8 Reasons to Use a Bookkeeping Service for Your Small Business
If you’re running a small business, whether it’s because you just started one or you’ve been in business for years, you know that keeping track of your finances can be overwhelming. It’s not that the work itself is hard; it’s more that there are so many administrative aspects to running a business that it can be difficult to find time to manage the accounting side of things in addition to your other daily tasks and responsibilities. If this sounds like something you deal with every day, it might be time to consider outsourcing your bookkeeping services to an outside company.
1. What are the benefits of using a bookkeeping service for small businesses?
Keep your time, not money, in mind. Most small business owners don’t have an abundance of extra hours available—and those they do may be better spent on their business than on updating accounting spreadsheets and sending invoices. Hiring a bookkeeper is not only cost-effective but also puts you in contact with someone who can answer questions related to your industry that might otherwise be lost as you tackle other tasks. Another benefit: When it comes time to prepare taxes, pay expenses or raise capital, your bookkeeper can act as an advisor and make sure that everything looks professional and calculated correctly. Spend more time growing your business instead of doing its books! Learn More About Our Bookkeeping Services For Small Businesses » How can I find a good bookkeeper?: Check out reviews online. Don’t just rely on word of mouth from friends or family members; search online reviews to see what others are saying about potential candidates. Ask around at networking events, look up local associations in your area and take advantage of free trials offered by some services. If possible, get recommendations from previous clients (if applicable). Get references from potential candidates so you know what kind of work they'll perform for you before hiring them. What are some things I should consider when choosing a bookkeeping service? It's important to choose someone who will give you personalized attention while providing quality service at an affordable price—and it's equally important to choose someone whose personality meshes well with yours!
2. What are the key features of a good bookkeeping service?
Ask prospective services what they do and how they can help your business. During these initial conversations, you’ll want to determine what factors are important in selecting a bookkeeper. Will you need monthly reports? Do you use QuickBooks or another accounting software? How many years of financial history do you need? A good bookkeeper will be able to answer these questions and more. In addition, most services have application forms that they’ll ask you to fill out so that they can better serve your needs. Once you’ve chosen someone and signed an agreement, here are some of their responsibilities
2.1. They make sure all entries made into your accounting system are accurate and up-to-date
2.2. They provide support with tasks such as reconciling bank statements
2.3. They prepare financial statements and taxes
2.4. They pay bills on time
2.5. They offer assistance when preparing budgets
2.6. You'll receive timely information about payments due to vendors
3. What are the different bookkeeping services available?
There are two main categories of bookkeeping services for small businesses: outsourced and in-house. If you decide to go with an in-house bookkeeper, he or she will work closely with your company's accountant, who is more familiar with what your tax needs are. Outsource it and you can tap into whatever expertise (and computer programs) you need—all from one provider. That said, some argue that outsourcing creates its own unique set of problems. Most notably, there's always confusion about who owns which data and how much access companies should have to yours. As always, consider your options carefully before deciding on an outside service provider that can't share information easily or quickly—especially if there are any sensitive financial details involved.
Another type of bookkeeping service for a small business involves virtual software that many freelancers use. It allows you to manage all aspects of your books, from invoicing and payrolls to sales tracking and revenue accounting. This means less paperwork, less time spent organizing records, and less hassle when trying to sort out complex finances among multiple employees or entities. And unlike outsourcing, it won't cost you thousands of dollars per year in fees since everything runs through your own cloud-based account.
4. What are the different bookkeeping software options available?
There are many software options available, depending on your business size and needs. QuickBooks is likely one of the most common systems used by bookkeepers, but you can also find payroll management software that makes it simple to keep track of your employee’s pay. Ultimately, finding software that works best for you will depend on what kind of business you run, how many employees you have, and other factors. If you want help choosing or configuring your system, reach out to an expert like our team at Pacific Accounting Group who can help guide you through choosing a bookkeeping service for small businesses.
5. Discuss the importance of recording and tracking financial transactions. What are the benefits of doing so?
Working with a bookkeeper provides small business owners with peace of mind. When you’re focused on launching, growing, and managing your small business, bookkeeping isn’t always at the top of your to-do list. However, it is an essential function for any entrepreneur who wants to keep her business running in tip-top shape. An experienced bookkeeper understands not only how to set up and use QuickBooks (or other accounting software), but she can also help you create financial reports, implement systems and create procedures that make recording and tracking financial transactions easy—even when you're busy running day-to-day operations. Not sure if hiring a bookkeeper is right for your company?
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