Bookkeeping is an important service to business owners in general. Whether you are a small business owner working out of your home or a traditional business operating out of a physical space, record keeping has to be a top priority for you and your business. Accurate records allow a business owner to take the proper deductions and leverage them to reduce their overall tax liability. This is why bookkeeping plays a significant role in any business. Whether you do it yourself or outsource the operation, it must be done properly to maximize the effect it has on your business. Most business owners are not in the know of all of the write offs and expenses they are to record. This is why partnering with a firm who understands the concept is very important. Record keeping is something that can make or break a business. Without effective record keeping, a business can presume at the end of the year that they have a profit until tax time comes and says otherwise. While bookkeeping services can often be quite expensive, they are an investment in your business operations.
Knowing how to operate business financials is key and a critical aspect of running a business. Without the right understanding, a business could be slowly going under while the owner make think it is profitable. Financial reports concerning profit/loss and monthly expenses are critical in understanding how the business is peforming from month to month. They tell you how much income is being generated in revenue and how much your business is spending. The latter part is very important due to the fact that we have to ensure our businesses don't have too many nonessential expenses that unnecessarily use cashflow that could be better spent in other areas. You need to have the understanding of cashflow management when it comes to business or choose a firm that can help in that area. Not all expenses are essential or even deductible if they can also be considered personal expenses.
We Partner with businesses to help them thrive via our bookkeeping service.
- We use our software - We can use our software called the cashflow manager to manage your records and provide all of the reporting features such as for mileage, categorized expenses, and profit/loss. The client is able to purchase the software or we leverage our firm's account.
- Client has their own software - This is for clients who already have something in place such as quickbooks. Depending on the account level of their subscription, they may be able to add a second account for our firm to use. If not, we will require access to the account to process transactions and records.
- Client enters transactions - We give our clients options to enter their own records. We would spend our monthly hours fact checking the records. Over the course of 90 days, we would be able to build a record book and sheet to ensure all types of expenses are accounted for and used monthly. The goal of this is to ensure no deduction is left on the table or missed.
- We enter transactions - We will provide our client access to our secure client document manager system for them to upload scanned copies of receipts and such. Our client will also be able to upload bank statements (For those who have exclusive business checking accounts) for us to process the debits/credits
What is the cost associated with our service?
- For the first 90 days, we will operate on a 4 hour minimum billed system. Throughout this duration, we will be able to develop an average of the hours needed to service your business. Whether it is taking the time to answer any questions that arise on to processing transactions and preparing reports, we will be able come up with a solid average and establish a flat rate fee. From then on, the service would be a flat rate allowing us to have a consistent billed invoice and our client to have consistency in terms of their expenses. The 4 hours would be billed at $25/hour so a minimum invoice of $100/month would be due. An overage would incur an additional $25/hour charge for the 90 duration and after the flat rate has been established. There will be a set up fee also billed. Through this set up fee, you may see additional time billed for the first invoice. this will include gaining access to your records, setting you up with our system, and creating an overview of what your records look like including any prior year tax return research. Getting this done early in the beginning will allow us to spend our monthly time more efficiently for your business.
Why do we call this a PARTNERSHIP? We will have our role and provide reports to you on a monthly basis. You will also have your role in this and it will be well defined. It is also our goal to educate and provide a much smoother process when it comes to the concept of bookkeeping and records management. Let's set up a free consultation today to see if we are a great fit for one another!