Enter this article! It compiles all possible services in one convenient, easy-to-read guide. (We’re lifesavers, we know. 😉)
In this post, you’ll learn which bookkeeping services you can offload and how to partner with your perfect-fit bookkeeping pro. Read on to lighten your financial management lifting! 💪
What are bookkeeping services?
Bookkeeping is the daily data tracking that keeps your business compliant and financially sound. Bookkeepers track transactions, maintain records, and ensure you follow tax and regulatory requirements. Their attention to detail reduces costly accounting errors, saving you thousands of dollars.
Additionally, bookkeepers record the info your accountant needs to prepare your tax returns. You read that right—bookkeepers’ work is key for a successful tax season. (Learn more about the differences between bookkeepers and accountants here.)
In short, bookkeeping services reduce the time you spend on financial tasks and boost financial health. They keep your records organized, improve cash flow management, and make tax filing a breeze. 👏
Essential bookkeeping services list for businesses
Bookkeeping services center on day-to-day financial management. These include recording transactions, managing your general ledger, and fulfilling tax and regulatory requirements. By keeping your financial data organized and error-free, bookkeepers save you time and relieve your stress. This bookkeeper services list includes everything you need to help your business thrive.
Recording financial transactions 📋
The most basic bookkeeping task is categorizing income and expenses. How much cash flows into your business? Who and where is it coming from? What are you spending money on? How much and how often? Bookkeepers update your financial records on a regular basis, ensuring they’re always accurate.
Bank and credit card reconciliation 💳
Remember playing matching card games like Memory as a kid? Reconciling bank account and credit card statements is the business equivalent. Bookkeepers make sure the income and expenses on your bank statements match the ones on your credit card transactions. They catch any discrepancies as soon as they occur, enabling a fast resolution and preventing additional errors.
Managing accounts payable and receivable 💰
Everybody loves payday (cha-ching!). And everybody hates it when payday comes late (womp, womp). Your bookkeeper manages accounts payable (AP) to ensure vendor bills are paid on time, and they monitor accounts receivable (AR) to ensure your clients pay your invoices punctually. In this way, bookkeepers improve your vendor relationships and keep your business profitable.
Payroll processing 💸
When you hire employees, you need to do more than just pay them. In addition to calculating wages, you’re also responsible for crunching the numbers for deductions and taxes. Bookkeepers take this work off your plate by processing payroll. They also ensure you comply with employment laws.
Financial reporting 📊
Financial reports involve more than basic Excel spreadsheets. Bookkeepers prepare profit and loss (P&L) statements, balance sheets, and cash flow statements. These records are essential for financial planning and forecasting. They also serve as the basis for monthly and quarterly financial analyses. By enabling regular reviews, bookkeepers help with the strategic decision-making that grows your business.
Tax preparation and filing support 🗃️
Bookkeepers don’t file your taxes (that’s an accountant’s domain). But they do organize your tax documents, protecting you from panicked scrambling every April. They make sure your accountant has all the info they need to file your return accurately, leverage tax breaks, and keep the IRS happy.
Expense and budget management 🤑
Hosting your website on a particular domain. Providing employees with Microsoft Office. Housing your customer relationship management (CRM) with a specific provider. All these tools cost money and the expenses can add up quickly. Bookkeepers track all operational costs so you know exactly where your money is going and when. This ensures you can follow your financial plan, manage your budget, adjust when needed, and plan for the future.
Inventory and asset management 📈
In addition to managing daily tasks, bookkeepers can monitor your stock levels and fixed assets. They track asset depreciation and amortization to calculate their value and associated costs.
Types of bookkeeping services available
You now have a bookkeeping services list that will guide your outsourcing (yay! 🎉). But how should these services be completed? Are there historic vs. tech-savvy options, or even a happy medium between the two? Yes, yes, and yes!
Traditional bookkeeping ✍️
If your life involves an ongoing battle with screened devices, traditional bookkeeping might be the best fit for you. This is the tried-and-true method of manual record-keeping with physical ledgers. No technical difficulties here!
Note that traditional bookkeeping does have its drawbacks. You won’t be able to access your books remotely and will need to back them up manually. (For example, you may need to scan documents onto flash drives that can be uploaded to the cloud.) You won’t be tripped up by fancy software, but you will need to take extra safeguarding steps and deal with geographic limitations.
Cloud-based bookkeeping ☁️
Are you a sleek startup who’s here for all things tech-forward? Modern tools like QuickBooks, Xero, and Wave are your heaven-sent bookkeeping software options. They let you automate transaction recording, invoice processing, and financial reporting.
Furthermore, anyone with the login info (hello, virtual bookkeeping) can access these tools. This is great if you want to work with a bookkeeper outside your city. However, it does mean you need to take precautions to keep your data secure. And if you’re not tech-savvy, you may need additional training to fully utilize your software of choice.
Hybrid bookkeeping services 🤝
Perhaps you like parts of traditional bookkeeping methods and parts of cloud-based options. Luckily, you don’t have to go all-or-nothing–hybrid bookkeeping services are the happy medium for you. Hybrid services combine traditional methods with digital tools, ensuring you get the best of both worlds!
How much do bookkeeping services cost?
Bookkeeping costs depend on your business size, complexity, and frequency of service. A bookkeeper’s offerings and level of experience also influence cost.
If you’re an established business with a high volume of daily transactions, your business needs more complex and regular accounting services. Your best option is to bring in a full-time, in-house bookkeeper. Expect to pay them $40,000–$60,000 per year, plus benefits.
If you’re a small business owner or early-stage startup, your costs will be lower. You could complete most tasks yourself and have a freelance bookkeeper double-check your work. Or, you could hire a part-time bookkeeper or bookkeeping firm to provide monthly bookkeeping services. Part-time and freelance bookkeepers will run you about $20–$75 per hour, while bookkeeping firms typically charge $300–$2,000 per month. Exact ranges depend on services provided and frequency.
How to choose the right bookkeeping service for your business
When browsing bookkeeping services, it’s important to look for industry expertise and scalability. A solopreneur’s bookkeeping needs are different from a national firm’s needs. And a freelance bookkeeper may be perfect when your business is small, but they can't support you after you grow to a certain stage.
Consider a professional bookkeeper’s expertise, flexibility, and growth opportunity before hiring them. Also, map out potential shifts your business or startup may need as it scales.
Finally, check out the technology your bookkeeper uses, too. If you love QuickBooks Online, you don’t want to hire a bookkeeper who exclusively uses paper ledgers for financial statements.
Connect with an accountant for your business
You know which bookkeeping services you need, have a set budget, and understand which qualities to look for in a bookkeeper. Now you just have to decide between local vs. online services. You can work with local bookkeepers or choose online services for more flexibility. It all comes down to your preferences. Whoever you choose, rest assured that you’ll be handing off time-consuming work to a pro who’ll help you streamline financial decisions.
If you don’t know where to start your search, you have options! Start by asking peers, mentors, and industry connections for recommendations. Community forums and business groups are good sources too.
You can also use online platforms and tools that help you match with specialized accounting professionals. These tools let you search anytime, anywhere, and filter by the features you need.
Relay’s free accounting pro directory is the go-to resource for small business owners and startups. ✨ It helps you find financial support fast so you can grow your business even faster. Searchable by city and/or state, services offered, and accounting software used, Relay’s directory pulls the exact help you need in seconds.
Get perfect-fit support to grow your business by using Relay’s free directory today!
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