Numerous business owners are reluctant to employ bookkeeping services to track their costs. While some may feel it’s an unnecessary cost, others may be uncomfortable granting a third party access to such privileged information.
Although these concerns are valid, the benefits far outweigh the drawbacks. If you’re unsure about the related benefits, check out this list.
Employing a bookkeeping service can be more cost efficient than hiring part time or casual staff to perform this task.
You’ll discover there’s no need to buy and sustain computer systems, purchase costly upgrades and accounting software or invest in expensive development and training of staff.
Furthermore, you don’t need to allocate office space and there’s no leave entitlements, superannuation, or other expenses that a part or full time employee incurs.
Employing a bookkeeping service implies hiring someone with accounting experience or even a qualified accountant. These professionals know to classify and enter your transactions, which helps maintain accuracy and aids pre-tax planning.
When you perform this task yourself, you’re likely to procrastinate possibly due to a busy schedule. On the other hand, a professional will check more frequently and typically perform the task better.
3. Time efficiency
A bookkeeping service has the proficiency and know-how to manage your accounts and allow you to concentrate on the daily operation of your business. Bookkeepers must be flexible and plan meetings around your busy schedule.
They should also have the ability to generate figures and reports on short notice to accommodate last minute meetings.
Moreover, a bookkeeping service can update your accountant on when to expect your files for accounts preparation and yearly tax return. This helps you run and develop your business without focusing on administrative tasks.
You may be the sole employee now or maybe you are in a partnership. Sometime in the future, you may develop your business to include more workers, and a bookkeeping service is an excellent option for managing your payroll needs.
Some of the services you can expect include writing and creating checks for you to sign. Some services may mail them to workers or bring them to your office.
The same applies to contractors and freelancers. Besides payments, some services will prepare Form 1099-MISC or a W-2 for every contractor or employee for tax purposes.
5. Higher Profits
This service puts you in charge of cash flow, decreases tax liabilities, and capitalizes on profits using management controls. The services can also offer a consistent reporting service and update processes.
This includes comprehensive knowledge of balance sheet monetary position as well as loss and profit performance to date, which can undergo further analysis if necessary.
You can use tailored reports to prepare budgets, make business decisions, and evaluate your past performance to predict the future business plans and maximize profits.
Numerous small business owners don’t know their business’s true economic state and the failure to analyze and stay on top of your business is likely to produce a failed business.
Accessing important financial reports is important, and bookkeeping services produce the reports you require as frequently as you want them. While most businesses need fiscal reports on a bi-weekly basis, some need them weekly while others may need them monthly.
Regardless of the frequency you select, a bookkeeper will generate the reports you need. This way, you’ll know where your business stands while preventing problems from taking place.
7. Peace of Mind
Employing a bookkeeper gives you a piece of mind because a reliable reporting system is in place, processes are updated, you’re managing cash flow, ensuring timely invoice payment, and following up on unpaid invoices.
Your bookkeeper must update you on any regulation changes and prepare for important dates such as your yearly tax return.
You must view a bookkeeping service as a business investment rather than an expense. Engaging these services will offer various benefits such as decreasing your tax liabilities, so hire one today.
Dailey Bookkeeping Services is a Xero Certified SILVER Partner and a QuickBooks Online Certified Advisor, so if we can help you with your bookkeeping needs, just give us a call, we would love to help you! The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Silver Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can! Feel free to visit our website at http://www.