Tag Archives: Bookkeeping Services

  • Home
  • Posts tagged "Bookkeeping Services"

Tag: Bookkeeping Services

What to Look Out for When Hiring A Bookkeeping Service

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.

8 Undeniable Perks of Bookkeeping Your Small Business

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.

Smart Reasons to Outsource Your Payroll

Do you want to expand your business at a faster pace? Then start outsourcing your most ho-hum back-office jobs! Just like sales, content marketing and customer service, payroll is a core component of your organization. It’s not just a bimonthly boredom or accounting task but is also a means of retaining employees and compensating them for their hard work. While some small businesses may choose to manage wages in-house, there are several perks of outsourcing your payroll to a savvy and well-known provider. Check out some of them!

Slimming Down of Overheads

Being a business owner puts a monetary value on each second of your time. So much time is spent during the payday period by:

  • Calculating staff hours, allowances, time off, sick leaves, taxes and deductions,
  • Printing, signing and distributing employees’ payslips,
  • Handling direct deposits and online payments,
  • Generating salary statements,
  • Compiling and issuing local, state and federal income tax.

But why over-complicating things when they can be simple? Remember, each time spent impacts the generated revenue of your enterprise and, therefore, should be spent wisely! (Every extra time saved is equivalent to money earned!)

If you consider the total time spent on salary management in each pay period compared to the costs of outsourcing, it is a plain as a pikestaff that you could potentially save a substantial chunk of dollars if you take these tasks off your shoulders. So, if you’re able to save some time by outsourcing a payroll provider, why not give it a try? 

Government Compliance Coverage

Just because you are not an expert in the complex area of government tax regulations does not mean that you are not responsible for errors. You are still legally accountable for any misreporting or failure to report to federal and state agencies. It is also essential that you understand wage and hour laws and know exactly when you are required to pay overtime!

Even one mistake can expose you to costly audits and penalties. Since regulations change continuously, often several times a year, it is unlikely that you can keep up with all of these changes when you focus on managing and growing your business. Payroll management companies understand tax legislation and are responsible for keeping abreast of the rules, regulations, and changes in tax legislation.

Oh-So Accurate!

In addition to being tremendously nerve-racking and back-breaking, correcting payroll errors can be worth a king’s ransom! And that is why it’s best to seek help from professionals. A competent payroll service provider is less likely to slip up than your in-house staff thanks to their expertise, knowledge, and finely-tuned checking procedures they have in place.

Unbelievably Time-Saving!

One of the main hurdles of in-house payroll processing companies is the time taken to complete a task as well as the inability to find adequate solutions. With each pay period comes a string of checks and balances to avoid errors. As your staff expands, this process gets more challenging and draggier. Thankfully, by outsourcing your payroll, time is instantly freed up. 

And hence, you can use this free time to fine-tune your sales and marketing strategies and streamline your workflow (and yes, the tip of the day: Stop all lousy business habits such as poor time-management!). 

Data Security 100% Guaranteed.

Internal payroll involves a series of risks. Employee records can be accessed by those who manage the payment. And the worst part is the risk embezzlement – where employees could falsify records for personal reasons (not cool, huh!) Besides these swindling risks, considering your payroll software’s security is crucial!

Although the software itself may be relatively secure, your data may be hosted on an iffy server or network with security holes that could expose you to data theft. Comparatively, outsourcing your payroll implies that your information is stored on highly secure servers that use state-of-the-art encryption technology, as well as redundant data backups. 

Doors Opened to Various Services

Even a highly-experienced accountant has a limited skill. Payroll outsourcing services generally offer an array of benefits. In addition to standard payroll and tax calculation, some platforms boast additional value-added services such as bookkeeping services, law compliance, access to health benefits, contractor services, contract generation and workers’ compensation payments. Simply identify which services are most relevant to your needs and hire a professional that provides a personalized scheme tailored to your specific needs. You can contact NEXGEN ACCOUNTANTS for all your payroll requirements. They make your company’s salary system effortless.

Hassle-Free Paycheck

Professional payroll service providers usually employ payroll professionals with extensive knowledge of government compliance, taxation, complexities of regulations and human resources. By outsourcing your wages management, you can kiss goodbye to horrible headaches! Thanks to its countless benefits, you’ll be able to devote more time to the development of your business and also save some bucks!

So, do you prefer outsourcing your payroll or managing it internally? Share your thoughts in the comment section below!

Follow us

Localbiz blog

Partenaires