Tag Archives: Bookkeeping Services for Small Business

Hiring a bookkeeper can be one of the most important decisions you ever make as a business owner since a good bookkeeper can keep you on the straight and narrow, while a bad one will most certainly derail you.

In this article, we will look at the key skills and attributes you should look for when hiring a bookkeeper. We hope that these tips will help you find the ideal person to work with you.

Experience

A good bookkeeper will be the glue that holds an organization together. It is therefore critically important that he/she has the experience in balancing the books for an organization of similar size and complexity to yours. You should also look for someone who has worked in a firm at a similar point in their business lifecycle. For example, the bookkeeping requirements of a startup with high growth potential will be radically different from those of a company that’s been around for decades. An experienced bookkeeper should be able to think ahead and anticipate needs before they arise and should have experience with your industry and understand its unique bookkeeping requirements.

Training and Education

A good bookkeeper should be educated and trained and have a high degree of business acumen. While a master’s degree may not always be needed, it is important that they at least understand basic business accounting and finance. A bookkeeper should be trained and keep themselves informed of changes to accounting rules and procedures that directly affect their role.

Aptitude for Technology

Unless your company is stuck in the Dark Ages, you most likely use a software system to keep your company financials and manage your books. The right bookkeeper should be trained and have experience using your bookkeeping/accounting software. They should be adept at using other common tools such as Microsoft Excel and any industry-specific systems you have (e.g. estimating, billing systems.) They should be able to process online payments and perform bank reconciliations.

Attention to Detail

By the nature of the role, a bookkeeper must have keen attention to detail. They should have the ability to identify errors and balance accounts on the fly. They should be able to generate timely and accurate financial reports that are clear and concise.

Credit and Cash Flow Management Experience

One of the most important skills a bookkeeper should possess is the ability to keep on top of cash flow and to anticipate cash flow requirements. Factors such as business seasonality, taxes, bonuses and recurring annual events must be considered when determining cash flow needs. The bookkeeper must be able to balance all these requirements to maintain business stability. A bookkeeper should also know how to appropriately use credit during periods when cash flow is low. Controlling debt expenses must all be factored in and an experienced bookkeeper should look for the most favorable rates and terms for credit.

Tax Preparation and Planning

Your bookkeeper should know how to get your company prepared for tax season. They should know the applicable tax deadlines for items such as quarterly tax estimates. They should know how to keep books and receipts well organized for tax seasons as well as audits. While it is advisable to use an accountant to prepare your corporate taxes, a bookkeeper plays a vital role in getting an organization ready.

Like we said earlier, hiring a bookkeeper can be one of the most important decisions you make for your small business. Want to know more about selecting the right bookkeeper for your unique needs? Contact the team at Nexgen Accountants today.

Keeping your financial records up to date is fundamental to the success of your small business. Bookkeeping is the first and probably the most crucial step in the accounting process. An accountant will compile all the financial data – from transactions to payroll – and turn it into easy-to-read reports ready for later analysis. There are a plethora of advantages of using an external accounting service compared to hiring an individual accountant. Let’s check out some of the incredible perks of using a bookkeeping service for your small business!

#1. Helps You Understand Your Financial Health

Updating your directories allows you to have access to information that is crucial to the smooth running of your business: all unpaid invoices, salary estimates, and income information will be at your fingertips.

#2. Helps Your Budget

Bookkeeping is essential as it helps you budget. When income and expenses are correctly organized, it makes it easier to review financial resources and costs. A budget creates a financial roadmap for your business. With a budget, you can plan for future expenses and the anticipated funds that would cover those expenses.

#3. Improves Decision-making

If you have daily bookkeeping records, you will find it much easier to make crucial financial decisions. Knowing how much capital you have at your expense helps you to decide on matters like purchasing inventory or hiring more staff.  If your records show that you are running low on capital, you can choose to take out a loan for your business.

#4. Unbiased Opinion

Having an external bookkeeper can do wonders for your business.  An internal bookkeeper is often emotionally involved in your company. External bookkeeping services will be all business and may offer some crucial insight into your business’ financial situation.  It may be positive or negative insight, but either way, it’s valuable information you may have missed otherwise

#5. Makes Problem-Solving Easier

If you do your bookkeeping daily, you will be able to catch any problems early and solve them before they increase. If you update your books daily, you can identify any fraudulent activity and report it before it does irreparable damage to your business.

#6. 100% Peace of Mind

Disorganized books can weigh heavy on your mind as a business owner. With all of the other factors of running a business, your bookkeeping should not be keeping you up at night. When your books are complete, you can rest easy knowing that your company’s financial information is review ready. Banks or the IRS no longer have to give you anxiety. Instead, you’ll find your mind at ease, and more focused on other elements of your business.

#7. Focus on What is Important to You

Using a bookkeeping service will allow you to focus on what is important to you, both within and outside of your business.  Maybe you want to focus on sales and growth, but you need specific financial reports and analysis to do so.  Perhaps you just don’t want to have to worry about your business bookkeeping so you can focus on things outside of the office, such as your family and golf game.  Using a bookkeeping service will alleviate any concerns about your business’s financials so you can refocus on what is important to you.

#8. Provides a Snapshot of Your Business

Bookkeeping provides financial information about your company in the form of financial statements. Financial statements like the balance sheet, income statement, and cash flow statement all provide financial information for a set of time. Together these statements take a snapshot of your business, allowing you the ability to see how well your company performed.

Are you becoming frustrated with managing your finances and losing track of your bookkeeping obligations? John Mollica & Associates has got you covered! Boasting over 24 years of experience in the taxation and accounting field, they’ll provide efficient, practical business and accounting advice to help you acquire more assets and protect them and make sure your small business stays competitive and profitable.

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