Tag: Bookkeeping Services Mpls

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.

 

Learn How QuickBooks Can Help You

payroll services minnesotaThose in the bookkeeping industry know who QuickBooks ProAdvisors are. A ProAdvisor is more than a “QuickBooks Consultant.” They can help you with specific problems such as choosing the right QuickBooks version, creating industry-specific templates, or setting up a simple payroll that the business owner or accountant can handle. They can do these things for you, but that doesn’t even scratch the surface of what they can do to help grow and profit your business.

Accounting software company Quickbooks has over 80% market share, thanks to its wide range of products for small and large businesses alike. However, utilizing QuickBooks for your accounting and fully leveraging it for your business are two different things. By understanding what QuickBooks can do for you, what version is right for you, when a new version is needed, and how to leverage the software’s full potential, you will truly unlock the key to your financial success.

A QuickBooks ProAdvisor can help you take advantage of everything the accounting software has to offer. They can also help train your in-house resources, such as your bookkeepers and accountants, so that they can utilize the full power of QuickBooks, which can transform your business. As long as your internal resources are adequately trained, you’ll be able to handle complex accounting problems without outside assistance.

After receiving QuickBooks training, your bookkeeper(s) and accountant(s) can use it to its full potential. Below are some examples.

Understanding Industry-Specific QuickBooks Usage

QuickBooks is an accounting software that covers many fundamentals and can virtually accommodate the needs of any industry. For larger growing companies, QuickBooks Enterprise offers different industry-specific editions (contractor, retail, manufacturing, wholesale, etc. ), all of which come with special features specific to their industry. However, you (or your accountant) need to run a cost-benefit analysis and determine whether QuickBooks Enterprise is the right choice in the first place, something a ProAdvisor can also assist with.

The accounting needs of businesses in different industries vary. If your accountant has been properly trained, they will likely be able to meet your needs even without the industry-specific edition. Business growth and smart accounting decisions can be made more efficient if you understand the difference between inventory management for an e-commerce company and a bricks-and-mortar business transitioning to e-commerce. Developing expertise relevant to your specific industry can help your bookkeepers and accountants become your growth drivers. On the other hand, if they are limited to rudimentary QuickBooks accounting, they might hinder the growth of your business.

Learning The Best Practices

It’s not always beneficial to gain experience without proper training. Trial and error is still learning, but if an accountant only does things to “get things done,” they will not perform optimally. However, if your accountant(s) and bookkeeper(s) are trained by ProAdvisors in QuickBooks best practices and the accounting practices of your industry, they will waste less time, make fewer (if any) costly mistakes, and contribute to your business growth.

Accountants must utilize the primary accounting tool properly to ensure proper accounting for a business. If they fail to do so, it won’t result in “proper accounting.”

By adopting the best QuickBooks practices, your accounting can become significantly more efficient, including:

  • Spotting unusual financial patterns
  • Identifying where your business is losing money
  • Determining your most profitable avenues
  • Helping your accountants “paint” a detailed and more accurate picture of your business’s finances

In contrast, suboptimal use of the software can bury financial problems in a mess of data until they become too large.

Understanding How to Use Advanced Features and Which are Right For Your Business

If someone buys a Ferrari and does not drive it over 70 mph, what would you say?

A powerful tool is being underutilized by the person in question.

Accounting is similar to an accountant never going beyond the basics of QuickBooks. However, they can fully utilize QuickBooks with proper guidance and training. They would learn how they can automate certain processes with advanced features, which would lead to greater productivity (with less effort spent) and fewer errors.

Your team can also stay up to date with new QuickBooks advanced features when they’re released by QuickBooks ProAdvisors.

In addition, it is a good idea to learn how to integrate and use QuickBooks with other business software (like your CRM) or third-party applications. If your accountant wants to make the most of QuickBooks, they should know that some of the advanced features and customizations might not be effective for your business.

How UpToDate Bookkeeping Can Help

Team members at UpToDate Bookkeeping know what they’re doing, but they also know how to explain it. Our QuickBooks trainers must possess a deep understanding of the software, as well as strong teaching skills. We have achieved long-term success by leveraging our knowledge and expertise to help train our clients’ staff on how to unleash QuickBooks’ full potential.

Contact us today to discuss how we can help your business learn to use QuickBooks fully.

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

bookkeeping services near forest lake mn

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.

 

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.

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

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

1. It’s More Cost Effective

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

2. Dedicated Team

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

3. Business Growth

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

4. Outside Investment Capital

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

5. Focus On Business

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

6. Access To Better Technology

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

7. Gain More Control

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

8. Make Your Life Easier

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