Accurate bookkeeping is extremely important for any business. Keeping a close eye on gross income will allow you to determine the financial stability of the business and whether you are on track to meet periodic goals. Tracking expenses carefully will also allow your business to be more efficient. Having a good idea of your financial situation at all times will help your business grow, and allow you to determine if your business is headed for financial trouble.
Bookkeeping is also required for tax and regulatory reasons. Failing to track revenues can make tax time extremely difficult and burdensome. If you do not monitor and report regularly, some business forms may end up violating state laws regarding record keeping and annual reporting.
Why Use an Outside Bookkeeping Service?
Bookkeeping is necessary, but very time-consuming. Business owners often find that they struggle to keep up with the necessary paperwork and administrative tasks. Often, business owners do not know much about bookkeeping and have a hard time learning the ropes while also keeping up with the daily demands of business activities.
Many business owners are very good at what they do, but bookkeeping is a struggle. When owners try to do their own bookkeeping, it takes up valuable time that could be spent doing what would actually make money for the business. That is why many business owners turn to outside resources for bookkeeping services. The Packey Law Corporation can keep track of your accounts, so you do not have to deal with them.
Types of Bookkeeping Services
Bookkeeping services vary a great deal. The specific variety that you should use will depend on size and type of your business. Packey Law Corporation offers may services, from extensive to minimal, to meet your business’s needs.
General Bookkeeping Services
For small and some medium-sized businesses, you may only need general bookkeeping services. A general bookkeeper will deal with each and every financial transaction for your business. The bookkeeper will classify each transaction into one of several categories so you can easily tell where your money is spent or how money is earned. Classification allows you to understand which products or services are doing the best and where you might be able to cut costs.
General bookkeeping services will also often include basic invoice tracking and taking a close look at bank account reconciliations to ensure that everything is recorded accurately.
Full-Scale Bookkeeping Services
More complicated businesses may need additional bookkeeping services, such as tracking accounts receivable and accounts payable. More in-depth levels of accounting services also usually involve preparing financial statements for both internal and external use and dealing with the complex issues that often arise in making sure payroll runs smoothly.
For those companies that use inventory in service projects regularly, tracking what comes in and goes out for each project is important. Bookkeeping services to monitor these often-complicated transactions is vital to determine which projects have good return and which projects should be avoided in the future.
Full-scale bookkeeping services often work in conjunction with tax planning, preparation, and filing as well. Having someone to do the books that understands tax requirements from the get-go can save valuable time and money at tax time. Making estimated tax payments on time and in the right amounts can also save money from penalties and interest as well.
Training and On-Call Services
Some companies would rather employ an in-house bookkeeper to track their financial information or do it themselves. In some situations, this do-it-yourself approach may be appropriate, but many business owners are unsure of where to start. At Packey Law Corporation, we can provide training and resources to help you track your own financial information. Whether you need the basics or an in-depth run-through of QuickBooks, our team can help. We can also be available on an on-call basis if you run into problems along the way.
Benefits of Using an Outside Bookkeeper
There are several other benefits to using an outside bookkeeper other than saving time and money. As you decide how you want to deal with tracking financial information going forward, consider these benefits of using an outside bookkeeping service.
Another Set of Eyes
Even if you are experienced with bookkeeping and tracking financial data, mistakes can happen. Having someone else take a look at your financial status can help you correct errors or catch discrepancies long before they cause problems.
As a business owner, you likely put your blood, sweat, and tears into developing, maintaining, and growing your business. Your business is like your baby. While that passion is great for the business, it can color your opinion when you look at the books. Having an outside opinion that is unbiased can help you keep your financial situation in perspective, whether that means celebrating successes or dealing with losses.
No Turnover Issues
Good help is hard to find. If you hire an internal bookkeeper, there is nothing stopping that person from leaving the company at virtually anytime, even though you spent time and resources training him or her. Turnover can increase costs by retraining and the general confusion and inefficiencies that take place when someone takes over another person’s job. You can avoid the cost and risk associated with turnover by using an outside bookkeeping service.
Hiring an expert internal bookkeeper can be expensive, and you may not have enough work to fill someone’s time for full time or even part-time employment. You can save costs by using an expert that is on call when you need him or her. You also save money by avoiding having to pay employee benefits and other related costs of adding another employee.
Packey Law Corporation and Your Business: An Excellent Combination
Packey Law Corporation has the expert services you need to ensure that your bookkeeping and recordkeeping needs are met. Good record keeping will lower your chances of being audited and help you deal with an audit effectively should it occur. Call 916-564-1600 for more information or to set up a bookkeeping consultation. We can create a service package that meets your business’s unique needs.