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FAQS
The Answers You Need
WHY SHOULD YOU HIRE A BOOKKEEPER?
1. You get insight into your business every month.
Every month, your bookkeeper prepares an income statement, balance sheet and statement of cash flows. These financial statements give you the essential info you need to run and grow your business.
2. You may pay less in taxes. Bookkeepers can make sure you are including all of business expenses.
Plus, the cost of hiring and working with a bookkeeper is also tax-deductible.
3. You could pay your accountant less.
Since accountants generally charge more for their time than bookkeepers do, it means you’ll end up paying more. If you have a bookkeeper do the job properly in the first place, you’ll save money in the long run. Even if you keep up with your books any mistakes will take time to fix.
4. You will save time.
When you spend less time on administrative tasks like bookkeeping, you’ll will be able to spend money time on money making activities or maybe even have some free time.
5. You might even increase your profits.
One survey shows that, on average, companies’ profits increase 16% after they hire bookkeepers. One reason for this is that bookkeepers have the experience to efficiently manage your bookwork, giving you more time to focus on other areas of your business (like increasing profit).
WHY SHOULD I OUTSOURCE A BOOKKEEPER?
1. Saves You Money
Saving money is arguably the number one reason. Hiring, training, and employee benefits can be expensive. With outsourced bookkeeping services, you don’t need to worry about that. You also won’t need any extra equipment. Outsourcing ensures you only pay for the work done.
2. Your Business Is in The Hands Of Specialist
Outsourcing accounting and bookkeeping services place your business in the hands of skilled, reliable professionals.
3. Allows You to Scale at Your Pace
With outsourced bookkeeping you can increase or decrease when you need to.
4. Access to Accounting Systems And Tech
It is hard to keep up with the latest technology and trends in every industry. You can leverage your bookkeeper’s knowledge, experience, and discounts to utilize the best technology available.
WHAT ARE SOME SIGNS I NEED A BOOKKEEPER?
1. Doing it yourself is taking too much time.
2. Your Books are not up to date, ever.
3. Your accountant ends up doing the bookkeeping.
4. Tax time is a mess, lots of questions from your accountant.
5. Cashflow is unpredictable.
6. Sales are up, but profits are not.
SHOULD I OPEN A SEPARATE BUSINESS ACCOUNT?
YES! Mixing business and personal funds can cause you to file inaccurate tax returns and leaves you open to an IRS audit.
WHAT ARE THE DIFFERENCES BETWEEN AN ACCOUNTANT AND A BOOKKEEPER?
Bookkeepers are responsible for on-going maintenance of a client’s bookkeeping.
For Example:
Compiling data on a daily basis
Categorizing expenses
Reviewing for accuracy
Reconciling bank statements
Generating financial statements
Accountants use the accurate and up-to-date reports by the bookkeeper to provide tax services and tax planning.
SHOULD I USE CASH-BASIS OR ACCRUAL?
Cash-basis accounting is a simpler way to manage your books. You only record transactions when you physically make or receive a payment.
With accrual accounting, you must record money whenever a transaction takes place, even if you don’t physically give or receive money.
Accrual is more accurate, especially if people do not pay as soon as you invoice them.
HAVE A QUESTION NOT INCLUDED?
Get in touch! We are always happy to answer questions. Making your life easier is our 'why'.