Signs that Indicates Your Small Business in Ready for Outsourced Bookkeeping Services

/in /by

Being a small business owner, most of the time you are occupied in running your business ignoring some important tasks such as managing your books. Moreover, you cannot afford to hire a fulltime in-house bookkeeper to track your financials. Or, make the switch to an outsourced bookkeeping service provider to save time, money and quite frankly, the headache that comes with bookkeeping.

1. You Cannot Spend More Time on Your Core Business Processes: Back office tasks such as inventory reporting, payroll as well as managing receivables and payables are very important. However, they take a significant amount of time away from your core business.

Outsourcing your bookkeeping needs transfers these critical tasks to a team of experts, freeing up your time to focus on value-added activities such as building better client relationships, exploring new partnerships and expanding your business.

2. Your In-house Resource Has Let You Down Too Many Times: Many small businesses hire part-time or fulltime bookkeeper to manage the books, but what if your part-time in-house bookkeeper:

  • Is unable to keep up with changing tax regulations?
  • Often goes on vacation for two weeks?
  • Leaves you entirely without informing?

Although this is a conventional way to find a bookkeeping solution for your business, when you’re relying on a single person to keep your books up-to-date it leaves your business at risk. By hiring an outsourced bookkeeper to manage your books, you gain access to an entire team of professionals who are available whenever you need them to be. This ensures business continuity and also gives you peace of mind.

3. Your in-house Resource is More Expensive: Aside from the risk of entrusting your precious financial documents to a single person, there is also the issue of cost. A typical full‐time bookkeeper can costs you something your small business cannot afford.

On the other hand, the outsourced bookkeeping services are more dependable and affordable than the full time or part time bookkeepers you hire. Outsourced bookkeeping services are at a fraction of the cost of having someone in-house who may or may not be meeting your business requirements in the first place.

Contact Affinity Outsourcing for Bookkeeping Services

As your small business shapes into a large one, Affinity Outsourcing allows you easily customize the scope of work required and tailor solutions to fit your budget. Leveraging our scalability means you get to save the time, cost and hassle of adding personnel in-house.

To know more about our bookkeeping services, please visit us at https://affinityoutsourcing.net. We free consultation and quote as well.

3 Bookkeeping Blunders to Avoid

/in /by

There are billions of small businesses across the globe, with more being born every day. Even though we consider them or address them as a “small” these flourishing companies make a huge impact. This is because, these businesses account for approximately 54% of all sales and provide approximately 55% of all jobs.

When just starting out a small business, many future entrepreneurs wear several different hats – they’re the CEO, the marketing executive, and the bookkeeper all rolled into one. All of these responsibilities are full time jobs in other companies, but the small business owner has to juggle them all, with or without the experience necessary to do so properly.

As specialists in Outsourced bookkeeping services for small to medium-sized businesses, at Affinity Outsourcing, we realize that it’s hard for future entrepreneurs to hand over one of their company’s most vital chores to a stranger. However, we also know how vital it is for bookkeeping to be handled by an experienced professional. Why? Because without our online bookkeeping services it’s very easy to make mistakes.

Keep reading to discover some of the most common bookkeeping mistakes small business owners make, and why our bookkeeping services for small business can help you avoid them.

1. Not Having A Bookkeeping System: It is obvious that the futuristic entrepreneurs have big dreams. They are planning to launch a product or an idea in the market that can change the lives of their end-users or the targeted audiences. In the eagerness to achieve their business objectives that they forget about how important the daily chores like bookkeeping actually are. Running behind the business goals, they forget or ignore to keep the track of sales and expenses in a spreadsheet. Hence, with the time, it gets too complicated. To avoid any hassles at the end of the financial year, it is advisable to go for outsourced bookkeeping services that can save your time and efforts.

2. DIY Bookkeeping Without Proper Training: Executing any task without any proper training or guidelines can lead to fatal consequences; and same thing applies to Bookkeeping. There are bookkeeping and accounting software but playing with them without proper understanding; you’re likely to find yourself lost and confused after a few clicks. Online bookkeeping services provided by companies like Affinity Outsourcing can make your life easier.

3. Improperly Categorized Expenses: Let’s consider that you are doing pretty well with your spreadsheets. You are keeping an eye on every financial transactions, but the only problem is you are you’re a little unclear when it comes to categorizing expenses. Deducting expenses is a boon for small businesses when it comes time to file taxes, but unless you’ve categorized them in the same way as the IRS, you’re going to be in a bookkeeping pickle.

Hope you do not repeat these bookkeeping blunders, and keep your finances up-to-date. If you need any help or tips to manage your bookkeeping services, then feel free to contact Affinity Outsourcing Services at https://affinityoutsourcing.net. We are one of the leading providers of outsourced bookkeeping services to small businesses. Request a quote or schedule a free demonstration of our online bookkeeping services today!

Top Tips to Effectively Manage Bookkeeping Tasks

/in /by

Managing books is not an easy going business to most small business owners. However, it is one of the most important task that can make or break your business in the long run. If you are a small business with lots of books to manage but don’t have a robust system in place for tracing your day to day financials, then this blog has some useful tips for you so that you can effectively manage your books in the coming years.

#Tip 1: Select a Bookkeeping Method: There are 2 bookkeeping methods – the single and the double-entry methods. However, the former ideal for a business that has a very simple structure and a low volume of activity.

Most businesses use single-entry method to maintain the records of the financial transactions in a simple spreadsheet, with a single entry for each transaction. However, it is necessary to note that this method does allow you to anticipate your cash flow needs as it does not track accounts like inventory, accounts payable or accounts receivable.

If you wish to benefit from these insights then you need to use double-entry bookkeeping. With this methodology, every transaction affects two accounts — in other words, for every debit in one account, there must be an equal credit in another.

#Tip 2: Properly Categorize Transactions: Maintaining business transactions in a proper account is one of the most fundamental principles for small businesses that use the double-entry method.

There are five account types; hence, classify your accounts accordingly;

  1. Assets
  2. Liabilities
  3. Equity
  4. Revenue
  5. Expense

To avoid any missteps, we strongly suggest you in investing in accounting software like QuickBooks which will help you to select the right accounts based on your industry and transaction type.

#Tip 3: Track Accounts Receivable: More than likely, your business does not always collect payment the very instant you deliver a product or service to a customer. And without a strong accounts receivable system, you may run into cash flow problems very quickly. The accounts receivables management process must include:

  • An efficient invoicing platform that allows you to bill customers quickly; and
  • A robust collections system to follow up with late paying clients.

Working with an online bookkeeper will help you to streamline the steps involved in billing your clients. For example, Outsourced Quality Bookkeeping can customize and send out invoices on your behalf in a timely manner. Furthermore, we can send collection notices to delinquent customers so you don’t have to spend precious time chasing payments each month.

#Tip 4: Reconcile Your Accounts: Whether you use a bookkeeping program like Quickbooks, an Excel spreadsheet or just a good old fashioned ledger book, the ultimate goal of bookkeeping is to reconcile a trial balance, which means the final total of debits and credits must match.

This can be a tedious process since it involves comparing your record of transactions to your bank statement and being able to explain any discrepancies but it is essential if you want to have an accurate view of your cash flow position and know exactly where your business stands each week or month. In addition, it also provides an important starting point for you to forecast cash flow and plan for future expenses. Finally, bank reconciliation also helps you to detect fraud, prevent overdrafts and identify any banking errors.

Time to Consider Outsourced Bookkeeping Services: For some business owners, keeping up with the steps described above might sound like a fun challenge; but for most, it sounds like a nightmare. If you fall into the latter category, the good news is that you can consider Outsourced Bookkeeping Services at Affinity Outsourcing. We can take these small business bookkeeping tasks off your plate so you can focus on forging a lasting competitive advantage in your industry.

Contact us today https://affinityoutsourcing.net to see how we can help you save time and money with our small business bookkeeping solutions.