If you’ve been in business for awhile or even read any of our other articles, you know that keeping track of cash flow is critically important for any business and it’s only possible if you have accurate financial records. But how do you find the best accounting and bookkeeping solution for your unique business?
Here, we compiled a few key options to help you navigate an approach that may be ideal for your needs.
1- DIY Bookkeeping. Of course, you can always do-it-yourself. If you are just starting up and have a couple of transactions per week, your bottom line likely isn’t in the arena of outsourcing someone else to manage a few hundred dollars here and there. If anything, you could consider an accountant (not bookkeeper) to set up the books for you for the first time. Research business accountants in your area and possibly even some online templates for initial start-up expenses and budgets. You can potentially create your own with an Excel spreadsheet. Still, we encourage you to bounce it off of an accountant who will ensure you aren’t missing any important blocks to record.
2- Online bookkeeping services. These are an ideal solution for any business owner that wants to keep track of their finances and delegate most of the work to automation and experts in the field. Data gets stored securely on the cloud, professional advise is on demand providing access to interim financial statements whenever your financial institution needs it and access to your books and entire business from anywhere. You won’t be dependent on one person. Rather, a team will have your back, you can go paperless and both taxes and accountant will be included.
3- Outsource to your local bookkeeper. You can always choose to have someone come into your office a couple of days each week to work on your books and ensure your records are up-to-date. However, the bookkeeper may not be able to provide expert advise. You may need to rely on an additional resource, your accountant, that, in turn, will also need a set of your books to provide advise. This advise will be based on the bookkeeper’s reporting, which is why transparency, accuracy and timeliness are important traits the outsources bookkeeper must possess before hire. From there, you can expect to pay more for the advise from the accountant professional.
4- An in-house bookkeeper. You may choose to staff a position solely focused on bookkeeping and records. If your business has grown to the point that there are at least 30 employees or more, you likely need to hire someone to handle more than just the bookkeeping. In addition to keeping financial records, they may also assist with payroll, HR for all the employees and handle suppliers and clients’ orders.
Before you make a decision on what kind of bookkeeper will be most beneficial for you, keep in mind: the best bookkeeping solution for your business will depend on a variety of factors. Budget, time, and how willing you are to roll up your sleeves and do the books yourself. At any given time, you should have an idea of where your books stand so that you can always make educated decisions, while also monitoring those you’ve entrusted with the lifeline of your organization’s success – financials.
Whichever bookkeeping solution you opt for, make certain that is provides precise fiscal statements, tax-ready resources and a way to store and access your business’ financial content and data securely.