The Truth About How Bookkeeping Services Can Help Your Business Vs. Myths
Bookkeeping is a crucial part of running any company. It allows businesses to organize, store, and analyze financial information. Using this financial service, you can accurately draw conclusions about the financial security of your business and its future.
While bookkeeping is an essential function in your business for financial as well as legal management purposes, many businesses fail to implement this integral process. Most business owners assume that hiring a bookkeeping service might be unaffordable, and outsourcing seems like it is reserved for large firms and corporations. The truth is that many small business owners have fallen victim to myths and misconceptions about bookkeeping services.
Therefore as experts in the field, we at ALL-PRO Bookkeeping & Consulting Ltd. have written down the truth and myths about having a bookkeeping service for your business so you can make the most informed choice.
Bookkeepers add a ton of value
Why? Well, for starters, if you don’t have accurate, consistent bookkeeping, then you have no idea how your business is actually doing. You can’t make informed business decisions on anything without the facts, and you don’t have the facts without bookkeeping! The bottom line is that you need to know your numbers to really gauge your business and how to move forward. Plus, think about all the hours you’ve spent or will spend trying to do the bookkeeping on your own. Getting those hours back to work ON your business is actually invaluable, so how’s that for value?
Bookkeeping is not just data entry
“I can just have a VA do this work; it’s all just data entry anyway.” Oh! This one might just be my favorite!
Are we recording financial records? Yes. Are we just constantly taking information from one place and copying it into another? HECK NO! Bookkeepers handle bank reconciliations, accounts receivable and payable, payroll, SALES TAX, payroll taxes, vendor payment tracking and tax filings, and MORE. Not to mention, bookkeepers know all about third-party payment processors, online shopping carts, and more, and they know how to use them efficiently for bookkeeping purposes; sometimes, they are literally acting as technology consultants.
Bookkeeping services are expensive
Remember Myth #1 that I busted? Remember when I said bookkeepers are really invaluable? From the IRS requirements to maintain books and file taxes to the necessity of knowing your numbers, you really can’t put a price on a bookkeeping service. But of course, yes, there is a price, but we bet it’s less than you think in most cases. For the most part, if you are a business owner watching my YouTube videos or reading this blog, you probably don’t need a full-time bookkeeper or even a part-time bookkeeper, an outsourced service will do. Most firms offer different types of bookkeeping plans that might allow you to receive once-a-month or once-a-week services. At ALL-PRO Bookkeeping & Consulting Ltd., we have both of those options, plus we have add-on services that really allow you to boost the service you are receiving. If you are bringing at least six figures in revenue a year, would you believe me if I told you that your yearly bookkeeping cost could be less than 1% of your annual revenue? It’s true; contact us to get your custom pricing!
Bookkeeping is just data entry
Although manual data entry is an important part of the job, there is so much more to it than just that. For example, bookkeepers often have to:
- Compile reports (aka easily understandable summaries) of financial activity and trends to show managers or business owners.
- Check the company’s spending records for inefficient financial activity.
- Devise financial strategies to help clients optimize cash flow.
- Contact clients or appropriate agencies regarding payment.
Bookkeepers are just low-level accountants
Accountants would actually be lost without bookkeepers. In essence, bookkeepers are responsible for producing accurate and workable raw data regarding a company’s spending. In other words, they produce reports that act as “primary sources” for a company’s financial activity.
Accountants then use the raw numbers the bookkeepers supplied to devise strategies and tips regarding the future financial goals of a business.
The two roles are sometimes mastered by an individual who then takes care of all a company’s financial needs, but make no mistake that they are different and both valuable in their own right.
The importance of bookkeeping for your business:
1. Help with accurate budgeting
2. Ensure you’re prepared for tax season
3. Ensure organized records
4. Peace of mind
Now you know why the importance of bookkeeping cannot be overlooked!
If you find yourself considering trying bookkeeping services, reach out to ALL-PRO Bookkeeping & Consulting Ltd. We are a Calgary-based bookkeeping firm founded by Valerie Mellof. Valerie is a bookkeeping professional with over twenty-five years of experience who provides services for entrepreneurs and small to medium-sized business owners in multiple fields.
We serve clients across British Columbia, Golden, Revelstoke, Kamloops, Salmon Arm, Kelowna, Penticton, Fernie, Cranbrook, Nelson, Alberta, Airdrie, Chestermere, Crossfield, Carstairs, Innisfail, Red Deer, Medicine Hat, Calgary, Strathmore, Black Diamond, Cochrane, High River, Okotoks, Turner Valley, Lethbridge, Edmonton, Grande Prairie, Brooks, Saskatchewan, Swift Current, Moose Jaw, Regina, Saskatoon, Manitoba, Brandon, and Winnipeg.
Get in touch with us today!