Let’s have a look at what a bookkeeping service is and how it’s different from just hiring someone to enter transactions into a computer. We’ll explain what exactly a bookkeeping service does and how it benefits your business. We’ll also go over what to look for when hiring a bookkeeping service.
What Are Bookkeeping Services?
If you’re a business owner, you know all too well that you have to keep up with the never-ending task of bookkeeping. You may be doing the bookkeeping yourself, or you may have hired a bookkeeper to wade through the stack of receipts each month.
Either way, the best-case scenario is that the work is done just in time to hand things over to your accountant for tax filing. The less-than-best-case scenario is that the work gets put off. This creates a lot of stress because you’re behind on your taxes and are unsure of how the business is performing.
Neither scenario is very beneficial to you as a business owner.
Solving this common problem is one of the main goals that we have at Filing Taxes. Bookkeeping shouldn’t be that difficult or time-consuming. You should get useful financial reports regularly so you can make educated business decisions. This is our aim with bookkeeping services.
Bookkeeping shouldn’t be that difficult or time-consuming.
What Does a Bookkeeping Service Do?
A bookkeeping service can do much more than just document transactions and hand over the numbers to your accountant. With a bookkeeping service, you’ll have a team of professionals working towards the success of your business.
A bookkeeping services team looks like this:
What can a bookkeeping services team do?
Bookkeeping services start with systems set up. We want to start bookkeeping off on the right foot. The first task is to streamline processes and implement helpful software applications.
Bookkeeping systems should reduce the burden on the business owner and allow easy access to financial information.
An example of a bookkeeping system:
The bookkeeping works like this:
Payroll gets simplified:
This is just one example of a system. Your bookkeeping service will create a custom bookkeeping system that fits the needs of your business.
With a bookkeeping system in place, your bookkeeping services team can then manage the weekly or monthly finances of the business. This gives you the time and freedom to run your business and focus on the tasks that you do best.
The bookkeeping services team can look after the weekly or monthly financial functions of your business. Services can include:
With these financial functions looked after by your bookkeeping services team, you’ll have time to work on the growth of your business.
All of these financial transactions will be tracked within your accounting system. That information is then used to prepare accurate monthly financial reports.
Now for the fun part: let’s look at how the business is doing and provide insight on where things can improve.
The CPA Manager will review the bookkeeper’s work and prepare the monthly financial statements. The CPA Manager has experience analyzing the financials of many different businesses. This perspective allows her to provide insightful commentary on the reports.
Financial reports are customized for each business. The information should be easy to understand and useful to the business owner.
Some examples of insightful reports:
Keep your finger on the pulse of your business with custom reports analyzed by an experienced CPA. With regular financial reporting, you’ll see problems coming before they arrive. You’ll also always know the financial state of your business, so you can take advantage of opportunities when they come your way.
What to Look for When Hiring a Bookkeeping Service?
There is a wide range when it comes to the quality of a bookkeeping service.
We’ve seen bookkeepers who understand how to enter data into a system but know nothing about bookkeeping or accounting. This can be disastrous as problems don’t show themselves until a huge mess has been made. You then have to pay someone else to clean up the mess.
On the other hand, you can find bookkeeping services provided by accounting professionals with years of experience.
To make sure you’re getting the good kind and not the disastrous kind, here are our tips on what to look for when hiring a bookkeeping service.
Find yourself a bookkeeping service that can pass each of the tests noted above, and you’ve likely found a competent ally for your business.
Our mission at Filing Taxes is to help businesses thrive. One of the ways we do that is by providing top-quality bookkeeping and accounting services.
If the information in this article has resonated with you and you are looking for an ally for your business, check out our services. If you want to chat or have any questions, feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.