A dedicated bookkeeping staff can be very expensive. In addition to employee wages and benefits, the business owner must invest in office space and equipment, accounting software and training. There’s also the need for a supervisor for the new staff, which requires either another new staff member or new duties for an existing employee, if not the business owner. A bookkeeping service effectively handles the cost and time of employing and organizing a bookkeeping department for the client business, in exchange for a competitive monthly fee.
In exchange for that fee, a bookkeeping service takes over a business’ accounting needs. There’s more to that than just data entry. A bookkeeping agency can monitor accounts payable and receivable, ensure timely billing, prepare periodic financial statements, reconcile bank accounts, assist with tax preparation and handle payroll. Choosing an online service can even provide daily reports of operating results – every morning the owner can see how the business did the previous day.
Handing over a business’ accounting needs may feel like losing control of the business, but this is not so! Instead, outsourcing to a bookkeeping service can help the business owner gain more control, as it frees up his most valuable resource – his time. That’s time that can be devoted to other areas, and the financial savings can be reinvested into the business.
Having a third party handle a business’ accounting provides one other important benefit – security. A bookkeeping service will be well-versed in generally accepted accounting practices and internal accounting controls. In addition, there’s a built-in control for efficiency in having a firm handle the books – the person taking care of bank account reconciliation isn’t writing or depositing the checks. That extra degree of separation provides a level of impartiality that’s important for accuracy.
A bookkeeping service can be a small business’ most important partners. Many businesses report increased cash flow within months of contracting a bookkeeping firm. If a business is looking to save money and expand, outsourcing bookkeeping can be an important first step.Original article found at: http://www.superpages.com/supertips/bookkeeping-service.html