Bookkeeping Services Is An Essential Part Of Your Small Business

Considering the fact that bookkeeping is one of the most crucial functions of your small business, finding a firm providing bookkeeping services is an important task for you. However, finding an appropriate firm for small business bookkeeping is no joke; you need to find the company that matches the standards of your business. If you own a small business, you should find a bookkeeping services firm which has a good reputation and caters specifically to small businesses. Always remember that your business's books of accounts give you an idea of how you are doing, and you can make strategic decisions based on them. A professional bookkeeping service provider is a must to get a clear picture regarding your business.

Consider the following points when selecting a firm for bookkeeping services:

1. Online Bookkeeping Services
   
   

An online bookkeeping service provider will already have the system and the processes in place. Once you send them your documents, processing times will be faster than a bookkeeper doing it in-house. Such service providers for bookkeeping also provide affordable rates. You hence save on time as well as money by hiring them.



2. The Right Kind of Technology
   
   

For online bookkeeping services, the right kind of softwares and programming is very much a necessity. The service provider you hire has to have the right technology in place so that he/she can process documents and give you reports as and when you need them. You can rest assured that your books of accounts are in the right hands when you hire a reliable bookkeeping service provider.



3. Qualifications and Experience
   
   

When you are considering hiring any firm for bookkeeping services, you need to ensure that they have the right kind of qualification as well as experience for handling your books efficiently. The staff that the firm hires should not only be qualified in bookkeeping and accounting functions, but the firm in question should also have the necessary experience to prove its expertise. You can question the bookkeeping service provider regarding its staff as well as past clients so you can get an idea regarding the professionals working for your business.



4. Support
   
   

If you are hiring an online bookkeeping service provider, you need to make sure that you will get adequate support in the form of customer care. You need access to the firm whenever you have any query or complaint. Experienced firms for bookkeeping services generally also assign an individual to answer all queries related to your business's bookkeeping and to cater to your requirements. You can get the details on what kind of support your bookkeeping services firm gives by checking out its website or contacting the firm personally.

Once you find a bookkeeping service provider that meets all of the points mentioned above, you can breathe easy knowing that your bookkeeping and accounting is in the right hands. In addition to saving you time and money, a bookkeeping services firm can become your long time partner and contribute majorly to your success.

Outsourced Accounting Services: What To Expect

The success of many small businesses has been credited to the use of an accounting service provider. The advantage of outsourcing small business accounting is an integral part of the success of all businesses. As a small business owner, you might be thinking of going down the same path for your business too. However, you will want to examine and be aware of the process and how the advantages will benefit your business. The following are some of the distinct advantages of outsourcing accounting services:

1. Qualified Professionals



The first and foremost advantage of hiring a firm for accounting services is its obvious expertise in small business accounting. Reputed accounting firms hire only the most qualified and the most experienced professionals in the industry. You can hence rest assured that when you hire such a firm, your accounting and bookkeeping functions will be taken care of by expert professionals. Having such experienced staff at work will also reduce the number of errors made in calculations, so that at the end of a financial year, your books are in perfect shape.



2. Cost Savings



Another major plus point of outsourcing accounting services is that it saves costs of up to 30-40%, which is an invaluable resource for small businesses. Entrepreneurs can save costs associated with in-house hiring like training, pension plans, holiday pay etc. Hiring a third party for small business accounting also ensures that you save on renting space, as all of the work is done at another location.



3. Save Time



A lot of small business owners spend a lot of time ensuring that their books of accounts are maintained properly, even when they hire in-house staff. But handing over the accounting and bookkeeping functions to an accounting service provider ensures that entrepreneurs can focus on what they do best: business. The time saved from looking at small business accounting can be spent in business-related functions like customer service, expansion etc.



4. Customized Services



Professional firms for accounting services now provide custom-made packages for accounting and bookkeeping of small businesses. This allows business owners to avail of only those services which their business requires instead of settling for the one-for-all packages that were available before. Such customized services and personal attention ensure the accounting services are of utmost benefit to your business.

A Word of Caution

The only thing you need to be careful about while hiring a firm for your small business accounting is steering clear of the shady firms. You need to sort through the flood of bookkeeping and accounting service providers available today and find the one that is suitable to your small business. You also need to ensure that your data is protected at all times by the accounting service provider you hire.

If you manage to find the appropriate firm to hire for accounting services, your business can have all the benefits mentioned above. The service provider will, in turn, become an asset for you and increase the profitability of your small business in the longer run.

7 Reasons Why QuickBooks is Good for Accounting and Bookkeeping Of Your Business

As a small business owner, you must be spending a lot of time on your accounting and bookkeeping functions. QuickBooks is renowned accounting software for small to mid-sized businesses which can help you save time. It is being used by many businesses for maintaining accurate business records and is a trusted accounting and bookkeeping solution. QuickBooks is also on the service offerings of many reputed firms which provide accounting services and bookkeeping services. Listed below are 7 reasons your business should not miss QuickBooks as a bookkeeping solution

1. Saves Time
   

QuickBooks automates the simple tasks of your accounting and bookkeeping of your business, so that you save the hassles of paper-based bookkeeping. You can free up valuable time from the financial functions and dedicate that time to developing your business or catering to customers.




2. Affordable

QuickBooks is one of the most efficient accounting software available today, making it a very useful tool for small and medium sized businesses. Compared to hiring a bookkeeper, QuickBooks is a much cost effective solution for accounting and bookkeeping.



3. Customized Solution
   

You can customize QuickBooks according to your business requirements. As an accounting software which is applicable to various industries, QuickBooks is designed to be flexible and adaptable to each business separately. For example, it can be customized and used for accounting and bookkeeping for a numerous business types, whether it is a restaurant, franchise, sports facility, medical practice, dentistry or salon. You can ask your bookkeeping service provider to customize QuickBooks according to the industry you work in.



4. Reduces Errors
   

QuickBooks minimizes the chances of an error that a bookkeeper might make while typing. Calculations are done automatically in QuickBooks, which reduces the chances of a human mistake in accounting and bookkeeping of a business. While using QuickBooks, data can also be shared with business applications as well as popular programs like excel sheets, word documents, Outlook etc.



5. Reliable Solution
   

QuickBooks is the most reliable accounting and bookkeeping software available for small and mid-sized businesses. Some of the most reputed bookkeeping service providers provide QuickBooks solutions to small and mid-sized businesses and help them in maintaining their books of accounts. It is one of the most trusted and reliable software, being used by thousands of businesses all over the world. You can rest assured that your bookkeeping functions are being taken care of by a proven, trustworthy software.



6. Grow your Business
   

With QuickBooks into the picture, you can grow your business with the backing of strong accounting and bookkeeping records. With up to date balance sheet, profit and loss statement, statement of cash flows etc., you can get business loans, line of credits or plan the expansion of your business easily.



7. Automates Processes
   

You can automate most payment processes through QuickBooks. No more of printing checks, going to the bank or stamping envelopes. With QuickBooks you can click a button and make the payment. Banks also allow downloading of monthly bank statements into QuickBooks for easier reconciliation. If you don't have QuickBooks software for your business, you can contact an experienced bookkeeping service provider for a customized solution.

There are many experienced accounting and bookkeeping service providers which provide customized QuickBooks integrated solutions for small to midsized businesses. You should select an end-to-end service provider who can be trusted and can provide on-demand support post installation too. Having QuickBooks to manage the accounting and bookkeeping of your business gives you a powerful tool for managing your books with complete ease.

Is Using Outsourced Accounting Services the Right Step for Your Small Business?

For a long time, using outsourced accounting services was an option only for larger corporations. However, of late, the cost effectiveness of outsourcing accounting functionalities has made it an attractive prospect for small businesses as well. A small business owner is generally burdened with taking care of all the functions of the business with very little resources at his/her disposal. Outsourcing to expert accounting service providers has the potential of saving a lot of resources and hence is an attractive proposition for small business owners.

But the question most small business owners are pondering over is: Does hiring a bookkeeping and accounting service provider make sense for small businesses? Judging the answer to this question is tricky and requires evaluating the pros and cons of outsourcing accounting.

There are advantages attached to hiring an outsourced accounting service provider which are especially applicable to small businesses:

1. The main advantage of outsourcing accounting functions is its cost effectiveness, which can save your small business up to 40% costs as compared to in-house staff
2. Accounting service providers have expert staff who can handle all your small business accounting requirements with ease
3. You can choose to hire only those services which are applicable to your business
4. Outsourcing accounting frees up valuable time which you can dedicate to the core business activities
5. You are relieved from the hassles of hiring, training and retaining in-house staff

There is only one small disadvantage when it comes to hiring outsourced accounting services: Too many companies providing accounting services which makes it tough to decide which one to hire. If you hire an inefficient service provider, it may cost your business a lot more. So select an accounting service provider with a lot of care, taking into consideration the following factors:

1. Is the bookkeeping and accounting service provider experienced in your industry?
2. Can the firm give valid references of its current/past clients?
3. Does the firm have a reputation of providing accounting services for small businesses?
4. Can the firm assure a doorstep service if required or is it purely outsourcing company based miles away within US or outside US?
5. Is the accounting firm ready to give written documents regarding guarantee of service, terms and conditions etc?
6. Is the accounting service provider flexible enough to allow you to scale your bookkeeping and accounting requirements up or down?
7. Does the firm providing outsourced accounting service have suitable data security measures to protect sensitive information related to your small business?

If you get satisfactory replies to all of the above questions, you should rest assured that the accounting service provider you are considering to hire is suitable for your small business.

The advantages of outsourcing small business accounting far surpass the disadvantages of outsourcing accounting functionalities. If you work with the right service provider, it can become a valuable asset to your small business. As a small business owner, you should hence consider availing the services of a professional bookkeeping and accounting service provider so that they can focus on the core activities of the business and grow it appropriately.

Hire an Accounting and Bookkeeping Service Provider for your Restaurant Business

The restaurant business is one with limited profit margins; in the tough financial scenario today, it has become imperative to manage the accounting and bookkeeping of a restaurant business efficiently. The smallest mistake in the financials of a restaurant can force even an expert restaurateur to quit the business. If you check out business brokers in your area, you will come to know that the highest businesses for sale are in the restaurant industry. In such a situation, experts in the field suggest in-house cost-cutting measures like hiring an accounting and bookkeeping service provider for taking care of the books of your restaurant business.

A majority of restaurants fail due to the inadequate financial knowledge of the restaurateurs and due to the fact that many of them deal in cash and in the end lose out on the record keeping for their business. If you do not want your restaurant business to fail, it is of utmost importance that your books of accounts be healthy. While it is true that restaurateurs have very little resources to hire a professional accounting and bookkeeping service provider for their business, the ‘I will manage it myself’ approach can be fatal for the business.

As a restaurant business owner, the following are some points you need to keep in mind when it comes to accounting and bookkeeping for your business:

• Attain basic knowledge
The most visible mistake of the restaurant industry is that the owners have very little knowledge about accounting and bookkeeping. While it is not necessary to know the whole process in depth, restaurateurs should at least be aware of some basics like Profit and Loss Statements, Balance Sheet, Statement of Cash Flows etc. You can leave the rest of the financial details to your accounting and bookkeeping service provider, but these basic statements are a must-know for you as an owner.

• Have a proper accounting system in place
As an owner, you will be unaware of the financials of your restaurant business if you don’t have a well-organized accounting system in place. Softwares like QuickBooks, Great Plains, Peach Tree, MYOB etc. are a great tool for your day to day accounting and bookkeeping. If you can’t find a software that is suitable for your business, you can even get a custom-made one developed for you through an accounting and bookkeeping service provider.

• Have a 4-week accounting period
A 4-week accounting period is recommended for restaurants by accounting and bookkeeping firms, due to the fact that it has many advantages for the business. The numbers compiled for 4 weeks are then comparable for performance and earnings to ,say, the last month or the same week last year. Also, in a system when you pay staff bi-weekly, it may eliminate the need for payroll accrual.

• Record all your business transactions
If you can’t do this yourself, hire an accounting and bookkeeping service provider specializing in restaurants. But recording ALL transactions of your restaurant is a must-do for a successful restaurant. (It is the secret to the success of many restaurant franchises today.) Don’t depend on your bank statement or credit card bills for a list of income and expenses. All transactions must be kept in a record which will be useful at the end of the year.

• Hire a professional accounting and bookkeeping service provider
There are many professional accounting firms which can work as back-office service providers. Many of them even specialize in accounting for the restaurant industry. They charge anywhere between $15-40 an hour and can be an easy alternative to hiring someone in house.

As a restaurant owner, you should take the above-mentioned points into consideration for a healthy business in this time of financial crisis. A professional accounting and bookkeeping service provider will help you to not only ride through the recession, but also ensure the sustenance of your business in the longer run.

Analytix Solutions was One of the Elite Exhibitors at the New England Xpo for Business

Analytix Solutions, a prominent back office service provider for accounting, bookkeeping and part time CFO services in New England, participated in the New England Xpo for Business on May 19th, 2009. The highly anticipated B2B show had over 400 exhibits of innovative products and services which visitors could tap into for information. Visitors thronged the booths with doubts related to small businesses and appreciated the chance to interact with so many business professionals for expert tips.

“We met a lot of visitors at this Xpo, most of whom were small business owners, having queries regarding managing their business finances in the most cost-effective way,” says Satish Patel, President of Analytix Solutions. “Our tips on cutting up to 40% of their accounting and bookkeeping costs attracted a lot of visitors and we are glad of the phenomenal response to our participation.”

About Analytix Solutions

Analytix Solutions is a one-stop back office service provider for Accounting & Bookkeeping and other value-added services like IT, Operations and Marketing to small and mid-sized businesses. Based in Boston, Mass., Analytix’s clients typically range from $100k to $10M in annual revenues. To know more about Analytix Solutions, visit www.analytixsolutions.com.

Accounting Basics: Current Assets - Accounts Receivable

 Almost as common a term as cash nowadays, accounts receivable is an accounting term meaning amounts owed to a business by other business or customers (individuals or otherwise). An accounts receivable arises anytime when goods are sold but cash is not received immediately; thus when you purchase something for cash at Walmart you are not creating an accounts receivable. If you commit to purchase something (say a lawnmower) and you are offered the option to pay next month, now you have created an accounts receivable on the retailers books.

Unlike a note receivable (to be discussed next), there is generally no signed agreement beyond an invoice for an accounts receivable. They are generally short term in nature (less than a year, if not only a couple months). Because of their short term nature, they are generally listed as a current asset on the balance sheet next after cash.