How to Save Time and Money with Professional Bookkeeping Services

By Kaleem Ulah

August 24, 2023

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How often have you been told that you need to hire professional bookkeeping services since you started your small business? How frequently have you thought to yourself that there must be a method that is superior, simpler, or more effective for the management of your accounting responsibilities?

If you’re like most people who own businesses, your response is undoubtedly “A lot.” As soon as you opened your doors for business and made your first sale, you have no doubt been approached by partners, advisors, and other well-meaning associates. They most likely suggested that you make use of online bookkeeping professional services to assist you in maintaining accurate books and finances for your company.

If you have disregarded that advice up to this point, now could be an excellent time to start investigating before you make things worse for yourself. A bookkeeping service will record your payables and receivables or manage your payroll services and ensure your company’s safety, scalability, and success. In this post, we will be explaining ways professional bookkeeping services save you both time and money.

Why Efficient Bookkeeping is Critical for Small Business Success 

You can obtain a reliable stage of your organisation’s success through accurate bookkeeping. Additionally, it offers information you can use to make general strategic decisions and a benchmark for its goals regarding revenue and income. Once a company is up and operating, it is necessary to devote more time and financial resources to maintaining accurate records.

Rather than doing their bookkeeping, most small businesses opt to hire a bookkeeper or contract the work out to a professional agency. One thing that should be brought to your attention is that many people intending to begin a new business often pay more attention to the significance of some issues, such as the necessity of keeping detailed records of every penny spent.

Useful link: How To Choose The Right Bookkeeping Services For Your Business

Common Bookkeeping Challenges Faced by Small Business Owners 

The owners of startups and small businesses face various challenges daily, with accounting-related tasks among the primary challenges that most of them struggle with.

Common Bookkeeping Challenges Faced by Small Business Owners

We will list below eight of the most common problems with bookkeeping that small businesses experience. 

  • Cash Flow
  • Delayed Receivables
  • Delayed Payables
  • Payroll Management
  • Tax Preparation
  • Tracking Expenses
  • Bank Reconciliation
  • Fraud

Time and Money Costs of DIY Bookkeeping 

Let’s start by calculating the cost of DIY bookkeeping! If you do your bookkeeping, you can save money by not having to pay a bookkeeper to perform it every week. So don’t think that means your books are being kept for nothing! Time is still involved, and money is always a factor. Let’s pretend you’ve decided to tackle this project independently, despite your lack of experience. What is the value of your time, exactly? Let’s say $100 an hour (a low estimate, but it makes the math easy). You’ve decided to spend an hour daily on administrative tasks like bookkeeping, invoicing, checking cash flow, and categorising transactions. 

Budget an extra day or two per week to complete administrative tasks like payroll processing, tax preparation, and receipt scanning. Keeping on top of things will require a minimum weekly investment of $600 to $700 in your time. Not to mention learning how to effectively use your bookkeeping accounting software, following up on overdue payments, and figuring out your tax obligations! That’s definitely a lot of time and energy.

1. Mental Expenses

Consider not just the monetary costs of your bookkeeping and the time and mental effort you expend. We wish time and resources were boundless, but alas, there are only 24 hours a day. Why not put your mental energy into something that excites and inspires you instead of something that drains you?

Doing the books yourself is optional when running a business. If keeping the books isn’t your thing, find someone who is. The advantages to your company, finances, and sanity will far surpass the nominal costs.

Benefits of Professional Bookkeeping Services 

Below are some of the benefits of professional bookkeeping in comparison with DIY bookkeeping.

Benefits of Professional Bookkeeping Services

1. More Accurate Financial Records 

When it comes to filing taxes, having financial records that are accurate and up to date is essential, and professional bookkeepers can help ensure that this happens. Keeping detailed records is crucial to the success of any company, but it is essential when it comes to tax preparation. Bookkeepers record all transactions accurately and promptly using the best online software and techniques. You can be certain that you are paying the appropriate taxes and not missing out on any tax benefits if you keep proper records of your financial transactions.

2. Time Savings and Increased Productivity 

Professional bookkeeping services have the knowledge and experience to manage all of your accounting responsibilities promptly and accurately. They will take care of all the necessary paperwork, freeing up your time to concentrate on expanding your company. Bookkeepers will help you organise your accounts using the most up-to-date software and technology, and they will make it simple for you to access all of your financial data at any time.

Everyone working at a startup or a small business has one of the most valuable resources: time. There are only 24 hours a day, and to function correctly, you must spend some hours sleeping (in theory, at least). If you and your team can find ways to save more time, you will immediately have an advantage over your competitors. You will have more time in your day if you outsource tedious chores; however, this will typically come at a cost. After all, highly skilled specialists typically charge relatively high prices for their full services. 

3. Access to Expertise and Specialization 

Bookkeepers have years of experience and specialise in all parts of bookkeeping, including taxes, which can save you time and money in the long run. They offer the expertise and knowledge to reduce the amount of taxes you owe, assist you in avoiding making mistakes, and guarantee that you fully comply with all tax rules and regulations. At tax time, you will have more time, money, and peace of mind due to this.

4. Reduced Business Risks and Improved Compliance 

The capacity to detect fraud and embezzlement is one of the benefits that come with accounting risk reduction. If you have employees or business partners, there is always the risk that your company will be a victim of fraud or embezzlement. You may not want to think about this, but the reality is that it is always a possibility. If you have a trustworthy and competent bookkeeper, he will be able to identify questionable financial dealings for your company. For instance, if your business partner uses the firm to pay $1,000 per month to an unknown consultant you have never heard of, your company’s accounting records will show proof.

Bookkeepers know the most current tax rules and regulations and can assist your company in meeting all of the criteria for filing taxes. Maintaining compliance with all of the most recent tax laws and regulations can be a full-time job in and of itself. However, it is essential to maintain compliance to avoid incurring penalties and interest charges. Bookkeepers have received training on the laws and regulations about taxes, and as a result, they can assist you in avoiding mistakes and ensuring that you comply. 

5. Cost Savings and Improved Profitability 

In general, most organisations believe that outsourcing is an additional expense for their company, so they perceive it to be unnecessary. This is in no way an accurate perception at all. The reverse is true. Most small business owners who outsource their accounting are always eager to cut their costs, but most importantly, they do not want to sacrifice the quality of their work.

Most businesses can supply their services at reduced costs thanks to outsourcing, which results in significant cost savings for those businesses. In addition, outsourcing allows you to save money on the costs of full-time or part-time employee benefits, salaries, taxes, and office supplies. You only pay for the things that you use. When full-time staff is hired, there is no reduction in productivity expenses associated with this decision.

Tips for Choosing the Right Professional Bookkeeping Service 

To be on the safer side of your business, you need to choose a professional bookkeeping service. This will give you peace of mind and, at the same time, increase your business generally. Below are tips to follow to select a good bookkeeping service.

1. Look for Relevant Industry Experience

Beyond the day-to-day management of your company’s accounting activities, your outsourced bookkeeper should understand your industry and how it relates to your particular financial situation. This is because the industry you’re in can have a significant impact on your finances. When it comes to spotting oversights and patterns in your data, the ability of an accounting business is directly correlated to how well-versed they are in the operations and trends of your industry. In addition, this can assist you in avoiding making any reporting mistakes and making the most of any potential tax savings. 

2. Check for Certifications and Qualifications 

When establishing a bookkeeper’s level of expertise, qualifications are an extremely important factor. It is necessary to look for someone superior to the current candidate for this position. Although a bookkeeper does not need a specific degree to work in the field, applicants should have at least some college-level accounting experience. The holder of a bachelor’s degree in accounting guarantees that the bookkeeper is proficient in accounting fundamentals. Learning accounting also helps learners acquire abilities in cost accounting, auditing, public accounting, and so on.

3. Consider Communication and Collaboration 

An effective bookkeeper should have strong communication and interpersonal skills. He must be able to take your calls and answer them promptly to clear up any questions or concerns you may have regarding cash flows and money.

Bookkeeping Services | How to Save Time and Money with Professional Bookkeeping Services | The Kalculators August 2023

Any error in the data might lead to significant problems for your company, as bookkeeping information and current accounting are treated as highly confidential information. 

4.  Compare Pricing and Services 

Instead of hiring an in-house bookkeeper, professional accounting services entail outsourcing your bookkeeping to a third party. This organisation has a professional bookkeeping staff who keep your records up to date and keep you informed. Professional accounting services often charge an in-house bookkeeper a monthly fee rather than a salary. And since they perform almost the same services, you can get your business bookkeeping of high quality at a cheaper price 

Conclusion

Even though you will have to invest money to hire a bookkeeper, in the long run, you will end up ahead of the game financially. Skilled bookkeepers are familiar with the financial landscape of their clients. They are skilled at assessing procedures and can see the bigger picture. At The Kalculators, we modify our bookkeeping services to accommodate the specific requirements of your business. We become familiar with the nature of your company, its operations, and your financial constraints. We render services small business owners need the most for their business expansion. We use the latest software for the management of your company’s financial processes. Contact us today for a free consultation and how to get started with your business bookkeeping.

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About the Author / By Kaleem Ulah

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Kaleem is CEO & Author at "The Kalculators". With more than 10 years of experience in financial services, He built Kalculators to transform your financial challenges into strategic triumphs!

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