Bookkeeping includes entering a fair bit of financial transactions using the double entry accounting system. Bookkeeping can be done in real-time or year-end depending on the needs of the business owner and volume of monthly transactions. Most times, business owners hire an internal full-charge bookkeeper, but many do opt to hire external bookkeepers to reduce cost. Others try to handle bookkeeping themselves.
If you’re one of the latter and are considering outsourcing your bookkeeping but you remain unsure, ask yourself the following questions to decide (i) Do I have the time to take on the additional responsibility? (ii) Do I understand bookkeeping best practices? (iii) Am I often behind on recording transactions? (iv) Do I know how to derive valuable business useful data from my bookkeeping? If the answers to those questions are unfavorable then you may need hire a bookkeeper.
The benefits of bookkeeping are many and varied. For instance, having your books organized allows your CPA to quickly review your year-end financials and speed up your tax filing process. Additional benefits include real-time monitoring of your cashflows, using accurate data to make business decisions, and finally creating efficiencies around spending.
When you hire a bookkeeper expect the following. (a) an assessment of your transaction volume, bookkeepers will ask this question to gauge your monthly pricing for bookkeeping services. (b) if you do not have a bookkeeping software, expect to decide with your bookkeeper. There are many bookkeeping software to choose from. Some of the most common ones include QuickBooks, Xero, and FreshBooks. (c) Service level agreements are also important, both you and your bookkeeper will agree on the dates you will receive your monthly financials. (d) once you both have reached an agreement you will move to the final phase of software integration and having your bookkeeper understand your business.
If you would like to discuss our bookkeeping services, you may reach us at 561-400-8837.
As always, we look forward to working with you!