of Labor at any time.

4. Employee Accessibility

While it is a legal requirement for payroll records to be made available to the DOL, employees should also be granted access to their personal payroll information upon request. A secure online portal provides a means for employees to access their personal information including:

– Summary of benefits
– Summary of pension fund or 401(k)
– Summary of deductions and history
– Details of direct payments
– Time clocks
– Paid leave or time off work

UptoDate Bookkeeping solutions also provides employees with the ability to download and print documents such as W-2s, make changes to tax settings and make online payroll inquiries. This empowers your employees with the knowledge that they need when tax season arrives.

5. Simplifying Payroll Management

Payroll is complicated and a dedicated HR department to handle all the responsibilities that come with payroll simply isn’t in the budget for every company. Outsourcing payroll management and administration with UptoDate Bookkeeping is a convenient and affordable solution to provide business owners with the peace of mind that every aspect of their payroll is being handled expertly and in compliance with the required regulations.

Why Invest In A Bookkeeper As A Business Organization.

Posted on November 26, 2019 by udtadmin - Bookkeeping Services

Today, every business institution needs a bookkeeping department or outsource their bookkeeping to run successfully. That is because this department plays the role of recording accurate financial records that are made by the company. These records contain valuable information such as purchases made at a specific time as well as the sales and receipts.

Unfortunately, bookkeeping is mostly practiced by large business organizations, since the small-scale organizations focus more on marketing activities to generate more revenue. Bookkeeping helps you maintain the correct recording of all your financial transactions. You can use this information to come up with a business plan that will help you succeed in the future.

If your company does not have a bookkeeping department, then you can choose to hire a bookkeeping specialist. Below are the benefits of hiring a bookkeeping specialist.

Allow You To Concentrate On Other Business Matters.

Working in small-scale organizations is challenging. That is because employees are always overburdened with responsibilities. But, by outsourcing the bookkeeping tasks, the workload with automatically reduce. As a result, employees will have enough time to complete their assigned tasks.

Moreover, outsourcing the bookkeeping task also helps in improving the efficiency of a business organization. That is because the company will no longer lose time on certain business activities such as overseeing workers and recruitment.

Help Save Money.

By outsourcing the bookkeeping task to a qualified team, you will be saving money on payroll and infrastructure.

Furthermore, the cost of hiring a third party for bookkeeping services is less compared to training the current employees.

Access To A Bookkeeping Specialist.

Many companies that offer bookkeeping services have a team of specialists who are experienced in this type of work. That makes it easy for them to fulfill the client’s requirements on time.

Therefore, you can be sure that you bookkeeping task with be handled by a certified bookkeeper. That is why it is convenient to outsource this particular task.

Quick Results.

Another reason as to why business organizations should outsource bookkeeping tasks is because they can expect quick results.

It does not matter how much work needs to be done, after outsourcing the bookkeeping task, clients are given the results after a short period.

Access To Modern Tools.

Companies specialized in bookkeeping services use modern tools to deliver quality services to their clients. By outsourcing bookkeeping task to one of this company’s, you can gain access to some of these modern tools.

The points mentioned above prove that outsourcing the bookkeeping task can benefit both small and large business organizations. Moreover, the services are easy to find affordable.

Fall In Love With Better Business Habits

Posted on October 29, 2019 by udtadmin - Bookkeeping Services

Every new season brings with it an element of change, and hopefully a few seasonal specialties you can look forward to. For the fall season, your mind might fill with sweaters, changing leaves, trips to pick apples, pumpkin spice everywhere, and of course, the winter holidays coming on fast. Quite a bit happens in the year’s closing months, so it often seems like only the blink of an eye separates Labor Day from New Year’s Eve.

Fall is an optimal time to take more charge over your business, where you focus on everything that you have accomplished, as well as what still has room for improvement, all before calendars get flipped into a new year.

Before you’re able to any sort of fruitful planning for the future, you need to take the previous year into perspective and go back over everything that you’ve done in those 12 months. Do you remember what you first set out to accomplish? Do your actual accomplishments stack up very well to the original expectations?

The last four months of the year fly right by, especially when you consider how many events and holidays are mixed up in it all. Start considering holiday promotions now. Considering how many specials and sales are going to happen, you need to think ahead in order to stand out among your competitors.

You need to do other things that aren’t nearly as fun as getting ready for year-end promotions, which includes handling tax items and payroll tasks. You might want to send out reminders to your employers that they need to verify their W-4 information right away so you can process their W-2s promptly with the right information. The final quarter of the year is also an ideal time to start gathering up all the information, receipts, and documents you might need to file taxes in the new year. If all of this overwhelms you, or you just need professional advice on handling taxes, this might be a great time to partner up with UpToDate Bookkeeping in order to have help before things get too busy.

It’s really never too early to begin looking at your new year goals and where you want to make your business better. When you reflect on the accomplishments of the previous year, you have an analysis you can use to jumpstart the next year. Maybe you’d like to grow your customer base by 300, or perhaps you want 110% of your current ROI. Regardless of your goal, it’s good to plot them out in advance so you have time to start mapping out your strategies to get them done.

Fall is as fresh a start of a season as any other, so use it to bring some breathe some fresh air into your business. Even if the back-to-school frenzy is still hanging in the air around you, it’s a great time to do your own homework, study, and testing so you can teach the new year who is boss in your business.

The Importance Of Maintaining Accurate Financial Records For Your Business

Posted on September 26, 2019 by udtadmin - Bookkeeping Services

Accuracy and precision are essential when it comes to keeping financial records for your business. Tracking your financial picture provide you with valuable information that can help guide your decisions as your business grows. Knowing exactly where you stand financially at all times is essential if you want to achieve success.

Precision Matters

When dealing with financial data, precision is essential. Even the tiniest numbers need to be carefully tracked. Your company’s assets begin to depreciate the minute that you buy them. Tracking this depreciation is an important part of keeping up with your financial records. You also need to keep detailed records of all of your income. That doesn’t mean just writing down how much money is coming in. Instead, your income needs to be split out into cash receipts and accounts receivable so that you have an accurate idea of exactly where your money is.

Staying On Top Of Taxes

Businesses of all sizes are responsible for paying taxes on their earnings. The tax rates can be quite high – especially for businesses that are bringing in a lot of money. If you don’t accurately track and pay your taxes, you could find yourself facing a huge tax bill at the end of the year. To avoid this problem, pay your taxes as you go.

Catching Mistakes

One of the best things about keeping accurate financial records is that it allows you to catch mistakes or errors early on. That way, you can correct them before they grow into a significant problem for your business.

Keeping Investors Happy

If people have invested money in your business, keeping good financial records is even more important. Records like these are an essential component in the trust-building process and can help ease any worries or fears for investors.

Staying On Top Of Payment Cycles

Keeping detailed, accurate financial records is also important when it comes to keeping up with your accounts payable and accounts receivable cycles.

Tasks like tracking your inventory, paying out wages, and managing your bills all need to be taken care of in a timely manner. Without detailed financial records, keeping up with these duties is far more difficult. A good example can be seen with a business loan. Instead of just sending in your monthly payment, it is important to figure out how much of that payment is going to the loan’s principal and how much is going to interest. To do that, you need to accurately track the data.

Guiding The Decision-Making Process

Ultimately, every decision that you make for your business should be as well-informed as possible. Financial issues play a key role in most major decisions that businesses make. The more accurate your records are, the easier it will be for you to decide on a course of action.

Any inaccuracies in your financial data, on the other hand, can negatively affect your business. Oftentimes, problems aren’t noticed until significant damage has already occurred.

Tracking your company’s finances isn’t very stimulating. However, it is one of the most important things that you can do for the future of your business. Maintaining detailed financial records also can prevent you from inadvertently breaking the law.