How Reliable Bookkeeper Can Help Grow Your Agency
A bookkeeping service keeps the records of the regular financial transactions of a business that includes earnings, expenses, investment and revenue, purchase, sales etc which helps entrepreneurs to make smart business decisions. A professional bookkeeper offers multiple benefits to startups, small and medium sized businesses. Let’s have a look at the advantages that a professional bookkeeping services from Pro Finance E&E Limited offers to start-ups.
- It saves company expenditure
- Increase efficiency as it streamlines the entire bookkeeping procedure
- Unbiased opinion on the financial status of a business
The methods of bookkeeping have gone through multiple changes since its inception and each method has its own pros and cons. In this blog I have shared some useful facts about these methods so that you can select the right one for your small business or start up.
1. Old Traditional Method
Hiring an accountant or an accounting firm is considered to be the most traditional method of bookkeeping. Most of the local moms, pop shops and freelancers used to get hired for this work. This is definitely a better way to handle financial data of a business than a DIY method as you do not have to bear the burden of maintaining financial data.
As mentioned above, just like everything else, it also comes with some drawbacks like it is expensive and slow in completing the task on time. Many of such accounting firm charge high hourly fees for consultation often do not fit into the budget. Moreover, it also takes a lot of time to complete the project due to lack of technology.
Business owners often find themselves in a dilemma when they need to make a choice between appointing an in house bookkeeper and hiring an external accounting firm. This is because both of these methods are costly when it comes to hourly fees and salary. For a business with a large operation that needs continuous attention, in house accountants are recommended as it can be a solid option for them. However, for startups and small business the expense of hiring a full time accountant might be higher than its rewards.
2. Using Online Software for Bookkeeping Services
DIY software for bookkeeping services have highly impressed business owners as it offers them a great UI track their financial issues. These financial tools for small business can be amazingly helpful for businesses as it saves the company expenditure of hiring a traditional account. However, this method is proven to be more helpful for accountants than business owners.
Software is not a completely dependable method as it does not make you aware of the tax codes, regulations or requirements. it increases multiple risks for business owners who completely rely on it. for example they can miss out on deductions, disqualify themselves as a compliant business, and face IRS auditing through improper tax filing.
Even if a business owner has full faith in his accounting skills, time comes as another obstacle in this method. A business owner of a design startup company has a lot to look after and bookkeeping is something that cannot be done in a hurry. It is a time consuming task that demands concentration. That is why small business owners must think twice before adopting this method. You can also keep tabs on different clients, vendors and suppliers with a vendor management system and track vendor performance.
3. Fully Automated Method
Needless to say, we all are a fan of this third and final method of bookkeeping. The fully automated method refers to the online bookkeeping services which offer users the access to customized software. Online bookkeeping services offer a flat rate for their services removing the hassle of hourly fees and handles A to Z of your business finances. It allows business owners to sleep peacefully at night as they would know who to reach to seek financial advice without being worried about the extra costs for that.
Although 90% of business owners have admitted that this method is help and more cost effective than others, it might not be the case when it comes to extremely large organizations.