Every business needs professionals who can help maintain accurate financial records. Despite the process of keeping business data into account, many businesses fail to implement the process seamlessly. When a business lacks accounting or bookkeeping services, they are running their business blindly.
Having that said; a business should focus their needs on bookkeeping. Bookkeepers deal with the processing and interpretation of business financial data. They manage books and accounts, taxes, and a few accounting tasks. The data that bookkeepers must put into the database are financial matters. Therefore, the data must be correct, up-to-date, and comprehensive. With that in mind, accuracy is key.
Both medium and small businesses need bookkeepers and accountants. However, the roles of these professions aren’t the same. Read on to find out more.
Differences Between Accounting and Bookkeeping Services
Defined by numbers and data, both bookkeeping and accounting are essential in every business process. Small businesses rely on bookkeeping on many aspects. These include daily records of sales, payments, and purchases. In addition, they manage daybooks containing records of credit or cash payments. Thus, bookkeeping is the recording of financial transactions. On the other hand, accounting is about interpreting, analyzing, reporting, and summarizing financial data.
The general job duties of a bookkeeper are to track accounts payable and balance sheets, and to keep all business financial transactions well-documented. In addition, a bookkeeper needs to manage payroll, handle deposits, and maintain monthly financial reports, while also working on quarterly taxes and withholding. They can also perform reconciliation of bank statements to internal accounts and even help with internal or IRS audit.
Outsourced accounting duties involve auditing and analysis of financial performance as well as advising on how to reduce costs and increase profits. Despite the fact that accountants work with financial data is a vital part of the job, accounting is a critical business function that includes more than problem solving.
Most of the accountants employed by larger businesses are in charge of a wide range of finance-related tasks. Even though there are established companies who have accountants and bookkeepers, there are small business owners who seek the assistance of bookkeeping services that ensure payroll accuracy while adhering to state and federal regulations.
What Can I Get from Bookkeeping Services?
Any small business in the early stages of stabilizing the business and developing strategic plans could go for bookkeeping services. If you’re a business owner, you should maintain accurate records of purchases, sales, payments, receipts, and journal entries. After finalizing all the plans for your business, you’ll next focus on the need for updated data of financial reports and reliable intelligence.
A bookkeeper handles the everyday accounting functions for your office and keeps your book of business in order. Remember that numbers and data are the foundation of your business financial strength. You can expect a full-charge bookkeeper to manage your finance operations in relation with paying bills, billing clients, managing timesheets and payroll, and processing financial statements at month’s end.
If you’re a business owner who relies on in-house bookkeepers and accountants to receive and process financial statements each month because it’s what you’re used to, then you might want to see bookkeeping in a different light. A key benefit of outsourcing is that it enables you to customize the services you receive to match your needs. That being said, hiring a full-time bookkeeper could be the right decision to make.
If you’re in need of basic bookkeeping, then decide at this phase whether you will give your in-house staff the task of tracking your business transactions or whether you should outsource.
How Can Your Business Benefit from Bookkeeping Services?
Through bookkeeping, a business owner has the power to strategize and know financial matters well. One of the main reasons to keep track is to know if a business generates profits or losses. Due to technological advancements, many small businesses perform most of their bookkeeping through a software as compared to using traditional systems. However, outsourced bookkeeping and accounting has advantages.
Bookkeeping is an essential role to which every business owner should give a closer look. Here’s a quick rundown on some of the benefits, and some factors to consider as to why hiring an external bookkeeping service is good for your business.
1. Get unbiased and reliable opinion.
Employees from outsourced bookkeeping companies are experts who train and keep abreast of the latest accounting and technology trends. They possess skills and experience in handling clients who need a trusted bookkeeper to show the statistics of the company’s financial performance. A bookkeeping service is an intelligent way to help keep your company’s books and finances on track.
2. Get a clear view of your finances.
Giving the analytical side of business to a bookkeeping services firm is a choice of partnership built on trust. If you want a full understanding of your business transactions, an independent bookkeeper is a must. They will only complete the accounting work required to keep your business up and running and make a report on your business financial strengths and weaknesses.
3. Get lower costs.
The salary and benefits paid to an in-house bookkeeper can be reduced when you outsource one of the key components of your business. By opting for online bookkeeping services, you will be assured of the efficiency with value. By outsourcing, small business can save money on paying the salaries, taxes, and benefits given to a full-time employee.
Should You Outsource?
According to statistics, the Philippines has earned the reputation a business process outsourcing capital. Hence, businesses have started outsourcing bookkeeping services to the country. So, what to consider when hiring an outsourcing services firm? Choose one that is knowledgeable of your business niche. Look for a bookkeeper who specializes in working with companies with the similar type as yours.
Are you looking for a reliable online partner to manage your bookkeeping task? Take full ownership of your business, be in control and keep track of your next financial strategy by engaging with Outsource-Philippines to deal with your funds and assets.