There’s good news for business owners who want to simplify doing their books. Business owners who don’t want the burden of data entry can hire an online bookkeeping service. These services are a cost-effective way to tackle the day-to-day bookkeeping so that business owners can focus on what they do best, operating the business. For business owners who don’t mind doing the data entry, accounting software helps to simplify the process. You no longer need to worry about entering the double-entry data into two accounts. Hiring a local or online bookkeeper is a more cost-effective solution, and you’ll get year-round support with your finances.
There’s also the consideration that an outsourced controller has many additional skills that can benefit your business. This might include a knowledge of tax strategy, insights as to how you should structure your personal compensation to be tax-efficient, and more. Outsourced controllers also bring a tried and tested approach to helping manage your business’s finances. That know-how gives them the ability to build your business a financial infrastructure that’s resilient to all kinds of challenges. If your firm doesn’t have a bookkeeper on staff, it’s likely they take up a significant portion of your time.
However, there are some differences between Xendoo’s bookkeeping services and other virtual bookkeepers. For instance, you might hire a freelance virtual bookkeeper that performs the same tasks that a regular bookkeeper would–they just do them online. The Essential plan ($249 a month if billed annually or $299 billed monthly) focuses on bookkeeping only, giving you access to a dedicated team that performs monthly bookkeeping services. The Premium plan ($399 a month if billed annually or $499 billed monthly) adds tax advising services, end-of-year tax filing, and financial strategy planning.
Why small businesses should outsource bookkeeping?
Additionally, outsourced bookkeeping services offers access to various reports that every business owner should be aware of, such as balance sheets and income statements. Furthermore, outsourcing can actually increase your tax filing process because financial statements are often used when taxes are filed. In some cases, companies may outsource bookkeeping and accounting services to have all the numbers they need to fill out forms with the IRS-compliant reports.
- We wouldn’t blame you if you shudder at the thought of tracking all your transactions, but if you outsource bookkeeping responsibilities, you’ll never have to worry about it.
- Once NetSuite is in place, training your team to use it effectively is essential.
- BooksTime is not responsible for your compliance or noncompliance with any laws or regulations.
- Since the information gathered in bookkeeping is used by accountants and business owners, it is the basis of all the financial statements generated.
- Staffing an internal finance and accounting team is expensive and can place significant demands on your time.
Your company may benefit more from outsourcing bookkeeping for small business this crucial duty than it would from hiring a typical in-house bookkeeper. You can spend responsibly while expanding your business when you use online accounting and bookkeeping services. Verify the outsourced accounting services adhere to the security protocols to prevent failures. Consider the security measures like the encryption mechanism used by service providers.
What skills does a bookkeeper need?
Seeking guidance from a professional accountant is also a smart move for small businesses. Part of this is providing their clients with virtual assistants catering to their specific needs, such as bookkeeping. Identifying and rectifying these errors promptly is pivotal to maintaining accurate financial data. It safeguards against potential issues like duplicate entries, missing transactions, or banking errors. Likewise, outgoing expenses such as operational costs, supplier payments, and overheads demand accurate documentation. Categorizing these transactions helps analyze spending patterns and identify profitable ventures where cost-cutting measures might be necessary.
Prepare financial statements
FreshBooks comes with 2 basic plans to meet the needs of different business types and sizes. Whether you’re a small or growing business, you can benefit from FreshBooks’ top features without breaking the bank. You can find independent bookkeepers on freelance websites and similar sources. Freelance bookkeepers can be expensive, and yet the quality can drastically vary from one individual to another.
Your expert bookkeeper will set up a digital accounting system for you if you don’t already have one. This means that we’ll take your sales and revenue data, expenses, payroll, etc, and put it all together in one financial dashboard. You’ll be able to access it anytime–desktop or mobile–and get monthly reporting with balance sheets and profit-loss statements. If you’d like to learn more, you can schedule a consultation with our team here.
Benefits of Outsourced Bookkeeping Services
As work continues to grow it can be easy to lose track of invoices that have been sent, those that are still unpaid, and those that are far past due. Promptly collecting payments on existing work and sending regular reminders on outstanding invoices is an integral part of better bookkeeping. Above all, find an outsourced CFO that you can build a long-term relationship with.
Plus, it costs half of what you could end up paying for an hourly bookkeeper. That’s why Xendoo offers this pricing structure with a variety of package options to fit your specific company’s needs. It also increases when hiring bookkeepers with more years of experience. The average annual salary for business and finance professionals is $84,198, according to MIT. They also may not have as many resources as a bookkeeping firm or company. For instance, when you get a Xendoo plan you also get perks like access to accounting software like QuickBooks and Xero.
Outsourced accounting services bring a lot of cost efficiencies to the table, will improve business profitability, and free up a lot of time invested in other revenue-generating activities. Equally, focus on finding an outsourced CFO that has significant experience navigating the challenges that are currently top of mind for your accounting community forum business. If your main financial goal is to sell your company, make sure you hire an outsourced CFO that has previously advised on a number of successful transactions. It’s likely that an outsourced CFO has experienced these challenges before, making them well-qualified to advise your business on its strategic direction.
But in reality, many businesses across the country, big and small, are embracing outsourced accounting. Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions. Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance. A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.
Beyond day-to-day operations, having your bookkeeping taken care of by a professional expedites the tax filing process. You’ll have all the numbers you need to fill out the forms quickly with IRS-compliant reports for your tax return. You can still get access to expert bookkeepers that your company needs despite cost savings.