Bookkeeping is the process of keeping track of the financial happenings that take place in any business. No matter how big or small the business is, it is important that proper financial record keeping is executed.
Historians don’t know for sure exactly when bookkeeping practices came into existence, but they do know that some crude form of it took place as far back as 2600BC.
Knowing exactly what is happening with the money that is coming into the organization tells the business owner many important things. The financial records can indicate if the business is making a profit. It can indicate whether the business is growing as it should. It can also help to identify any weaknesses in the company on a financial level.
The Company’s Obligations
The record keeping helps to keep the company on track when it comes to what it has to pay out. It lets the business owner know what their expenses are. It can also help to keep the finances organized so payables are paid on time. Companies are also expected to pay taxes. The bookkeeping records give a clear picture as to how much tax is to be calculated.
A business is continuously changing throughout its operations. There are constant decisions that must be made. For example, decisions as to whether the company should make additional investments. The bookkeeping records can be used as a resource to help with these decisions. The financials give the picture as to how strong or weak the company is financially and what extra financial burdens it can take on if necessary.
Every business owner wants their business to be an asset and not a liability. The only way they can truly know this is by what the financial figures tell them. The bookkeeping records contain the data that tells them this. These records can help support getting a loan.
Outsourcing Your Bookkeeping
If you’re looking for bookkeeping solutions for a small business, there are several services to consider. Outsourcing all, or part, of the day-to-day financial administration, can free business owners to focus on providing products and services to clients. You’ve got to pick a trustworthy firm that uses up-to-date software to manage the books. Here is a list of some businesses that have good reputations and experts to meet the needs of most companies.
Since 2009, Merritt Bookkeeping has given fiscal management support to hundreds of businesses in the United States. The firm specializes in managing income and expenses for small businesses. Merritt connects your credit card, bank accounts, and bill payment app to QuickBooks Online, ensuring that your company pays bills promptly. For $150 a month, the service adds value to businesses on a budget.
Bookkeeper.com is the one-stop shop for keeping track of expenses. For 25 years, the firm has offered payroll, tax, and bookkeeping solutions. The cost is dependent on how many transactions a business has per month with three packages that range from $97-$485. From managing QuickBooks setup to reconciling accounts, the company stays on top of the profit and loss by providing clients with monthly financial statements to review.
Bookkeeper360 provides cloud-based tax, bookkeeping, and payroll solutions on the Xero platform. The company has helped hundreds of firms, offering packages for start-ups and well-established businesses, including expense management and bill payment. With an account manager assigned to your business, owners are sure to relish the personalized service for only $249-$1,149 per month.
Choosing a firm to manage the bookkeeping is critically important to your company’s success. Evaluate your needs to figure out which choice best suits you at this time in your firm’s development. Bookkeeping decisions can make or break a business.