Accountants, Bookkeepers and Why You Need Both

A lot of business owners are not sure of the differences between a bookkeeper and an accountant and usually want to know if they should hire an accountant or a bookkeeper. In this article, we are going to be looking at the difference between an accountant and a bookkeeper and why you need both.

Differences Between Bookkeepers and Accountants

Bookkeeper

A bookkeeper is that person who is on a month to month basis balancing your financial statements, they are balancing your checkbook, they are making sure that your receivables are coded correctly, that your expenses are coded correctly and at the end of the month they are giving you a few statements. They are giving you a balance sheet which is kind of the State of the Union right it’s what are your current balances in all of your cash accounts and all of your receivables and all of your payables, what is your current equity in your business. They should also be giving you an income statement which shows your income and your expenses and your net profits. The third thing they should give you is a general ledger, the general ledger actually just takes the numbers from those first two reports it is the detail of how those numbers are, and then the fourth thing that they’ll give you is a cash flow statement which shows you how cash is actually moving throughout your company it is a very important statement that they should be giving you so that is the bookkeeper.

Accountant

It is usually a more expensive route to let the accountant do your monthly bookkeeping but an Accountant can do that part as well. I like to look at my accountant as my planning partner/ They are the people that I would go to talk about what you know strategically, what are my taxes going to look like, what should I be doing differently to you know change the wave, change the financial outcome of my business. Those kind of things, not necessarily the how am l coming up with more revenue but they are the person that is there to give you some ideas on how you could shift things around or maybe make a certain investment or choose to make an investment later because maybe there is a better tax advantage of it in the future kind of thing. So that is the difference between the an accountant and the bookkeeper

When Should You Have a Bookkeeper or an Accountant?

The fact is if you are not on top of your numbers if you cannot walk up to an accountant and say yes I know my income I know exactly what I’ve brought into my company, exactly what I’ve sold, I know what my receivables are, I know what my expenses are and what my net profit or net loss is and you are not waiting to the end of the year to find that out. You know you got to know those numbers so get on it right away, find you a bookkeeper someone that could take care of that you know in QuickBooks or one of those great online programs. You can hire a virtual bookkeeper where everything is done virtually, so no excuses you can find someone anywhere in the country to take care of these things for you the prices vary you know anywhere from as low as $20 an hour up to 85 dollars an hour for a bookkeeper. So you’ll see a wide array of bookkeeping prices and you just need to really look at how much time it’s going to take them, what your expectations are, what is it that they say they can do and then you need to get a little education on how to read those financial statements. Hopefully they can provide that for you as well.

I want to remind you to be very decisive and make these decisions, get that bookkeeper taken care of or that accountant taken care of.

Check out http://www.bookkeeperco.com.au for more informations and help.…

Outsourcing Bookkeeping –An Effective Way to Increase Profitability

Bookkeeping outsourcing for your business may at first seem awkward. Handing over your financial data to outside sources is quite uncomfortable knowing that this information is essential to your business. But, looking at the brighter side, these service providers are actually helping out your business. How? Bookkeeping outsourcing trims down your real-time costs by almost 50% from the cost of employing an in-house bookkeeper. click here for further information.

How Secure Would My Data Be with Bookkeeping Outsourcing?

If security of data is a top concern for most businesses, financial data is protected. They are transferred through the Internet with the use of 128-bit encryption of Secured Socket layer and is then stored in a secure server. It cannot easily be accessed by anyone except the authorized bookkeeper in the bookkeeping outsourcing service provider and with the use of biometric scanners. Significant data security is therefore attained and breach of private information is taken care of.

How Is Outsourcing Done?

There are two options available:

– Server Based Bookkeeping Outsourcing. You just send your financial source documents. You may either fax them or upload them to the server. The service provider then updates your book of accounts, you choose which software to use, whether it is QuickBooks, Quicken, Peachtree, Creative Solutions, or MyOB. You get the updated books which is stored in a 128-bit encrypted server which you may download.

– Remote Desktop Based Bookkeeping Outsourcing. This option follows similar steps. You first send through fax financial data or by uploading them to the outsourcing companies’ server. Their bookkeepers would now connect to your computer through internet securely via a remote desktop access service such as Secure VPN or GoToMyPC.com and voila you have an updated book of accounts the next day.

Outsourcing Bookkeeping –An Effective Way to Increase Profitability

How Secure Would My Data Be with Bookkeeping Outsourcing?

If security of data is a top concern for most businesses, financial data is protected. They are transferred through the Internet with the use of 128-bit encryption of Secured Socket layer and is then stored in a secure server. It cannot easily be accessed by anyone except the authorized bookkeeper in the bookkeeping outsourcing service provider and with the use of biometric scanners. Significant data security is, therefore, attained and breach of private information is taken care of.

Why Choose to Outsource Bookkeeping?

The reason you chose to have a business is definitely not to consume your time doing the bookkeeping functions. But without it, you are at a loss. You cannot run your business efficiently and effectively. By outsourcing bookkeeping, you free yourself from this task and you divert your attention to managing your business. You cut overhead costs by as much as 50%.

Bookkeeping outsourcing, likewise, ensures that financial reports are accurate so that top decision makers are not misled into making the wrong decisions and put your business at stake. Bookkeepers was trained and are being supervised and also are being backed with lots of support systems and the tools which make their tasks an error-free.

 

The real purpose of bookkeeping outsourcing is only achieved when all the services required by the client are provided by the service provider. Some would only provide you with the basic bookkeeping functions while others extend a little bit further by providing you more accounting services to the extent of preparing financial reports for further decision-making. This allows you to control your business by being able to come up with a considerable decision. Bookkeeping outsourcing is definitely a good choice to make.

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Nine Signs of an Excellent Bookkeeping Service

Too often, we choose suppliers, services, and business partners based on arbitrary reasons—the largest ad in the phone book, a company that your friend recommended, or the cheapest service. The criteria for excellence in a business partner goes well beyond a single factor, and when you’re choosing a person to handle your confidential and accuracy-centered financial records, this is very true! Today, we will look at 8 basic signs that every good bookkeeping service should exhibit.

  1. Your bookkeeper comes to you. If you have to gather all your financial records, put them on a flash drive and take them down to your bookkeeping service’s office, delays are almost inevitable! All good bookkeeping services will have mobile staff that come to you and allow you to keep your sensitive financial information strictly within the confines of your office.
  2. Knowledge of both MYOB and QuickBooks Having knowledge of both of the major financial accounting programs in Australia means your bookkeeping service has another perspective on the process of maintaining records. If your business is in its early days, they can also provide a first-hand perspective on which package will be better suited to your processes.
  3. They are highly computer literate old-fashioned bookkeeping relied on being able to rule a straight line, having quick adding-machine fingers and knowing the appropriate time to use a black pen, ablue pen, aand red pen. Modern bookkeeping is somewhat different! Your bookkeeper should be highly computer literate and Internet savvy, as well as experts in bookkeeping programs.
  4. Good communication skills Mathematical skills and communications skills are sometimes seen as mutually exclusive. This is an urban legend! Good bookkeeping services will be able to clearly explain their processes, any problems, and communicate in a timely manner that ensures the best result for your business.
  5. They can make a commitment to your business Bookkeeping is a time-consuming activity—you’ll need somebody that is willing to make your records a priority rather than squeezing you in among their private commitments.Nine Signs of an Excellent Bookkeeping Service
  6. The company is consistently evolving. While the basics of addition and multiplication remain the same from year to year, record-keeping responsibilities and tax laws never do! Look for a bookkeeping service that is constantly updating the training of their staff. click here for more details.
  7. Detail oriented A natural tendency to pay attention to details is necessary for all good bookkeeping services. A single number out of place for a decimal point can make a big difference to how your books look… so look for companies whose innate sense of perfectionism is clear!
  8. Experience Your bookkeeper should always have a good background and understanding of accounting principles as these two roles are so closely aligned in business. Have a sound understanding enable them your bookkeeper to understand the effect of transactions on the balance sheet, identify, and rectify any potential errors and also to communicate effectively with your accountant.
  9. A sense of the big picture. A single business activity can have multiple implications for bookkeeping processes—look for a bookkeeping service with substantial experience and/or full university training to ensure that there won’t be any critical aspects of your records left out.

Your bookkeeping service is as important to your business’s success as your materials suppliers, your own work ethic and your base business idea—make sure you get a good one!Also, get help from www.bookkeeperco.com.au.

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Bookkeepers Have to Be Experienced Enough

Bookkeeping errors can occur occasionally and it might lead to financial complexities. A single bookkeeping blunder can make way for awkward and strained relationships between bookkeepers and their business clients. If the handling of business financial aspects becomes too much for the in-house bookkeeper to handle, the whole accounting system is bound to become more unreliable. And this unreliability usually portends that the business is getting into big trouble. One will not be able to successfully manage a business if one does not know whether one is losing money or not. Anyway, the business owner will easily be able to determine if the bookkeepers are overwhelmed, when the reports will be produced by them make less sense. Solutions do exist for this complex problem. One may simplify the business or else they must find a more experienced and expert accountant or bookkeepers. click here for related info.

Bookkeepers and bookkeeping companies assist their clients with bookkeeping and accounting modules and customize them according to their particular requirements. These professional bookkeepers perform tasks including recording of daily financial activities, preparation of receipts, payment vouchers, tax receipts and many financial reports. They carry out all these bookkeeping activities with speed and precision. The accuracy of the final statements is guaranteed as they adhere to certain techniques. These experienced professionals are adept in giving a number of valuable tips for the proper management and the error-free upkeep of bookkeeping records and other financial statements. With the help and assistance of expert bookkeepers, one can always be sure of staying a few notches above one’s competitors in the market.

You can hire a bookkeeping company as long as it is considered a reputable company by other clients who have already availed of their services. If you are going for a professional bookkeeper, check whether they are technically competent and reliable, by checking the references. You may never know whether they would be delivering plain garbage to you every month.At this point, the bookkeeping aspects have to be overhauled again and these adjustments would prove to be very expensive. In order to avoid these risks, one should technically test all the bookkeepers in advance. If found to be competent, enlist them in the team that strives for excellence. for more details, visit : https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/2010/06/15/outsourcing-capability-sourcing-leadership-managing-bain&refURL=https://www.google.com/&referrer=https://www.google.com/

Bookkeepers Have to Be Experienced Enough

One bookkeeping error that is found to be common is the mixing up of personal assets and liabilities with that of the business. Most small businesses do not have separate accounts of their business finances and their personal finances. For instance, these small business owners may make use of a single checking account for business banking and personal banking purposes. The business owner would be regularly borrowing to pay for his business expenditures and also the other way around. And, the owner is very much likely to mislabel personal expenses as business expenses. Such a mix-up of financial aspects makes financial reports and records pretty useless for purposes of tax preparation and for utilization in aspects related to the management of the main business’s finances. In situations like these, it would be wise to employ the services of expert bookkeepers Melbourne or bookkeeping companies.…