Running a business is no easy task. There is a lot that you need to look after and countless business decisions to make every day. it can be an incredible responsibility. It’s important to understand that no matter how good you are, there is just so much that you can do on your own.
One area where business owners like you can benefit greatly from a seasoned expert is in their bookkeeping and accounting. It is quite common for businesses to outsource their accounts to professional bookkeepers through a bookkeeping service. Only bookkeepers and accountants know how to manage payroll, accounts, finance, and taxes with ease and absolute accuracy. This is why it may be in your best interest to hire a bookkeeping service. Here is what a bookkeeping service provider can do for your business.
1. Create a System of Internal Controls
When you hire a bookkeeping service provider, you get to ensure that you have a dedicated professional who can create a system of internal controls for your organization. As only one highly qualified individual or dedicated bookkeeping team would be responsible for maintaining the books instead of several random employees with varying skills, the integrity of your financial information would be far safer and better organized. Bookkeeping firms offer a high level of accuracy and security for your company’s finances.
Once a system of internal controls is established, the risk of human error can be reduced significantly. Therefore, you would be able to rest assured, knowing that there would be a system of checks and balances in place to maintain the authenticity of the records. On the other hand, if you fail to implement such a system, your business will end up going bankrupt and it would be too late for you to do something about it. Besides, every successful business knows that internal controls establish a solid foundation for growth.
2. Ensure Your Financial Records Are Accurate and Up-To-Date
With a professional bookkeeping service by your side, you will be able to make sure that your records and accounts are up-to-date. There is nothing more frustrating than not knowing whether your accounts are up to date. By hiring a bookkeeping service provider, you’ll benefit from accurate and timely account information which keeps your business financials in top order. This means you have exactly the information you need most to make sound business decisions.
Also, since everything would be handled on a cloud-based QuickBooks-centric system, you would be able to access the latest information from your business finances whenever you want and from wherever you want.
Entities today often need to use cloud and other virtual technologies to improve collaboration between their employees. This helps integrate business functions and ensures that only authorized users can access necessary data and documents. Bookkeeping and accounting service providers use technologies that business owners can access and collaborate with. This means your workflow and theirs are in sync. On top of this, your bookkeeper will handle the month-end entries and other tasks so that updating everything is off your shoulders and always timely.
3. Provide Peace of Mind
One of the main reasons why businesses of all sizes outsource their bookkeeping or accounts department is because it provides much-needed peace of mind. Forget about experiencing any accounts-related issues when you hire someone who has significant expertise. Your service provider offers all their services within a secure environment, protected by encryption, and multiple layers of additional security measures.
With information technology taking over, you need to have an expert handling sensitive financial records and data. Otherwise, you will place your business at risk. The bookkeeper commits to protecting your financial data so you can focus on running your business.
4. Pay Your Employees on Time
In addition to the above, a bookkeeping service provider will make sure that all of your employees are paid accurately and on time. Whether you pay your workers on a monthly, weekly, or daily basis, you’ll be glad to know that your bookkeeper will be on top of every transaction.
Payroll processing should always be handled by a professional. This ensures legal compliance and empoyee loyalty. In order to maintain your productivity levels and encourage employees to work hard, you have to pay them on time and keep their records accurately. This is where a bookkeeping service provider will come in handy. There’s little to no room for human error when it comes to navigating withholdings, taxes, and other details.
The service provider is likely to offer payroll processing. This would mean that all paychecks, tax forms and payments, and even timesheet management, are taken care of. You will not need to stress, as everything would be taken care of.
5. Reconcile Bank Accounts
Reconciling financial accounts is an area where most business owners could use help. Only when you get account reconciliation right, can you expect transactions to match the details of your bank statements.
Since accounts will be regularly reconciled, you will not need to pay overdraft fees or additional charges. Also, there would be no incorrectly recorded transactions holding you down and confusing your data later on. Even though accounting software has made reconciliation easier, a human touch ensures that every transaction and every financial detail is precise.
6. Manage Bank Feeds
A bookkeeper can manage all transactions brought in from the bank feed. This ensures that each transaction is organized. So, no matter what kind of transaction it is, from equipment to travel, and from office supplies to bonuses, every transaction will be in its right place, categorized and accounted for with no uncertainty.
As for transactions not included in your bank feed, they would need to be entered manually into the system. These include handwritten checks and cash payments. Moreover, there would be a need to match deposits with customer payments to manage accounts. This, too, could be handled by your trusted bookkeeping service provider, depending on the service level you choose.
7. Handle Your Taxes
Outsourcing your bookkeeping needs ensures an expert always handles your taxes. If you have a certified public accountant that files your taxes, you are going to need a bookkeeper who will serve as their first point of contact.
Since bookkeepers have a more intimate knowledge of the books, you can rely on them to work with your tax preparer and have your small business taxes on point and filed on time. Your bookkeeper will also make sure that you are able to claim refunds, make payments on time, and apply any adjustments resulting from changes in your business’s tax status, business designation, or employee status.
8. Prepare Financial Statements
A bookkeeper will prepare all major financial reports for your business, which include the cash flow statement, balance sheet, the profit-and-loss statement, and many more. Having access to updated financial statements is necessary for making important decisions and better investments, along with monitoring costs. It ensures that you have a clear picture of your operating expenses and your bottom line.
The balance sheet will show the balance of assets and liabilities, whereas the cash flow statement will let you know whether you have more inflows or outflows so that you can make necessary decisions for improving your cash flow situation.
9. Make Useful Technology Recommendations
The world of bookkeeping and finance has also seen many technological developments over the years. As you are unlikely to know about the latest solutions, you need an expert to help guide you so that you are able to harness the full potential of your organization through technological integration. Your bookkeeping service provider will also be able to suggest practical digital apps specific to your industry that will increase productivity and efficiency.
10. Fraud Prevention
Lastly, you need to hire a bookkeeping service provider for your business as it helps with fraud prevention. If you only employ an in-house accounting team, your organization may be more vulnerable to fraud. Outside bookkeeping teams stake their reputations and continued success on transparency, honesty, and accuracy. They are known for their high level of professional integrity.
In Closing
A bookkeeper can help your business succeed in a number of ways. They have the skills needed to keep your finances organized, keep you compliant, and help you make informed decisions. At the end of the day, you could use all the help that you can get to continue your upward momentum.
Sound Accounts helps business owners succeed with industry-leading bookkeeping support and sound financial advice. Connect with us today to learn more about the difference Sound Accounts can make in your business.
To learn more about bookkeeping service providers, check out our frequently asked questions and answers below.
FAQ
What specific services does a bookkeeper provide to a business?
When you hire a bookkeeper, you can expect to receive various services, including payroll processing, tax preparation, and filing, maintaining accounts, bank reconciliation, and the preparation of financial statements. However, you should consult with your bookkeeper to get an idea about the additional types of services they provide.
What are the benefits of hiring a bookkeeping service provider?
There are many benefits of hiring a bookkeeping service provider, as mentioned below.
Peace of mind
- Tax filing on time
- Accurate financial accounts
- Payments to employees on time
- Preparation of financial statements
- Use the latest technology for managing accounts
- Provides strategic information to help you make better business decisions
Why shouldn’t I just handle all my bookkeeping needs myself?
Some business owners attempt to do this. The rare few pull it off, at least for a short time, as long as they have a simple business model and only have a few employees. For most business owners, partnering with a bookkeeper allows them to focus on the core of their business. Bookkeeping service providers keep financial information organized, ensure accurate payroll and taxes, and serve as another partner in your continued success.
Attempting to juggle the responsibility of bookkeeping while trying to manage everything else in your business and life is usually too much to handle. It can lead to missed payments, lost data, human error, and even violations of compliance and regulations. Your bookkeeper will make sure you never have to worry about these kinds of errors.
