What is a Bookkeeping Service?

A bookkeeping service is an accounting firm that specializes in handling client business’ financial records. Bookkeepers record their clients’ financial transactions, keeping track of the money going in and out of a business. Using a  bookkeeping service instead of an in-house bookkeeping staff can save a business a great deal of money.

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



 Look for that 'Great' Accountant

• Does the accountant understand the type of business you operate?
• Has the accountant had experience in your type of business with other clients?
• Do you think the accountant is interested in how successful your business can be and can the accountant contribute to that success?
• Is the accountant experienced enough to be able to offer services beyond the normal. (e.g, can the accountant help you prepare your business forecasts and a business plan?)
• Is the accountant going to be readily available for you when you need answers to questions by telephone or email?
• Will the accountant be available to provide financial and strategic advice personally, or do you have to go through other staff or professionals? (If other professionals are consulted, the cost may be greater for you.)
• Do you feel comfortable talking to the accountant
• Do you feel confident that issues are explained clearly so that you are able to make informed decisions?
• Is the accountant someone that you think you can work alongside?
• Do you think the accountant would have a concern for the success of your business or does it appear to be ‘just another job’ to him or her
• Would the accountant be able to visit your business premises if you need service or are they located in another part of the country where they would not be able to visit regularly or vice versa?
• Would you be confident that they could fight for you if there was an argument with the Tax Department?
• At the end of the day, would you have absolute confidence in the accountant you were considering or not?