Monday, August 25, 2008

Do you know how much a BOOKKEEPER will COST you?

Accounting and Bookkeeping ServicesWhile doing some research I came across which allows you to make search of salary/compensation basis multiple categories. These are the findings on bookkeeper’s salary.

Role Wise:

Experience Wise:

Type of Company:

The above data are rough estimates basis the information filled during search. But it throws an overall idea of how much it would cost to employ someone to handle your bookkeeping and accounting. Sure was an eye opener. Such high expenses might be out of reach for a small sized firm, but bookkeeping & accounting is too crucial an area to be ignored without detrimental repercussions.

Here’s a smart alternative. Hire Finance and Accounting Outsourcing (FAO) provider. They can be a great cost-saving resource right from your basic bookkeeping, accounting to even financial reporting, tax preparation and audit. You can even hire them as your part time CFO services whenever required. It is important to scrutinize all options available and select the best plan for the success of your business.

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Monday, August 18, 2008


Accounting Services
Most small business start ups are focused on surviving the initial tough years. As an owner you neither have the time or energy to hire talented skilled employees nor the budget to accommodate them on regular basis. The result is you end up compromising. This means either doing the accounting work yourself whenever you get some time or taking help from somebody you know and trust, usually a relative or a neighbor who does your bookkeeping for you. Even if this person doesn’t have experience in bookkeeping (or very little) but as they are more skilled than you, you thank your lucky stars that you have at least some help for the time being.

Well this is fine as a stop gap arrangement, but have you ever thought that your business has outgrown such green horns handling your accounting work?

As your business expands, so will the complexities involved with a growing business. You need to realize when such a stop gap arrangement of hiring part time help to manage books just won’t work. This means your business is in dire need of professional accountants who can take your business to the next level. A bookkeeper is more focused on basic tasks, while other crucial financial objectives stay neglected.

In such a situation no one is managing cash, or monitoring profitability, or keeping tabs on how to build relationships with lenders and various business vendors. Key Performance Indicators (KPIs) are ignored which cause irreplaceable damage to business.

Be alert and recognize when you need professional help before it’s too late. If hiring a qualified CFO or controller is not within your budget, don’t worry, relief is available in the form of FAO services. FAO which stands for Financial and Accounting Outsourcing vendors are equipped with various levels of skilled personal to help you manage all your bookkeeping, accounting, financial reporting and tax preparation needs. You can now hire part time CFO or controller services when required at very affordable rates without any compromises on quality. Best part of partnering with a FAO vendor is that they don’t need you to train their staff, no set up costs are involved; there are no additional infrastructural requirements while you have a readymade team at your disposal anytime you need 24x7.

They will automate your processes along with providing much needed controls with the help of financial statements and budgets which are essential tools to help your business expand and prosper. Meanwhile your existing staff/help can be trained to other functional roles much suited to their capabilities while you can also focus all your attention to developmental activities required to grow your business.

Your accounting operations directly impact the profitability and growth of your company. If you don’t feel confident that existing help is poised to take your company to the next level, it’s time to call in a professional FAO services.

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Wednesday, August 6, 2008

Is managing your Accounts Receivable and Accounts Payable always a hasty job?

Bookkeeping Services
Accounts receivable and accounts payable (AP/AR) is about business credit. Credit makes the business world go ‘round. The vast majority of businesses cannot get by as all-cash operation. If you give credit to your customers, you have to track your accounts receivable, managing and collecting the money owed to your business by your customers. Having accounts receivable means you need to track invoices and credit notes issued to your customers and deduct payments they make. You also need to make miscellaneous adjustments, such as interest charges on overdue accounts, charge back for not sufficient funds checks, and so forth.

Accounts payable, on the other hand, involves managing what your business owes to others. AP can mean all your short-term payment liabilities, including payroll and taxes, trade payables, normal business expenses such as raw materials, products for resale, and services.

Managing accounts involves a comprehensive spectrum of transaction processing and administration handling along with keeping tabs on too many papers like invoices, bills, documents etc. However change is possible with more and more control and coordination leading to a shift in resources responsibilities from mere clerical to more analytical level. Generally it’s a month end panic or tax season panic when small business owners suddenly go on spring cleaning session to tackle all the bills, invoices and miscellaneous business documents to make sense out of them. This will lead to chaos, increased risks and missed opportunities.

As a small business owner you are more focused on strategies to grow your business rather than spend time doing routine things like managing your accounts receivables and payables. But is a very important part of your business. You do need to pay your bills on time if you want to have good relationship with vendors and you do need to keep track of who all owe you money. What if you want to do all this without hiring bookkeeping or an accountant?

Outsourcing Accounting and outsourcing bookkeeping is a cost-effective option for small to mid-sized business owners.

Major benefits from outsourcing back office bookkeeping and accounting tasks:
  1. Save enormous amount of time and costs
  2. Analysis of reports generated by outsourcing partner of historical patterns of spending and receivables shows the trouble spots to avoid in future
  3. Benefit from the significant increase in process efficiency, profitability and financial control

Hiring the right Finance Accounting Outsourcing (FAO) partner will ensure that your accounting systems and processes are smoothly managed to increase profitability. Timely reports will ensure well informed decisions are made to increase ROI. Outsourcing provides an opportunity towards successful conversion of transaction management, documents management, eliminating duplication leading to increased efficiency and productivity gaining an edge over competitors.

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