Velan Bookkeepers Manage Books Worth Over $1 Billion Velan is in the 17th Year of Business Offering Accounting & Bookkeeping Services Velan Delivers Outsourced Bookkeeping & Accounting Services to Clients Nationwide Velan Offers Accounting & Bookkeeping Services to Small, Medium to Fortune 500 Companies Velan Bookkeepers Have Expertise in Multiple Software Platforms Including QuickBooks, Xero, Sage, FreshBooks, Myob & Accounting CS Velan Offers Bookkeeping Services to Clients in Various Industries Including CPA Firms, SMEs, Retailers, Non-Profit Organizations, Real Estate & Property Management.

Bookkeeping Services

Why is Virtual Cloud Bookkeeping Best for Small Businesses?

Posted on 11/11/2022

In the realm of small-business bookkeeping, virtual cloud bookkeeping services are getting more and more popular; as a result, the practice of bookkeepers traveling to meet with customers is becoming more of an exception than the norm. In fact, it’s probable that you won’t ever really meet most of your clients.

Trusting a virtual service with your books may be challenging, and selecting the right provider can be even more challenging. In order to make the best choice possible, we’ll simplify the process easier by demonstrating how to use your virtual accounting service and outlining the qualities to look for in these services.

Data storage in the “cloud” is like taking place in a fantastic location. But ever since it began, a lot of companies have tended to favor it. A revolutionary wave of recent technological advancements that had seemed like a far-off fantasy to many has come to pass thanks to cloud computing. Many big and small businesses have started adopting virtual cloud bookkeeping to streamline their accounting and finance operations.

The corporate sector is quickly undergoing a transformation as a result of the move to cloud computing, which is a very important step. It boasts a plethora of benefits, including mobile data access, and lowers IT expenditures.

The most enjoyable development in the accounting sector in recent years, in terms of “Accounting,” is definitely the cloud. Due to this, bookkeepers and company owners may now access crucial data regardless of where they are.

50% of IT professionals believe that artificial intelligence and machine learning are playing a role in cloud computing adoption, growing to 67%.

What Are Virtual Cloud Bookkeeping Services & What Is Virtual Cloud Bookkeeping?

Virtual Cloud bookkeepers do regular financial activities including recording transactions, balancing bank and credit card accounts, and processing payroll, much like conventional on-site bookkeepers.

The main distinction is that in order to complete these activities, a typical bookkeeper must be present at your place of business. In contrast, a virtual cloud bookkeeper uses cloud-based software to manage everything remotely.

Online or remote bookkeeping are other names for virtual cloud bookkeeping.

Key advantages of virtual cloud bookkeeping include:

  • More industry-specific accounting resources, including access to professionals with highly specialized vertical experience
  • On-demand insights for key financial metrics for making stronger data-driven decisions
  • More timely monthly, quarterly, and annual reports
  • Access to an expansive team of CPAs and bookkeepers with relevant industry experience

Make sure the individual’s work is trustworthy, accurate, punctual, and thorough before engaging them to assist with managing your company’s money, just like you would with any other person or service.

You have three options for hiring a remote bookkeeper: as a full- or part-time employee, as an independent contractor or freelancer, or by using a remote bookkeeping service.

If you use a bookkeeping service, you’ll gain the advantage of working with a large team of professionals from various fields. Access to more individuals also increases the ability to provide accounting services and address last-minute bookkeeping jobs.

Duties of a virtual bookkeeper:

The duties of an internal accountant or bookkeeper are often carried out by a virtual bookkeeper. They record a company’s regular financial transactions as well as critical bookkeeping duties like:

  • Recording day-to-day transactions
  • Paying bills and invoicing clients
  • Reconciling bank and credit cards statements
  • Remitting sales tax returns

Virtual bookkeepers may provide monthly and annual financial reports and communicate with your accountant as necessary, just like their in-office equivalents.

Cloud Accounting: Choosing It for Your Business:

Business inboxes are clogged with documents. For instance, the accounting transaction needs the appropriate paperwork. The effectiveness of these jobs can be considerably improved by software. The use of cloud accounting is a great way to simplify corporate transactions. Here are a few less well-known benefits of cloud accounting for businesses:

  • Strict security and backup: Tasks are automatically backed up when using cloud accounting. It can only be viewed by people who have access to files. It’s critical to back up tasks, especially because it saves time.
  • IT costs were reduced: It is cloud-based, and it does not necessitate a significant level of IT maintenance
  • Collaboration is high: It is simple to transfer tasks. Even if it is shared with a large number of individuals, it is free.

Analyze the web visibility of your virtual bookkeeper.

A truly cloud-based company should be leveraging social media aggressively, including a virtual cloud bookkeeping service. They ought to be taking part in forums on Facebook and LinkedIn. They should also be creating material that positions them as thought leaders in addition to this.

By doing this, you may avoid relying on their assurances that they can fulfill your needs. You won’t have to just take their word for it if they are giving advice that other people find to be helpful. It’s a strong indication that your potential virtual bookkeeping service will actually benefit your company if they recognize the importance of contributing to the discourse.

What benefits do small businesses get from Virtual cloud bookkeeping?

Making the switch to cloud bookkeeping can help small businesses become more productive and save time and labor. According to accountants and business consultants, cloud accounting has a variety of advantages for small and medium-sized enterprises, which are detailed below:

  • Work from any location

The business sector has changed to reflect the epidemic, as many individuals now work from home due to covid limitations. If you’re one of the folks that want to operate from any place or are required to due to constraints, cloud bookkeeping may definitely help. Clients are able to access company accounts from anywhere with only an internet connection.

  • It’s a realistic model that’s affordable.

The affordability of virtual accounting assistants makes employing them so common in the era of technology. Since they do not need additional fees for office space and equipment, virtual assistants aid with cost savings.

You may cut expenditures on items like paid time off, incentives, and other personnel expenses by hiring virtual staff. As a result, the company may focus its attention on more important aspects of its business, such as making investments in emerging markets and making sizable profits.

Additionally, there is no need to enter into long-term contracts or obligations while working with Velan’s Virtual Assistants because you just pay them hourly.In the long term, this also saves money for aid.

  • Reliability and quality

When it comes to producing error-free reports, technology has always excelled over humans. Software for online bookkeeping generates accurate reports that are 100% true. Accounting involves numbers, thus there is a possibility for inaccuracy if accountants execute the task.

In cloud accounting, data is saved on the cloud rather than any other kind of storage medium. The benefit of data security and the assurance that there won’t be any data loss or corruption due to system failure is that it benefits small enterprises.

  • Improve Your Cash Flow

We all need to keep a close eye on business expenses; especially after the epidemic (are we there yet?). You may save time in numerous ways by using cloud-based accounting software like Xero or QuickBooks Online.

Because you are automating the invoicing process, you may take online payments more quickly, and since many accounting systems give straightforward methods to contact clients, this makes any procedure short work.

  • Spend less money

Cloud-Based Bookkeeping Services are cost-effective in the long term because they are available with monthly, quarterly, or annual subscriptions. The inexpensive cost of cloud accounting services, which benefits small businesses, is one of the most popular justifications for employing them. Because small businesses typically have a smaller or more constrained budget, they can benefit the most from accounting by transitioning to cloud bookkeeping.

  • Increased adaptability and financial savings

With the option of working with accountants outside of your immediate region, virtual bookkeeping makes it simpler to locate the best fit for your requirements and your budget. For example, hiring a bookkeeper full-time or internally may not be the most cost-effective solution in terms of:

Salary (hourly rates vary with location and expertise, but annual salaries range from $34-$77K)

Payroll Deduction costs

Overhead like benefits and IT equipment

However, since maintaining your books is a required investment, working with a virtual cloud bookkeeping company like Velan can be the best option for getting current records at a reasonable cost.

Our Bookkeeping Experts are here to help.

You only pay Velan for the bookkeeping services your company really needs. Velan’s experts can offer a larger variety of knowledge and a wider spectrum of virtual bookkeeping services as your transactions or accounting complexity grows.

  • Worldwide talent is available

We frequently are unaware of how the hiring process is constrained when employees are hired on-site. For a business to profit from utilizing global talent, a remote working model is necessary, especially if you are dealing with foreign clients.

Your business’s attractiveness on a global scale will rise when you engage a bookkeeper for your workplace. Additionally, companies with varied skills on their staff are more likely to attract clients. In this sense, Velan’s virtual cloud bookkeeping services will provide you access to the top 1% of global talent.

You might profit from switching to virtual accounting services if your business is increasing but you are unable to accommodate them in your existing physical location. You won’t need to move to a bigger workplace because of this.

  • More time for business expansion

Would you like more time to devote to what really matters? Since it’s doubtful that you began your business with the intention of becoming a bookkeeper, outsourcing virtual bookkeeping services enables you to trade in the stress and time spent on your books for more peace of mind and more time to expand your company.

Choosing a virtual bookkeeper also means spending less time on staff management and training. By understanding every detail about your company throughout the onboarding process, Velan helps you make the move to online bookkeeping.

  • Financial Reporting in Real-Time

The financial data in cloud accounting is updated and accessible in real-time. Automatic data updates eliminate the possibility of human mistakes and make information available to consumers whenever they need it.

  • Absolute Security

Data is one of a company’s most valuable assets, and protecting it is still the top concern for any organization. All of the data is sourced from and stored in the cloud when it comes to cloud bookkeeping. This only allows those with access privileges to access the classified information.

Bottom Line: Access Velan’s Incredible Resources Easily:

Since bookkeeping is not an easy task, many business owners outsource it to online bookkeeping companies. You may gain a clearer perspective of your company’s finances if you choose the correct Virtual bookkeeper who has a natural grasp of your industry.

No matter how simple your concern may be, you can always contact Velan’s professionals to receive the solutions you want.

Keeping track of your cash flow is crucial, and cloud-based accounting software allows you to do it whenever and wherever you need to, allowing you to adapt to any issue.
You may get a clearer image of your firm when you have quick access to all the data and immediately available advice. Contact us today for more information about how our cloud bookkeeping services can benefit your business.

Topics: Bookkeeping Services


How Much Does It Cost To Outsource Bookkeeping And Accounting?

Posted on 10/11/2022

What distinctions may bookkeepers make between small, medium, and big customer accounts? Let’s compare the various sizes in terms of their revenue, employee count, and other crucial criteria. The fixed monthly prices we charge for bookkeeping services and the bookkeeping activities performed for each one will then be compared to this. Our intention is to clarify for you what these breakdowns for each client look like.

How much does a bookkeeper cost for a small business?

  • The typical annual compensation for a full-time bookkeeper is currently between $35,000 and $55,000.
  • And the average cost to outsource your bookkeeping requirements is between $500 and $2,500 per month.
  • When you’re ready, full-service accounting can be added by outsourced bookkeeping services to assist you to scale if you’re expanding.
  • There are many various types of back-office outsourcing businesses available today, from project-only outsourcing to hourly rates, fixed monthly service prices, and a la carte packages to suit the specific requirements of each organization.

What is the fee for bookkeepers?

Since the outsourced bookkeeping rates are often determined by the volume or number of transactions, pricing must be tailored to meet the particular requirements of your company.

How much does a bookkeeper charge per hour?

For their services, bookkeepers typically charge between $50 and $100 per hour.

How much does outsourced bookkeeping cost?

The typical cost of outsourcing your accounting and bookkeeping can range from $500 to $5,000 per month for small businesses.

The average annual Independent Bookkeeper salary as of November 2022 is $56297. The majority of independent bookkeeper rates or salaries range between $35500 to $61500 per year.

Monthly accounting fees for small businesses:

The expense of accounting is influenced by the size, sector, and bookkeeping procedures of your company. Despite the fact that each firm is unique, there are standard small business accounting fees and expenditures. Do you pay a premium for accounting?
Statistics on small business accounting costs were gathered in 2015 by a research study for Small Businesses. Most small company owners, according to research, spend at least $1,000 annually on internal expenditures, legal fees, and accounting administration charges. The data is broken down like this:

  • 23% spend $1,000 or less
  • 31% spend $1,000 to $5,000
  • 18% spend $5,000 to $10,000
  • 12% spend $10,000 to $20,000
  • 16% spend $20,000 or more

According to the survey, monthly accounting fees for a small business typically range from $1,000 to $5,000.If you’re a startup business owner; don’t forget to budget for accounting expenses. If you’ve been an owner for a while, it could be time to reexamine accounting expenses.

How much to charge for bookkeeping services:

The major dilemma is how much to charge for bookkeeping. After all, a variety of factors can affect pricing. Additionally, you could be asking yourself a zillion questions, such as “How much should a bookkeeper charge per hour?” and “What are other bookkeepers charging for similar services?”

Take a peek at a few average rates to make understand you the witty question: How much to charge for bookkeeping services?

  • The average hourly wage for a bookkeeper in the U.S. is $22 per hour.
  • CPAs (Certified Public Accountants) typically charge $200 – $250 per hour.
  • Top bookkeepers in major cities may charge $500 per hour (or more).

What Are the Roles of Bookkeepers in Small Businesses?

The majority of small businesses bookkeeping services handle the following duties:

  • Constantly and with the utmost accuracy maintaining record books.
  • Entering data into ledgers used for bookkeeping.
  • Monitoring financial activity and producing reports on it.
  • Producing, entering, and mailing client bills.
  • Taxation and billing for payroll.
  • The balancing of various financial accounts.
  • Preparing records to support loan audits.
  • Making sure business compliance.

In addition to the following factors, we provide vital support to small firms during their incubation, establishment, and maturity phases.

How much does it cost to outsource bookkeeping and accounting?

Many small business owners outsource their bookkeeping to an accounting firm.

According to the complexity and amount of transactions, outsourced accounting costs are comparable to those charged by a contract bookkeeper, with an average monthly fee that varies from $250 to $2,000.

The majority of the above-mentioned employee-related costs can be reduced or even completely eliminated by outsourcing accounting services. By lowering these expenses, you may create the capacity and time necessary to expand your practice in addition to financial savings.

Over the years, the field of accounting has seen significant developments. The profession has advanced technologically and integrated automation into many of its procedures, making it more organized and sophisticated than ever.

But there have always been many difficulties along with positive change.

How Do Bookkeeping Service And Price Packages Usually Operate?

Any bookkeeping professional you engage with should keep accurate, current records of all the financial operations of your business using accounting software, including daily transactions, income, and spending. Each bookkeeping solution covers a somewhat different variety of services.

A bookkeeper may also handle your payroll and bank account reconciliation, create monthly financial statements, and handle day-to-day financial tasks like accounts payable and receivable.

However, the majority of conventional bookkeeping services won’t provide you with this data until several weeks following the end of the month.

Following the completion of all financial choices for the month, you will be able to view the specifics of your transactions and outlays.

The Regular Pricing Options:

Your pricing approach changes as your accounting business expand. Whichever route you use, your rates must satisfy the following standards:

  • Our services are profitable.
  • Clients recognize your value and are willing to pay your fees.
  • It’s a win-win for you and your clients since you are both happy with the pricing.

Every offer we make is carefully evaluated and taken into consideration; this evaluation is based on variables including the volume of transactions to be handled and the processing time required.

In general, Velan’s accounting team guarantees value for money for every model of bookkeeping services.

Now that the standards have been established, let’s briefly go over the three typical price alternatives.

Hourly Rate: 

  • An hourly rate connects your fees to time. This is the most common way to charge for your bookkeeping services, especially when you first start out.
  • Apply to those projects which are high priorities. The outsourced accounting pricing is defined as per the specific requirements

Monthly Rate:

  • Apply to our clients who have established or want to establish long-term relationships with us.
  • We charge a set rate for the service. You estimate the time and cost to establish your set fee. Some bookkeepers add in profit margin as a buffer for the unexpected.

Project Rate:

  • Apply to the middle to large volume data projects. We estimate how long the whole process will take and then offer a certain discount based on our hourly rate.
  • This project rate strategy seems similar to a fixed fee since it’s a set price. With this price strategy; however, you price the client rather than your time and costs. As a result, you enjoy a higher profit margin for your bookkeeping services without working any additional hours.

Which Bookkeeping option is best?

It is the responsibility of professional bookkeepers to manage your accounts on a daily basis, control data input, record financial transactions and tax data, and provide financial summaries. Basic bookkeeping duties also include managing vendors and reconciling accounts payable and receivable.

Small companies have a variety of alternatives for accounting services, and costs might change based on your requirements and preferences.

As a successful company owner, it’s critical to evaluate the financial standing of your enterprise and determine the kind of accounting service that will serve you best.

Part-time Bookkeeping:

  • Small company owners who can handle most accounting duties but need a little additional help can consider part-time bookkeeping. They receive assistance from part-time bookkeepers with receipts, employee time sheets, and any other ad hoc tasks.
  • Part-time bookkeepers often work 15 to 25 hours per week for $45 to $65 per hour.
  • For business owners who want to manage most of their financial responsibilities on a monthly basis, part-time bookkeeping is a fantastic alternative. Other bookkeeping alternatives can be better suitable if you want constant, long-term accounting assistance.

Full-time Bookkeeping:

  • A robust, prosperous company needs precise, current books. Daily accounting tasks are the responsibility of full-time bookkeepers. A full-time bookkeeper is an excellent alternative if you lack the time or money to devote to full-time accounting.
  • For full-time bookkeeping, the typical yearly service cost is from $35,000 to $55,000, with perks.
  • Unless the accountant has their own place, office space is probably also necessary. A full-time bookkeeper will offer financial stability and efficient administration for small firms that are dealing with increasing staff numbers and financial development.

Outsourced Bookkeeping:

  • For small business owners, outsourcing bookkeeping services could seem frightening or unneeded, but depending on your company’s needs, it might really make the most sense. Due to recent technological developments, outsourcing is now a practical and affordable choice.
  • Outsourcing bookkeepers often charge between $500 and $2,500 per month. This assortment of personalized accounting services might be advantageous to modern and progressive small firms.

Bookkeeping service cost: Wrapping Up:

As you can see, there are several variables that might affect how much you should charge as a bookkeeper. So, while deciding on costs for your services, take your time. To ensure your prices are fair to both you and your clients, you can:

Research overall average rates in the industry

Check out state-by-state averages

Look at different pricing strategies

Consider all of the factors that can impact price (e.g., expertise, certifications, etc.)

Consider Velan’s advice when deciding how much to charge for your bookkeeping services and pick a price that seems “just right.” You don’t want to charge too much or too little for your products.
Otherwise, you risk losing out on revenues or frightening away customers with exorbitant prices. Make sure you’re invoicing your clients fairly by doing your due diligence. However, don’t downplay your contribution and knowledge throughout the price process.

 

Need a Better Bookkeeping Solution?

Topics: Bookkeeping Services


Looking For Bookkeeping Services for Every Step of the Way?

Posted on 14/10/2022

Managing Your Bookkeeping Smartly

Growing businesses are constantly trying to expand their services, increase visibility, and manage costs. Whether small or medium firms, maintaining a record of the company’s financial affairs is extremely important. You might look for bookkeeping services in the USA and get various results: However, choosing what is best for your organization is vital these days.

This is where Bookkeeping comes into play. However, managing your data and the company’s financial transactions into organized accounts on an everyday basis can add to extra costs, waste of resources, and unnecessary hassle. The rise of online bookkeeping services for small businesses has changed the face of accounting.

Business Owners Face These Real Problems Everyday

It is time you employ international accounting support in your business today by Velan Bookkeeping Services and avail!

Save up to 50% on bookkeeping expenses Boost Sales with fewer bottom-line staff Access to Complete Financial Management Complete confidentiality and data security No requirement for an in-house accountant Focus on core tasks

Many small and medium-sized businesses, start-ups, and entrepreneurs find hiring a team of accountants challenging. More than 1/3 of small businesses outsource their accounting needs to bookkeeping services online.

Our high-quality services are reliable and flexible, giving you a cost-effective way to do routine tasks without the expensive overhead associated with hiring staff.

Bookkeeping services for small businesses have proved to reduce their expenses but, most importantly, without reducing the quality. Small and medium enterprises now focus more on their core tasks with the help of virtual bookkeeping services.

When you employ cloud bookkeeping services, you have your day-to-day tasks managed and also have complete access to data that is safe and secure. It is only possible if you choose the best online bookkeeping services for your business. It is time you grow your business with an offshore team that works as per your time zone.

Why Should You Outsource Your Bookkeeping Needs?

When you are a small enterprise owner, you want your grip on each element going on for your enterprise.

You need to outsource your requirement to the company that makes your work a priority and keeps a check on whether your company’s financial fitness is their top priority. Here are a few reasons to choose professional bookkeeping services:

  • Outsourcing requirements to certified bookkeepers lets you focus on the core activities of your business. This implies you can eliminate all the mundane accounting work and deal with bigger business challenges.
  • Outsourcing bookkeeping can save you money: Offshore bookkeepers help you save costs by getting an entire in-house accounting team leading to the saving of your budget.
  • Expert Outsourced bookkeepers for the best advice: As you avail the services of a professional, you tap into the resource where you get timely updates and a professional understanding of what is going on in the market. This helps you manage your work better.

Whether you’re seeking to develop your enterprise or reduce spending, having a dependable team operating on your behalf and imparting you with profitable plans and alternatives will assist you in achieving your goals. Outsourcing presents flexibility that in-residence bookkeepers simply can not provide. Whether you choose small business accounting services from professionals or QuickBooks bookkeeping services, you can get the best in the world. As you outsource to offshore bookkeeping services, you

Who Needs Bookkeeping Services?

You might have heard that MNCs, big businesses, and fortune 500 companies need to outsource their requirement of various sorts. However, bookkeeping and accounting services for small businesses and medium enterprises are equally important Bookkeeping Requirements Vary Across Industries

While all companies employ accountants for essential financial records, many small businesses only have very basic bookkeeping needs, and in many cases, the business owner has to do the accounting work.

Large companies, especially international companies, tend to have very complex bookkeeping and accounting processes and may employ dozens or more accountants, bookkeepers, auditors, and related professionals.

As the main requirements that are demanded by companies, bookkeepers need to do the following:

  • Financial reporting
  • Maintaining Ledger entries
  • Record payments
  • Reconciliation

These services are best offered by remote bookkeeping services companies and can benefit small to medium to gigantic companies operating all over the world.

The best-outsourced accounting services are available in every kind of industry, and this is why the call for bookkeeping has been growing in the 21st century.

List of Bookkeeping Services:

Velan offers a wide array of online bookkeeping services that can benefit your business. The services include

  • Payroll
  • Setup of accounts
  • Cleanup of books
  • Recording of all expenses and income
  • Maintaining various ledger and sub-ledger accounts
  • Fixed assets accounting
  • Reconciliations – Bank accounts, Credit cards, Vendor and Customer Statement, Inter-company, Ledger and Sub-Ledger
  • Month-end and year-end closing
  • Consolidated financial reporting
  • MIS reporting
  • Bookkeeping, treasury, and management reporting
  • Statutory accounts preparation
  • Direct and indirect tax compliance services
  • Stock options and incentives
  • Expat advisory and compliance
  • Company formation and company secretarial
  • Local director duties
  • Tax advisory
  • Tax and establishment advice
  • Transfer pricing and value chain

When you get the work done from one of the best-outsourced accounting services, you not only get the help of experts and professionals doing the best job for you but also get the required intel, growth, accuracy, and more.

Online bookkeeping ensures that you do not have to face the hassle of managing the tedious yet essential task of keeping track of your account books but focusing on the core of your business while the outsourced services help you grow in this fast-paced, competitive business environment.

Bookkeeping Services Pricing:

When it comes to the pricing of the product, bookkeeping services rates are always minimal so as to fit your company size and budget. The pricing depends upon many variables and such as the size and lifecycle, monthly transactions, number of employees and the payroll process, the expense accounts that a particular company has, the number of credit cards, invoices to send out, bills to pay, etc.

Bookkeeping pricing packages for small businesses vary as per that of a medium size firm. You can opt for the best package for yourself depending on your requirement.

 

Our Bookkeeping Experts are here to help.

Topics: Bookkeeping Services


Small Business Bookkeeping 101: Know Everything About Small Business Bookkeeping

Posted on 07/10/2022

All you need to know to stay with small business bookkeeping:

Bookkeeping is vital for every small business owner. Although keeping track of your money and company activities may seem tough, there are a few simple measures you can take to do so effectively. For some advice on the best bookkeeping services, go through these suggestions. Create a new business account, budget for taxes, organize your documents, and leave an audit trail. Is there a small business bookkeeping accounting service near me? This blog will highlight more essential bookkeeping ideas and words to be aware of.

Small-business bookkeeping might be daunting if you’ve never worked in finance before. Without some form of bookkeeping, no small firm can exist. Bookkeeping includes sorting, documenting, and categorizing all of your company’s financial transactions. Accounting services are required by any firm that interacts with money and pays taxes in order to keep correct business records.
Accounting service providers perform a variety of services on behalf of their clients, including financial accounting, management accounting, auditing, tax preparation, payroll administration, and more.

Tables of Content:

  1. What exactly is bookkeeping?
  2. The Importance of Bookkeeping for Small Businesses
  3. What differentiates bookkeeping from accounting?
  4. What are the best bookkeeping services you’re familiar with?
  5. Small business bookkeeping tips
  6. What do accounting outsourcing companies do?
  7. What is the purpose of an accounting service provider for small businesses?
  8. Why are outsourced accounting services needed for your company?
  9. Is there are small business bookkeeping accounting services near me?

What exactly is bookkeeping?

Bookkeeping is the process of documenting your company’s financial transactions. While bookkeeping is part of the entire accounting process, some of the most prevalent components of accounting are as follows:

  • Reconciliation of all financial accounts
  • Maintaining an up-to-date ledger
  • Tracking Assets and Liabilities.

Because bookkeeping is the crucial initial stage in recording all company activity, it differs from accounting. Accounting offers a complete study of these figures, whereas bookkeeping gives supervision into each individual transaction in order to detect anomalies and remedy errors. Bookkeeping data are used by accountants to monitor financial activities, company health, and expansion prospects.

The Importance of Bookkeeping for Small Businesses:

As a business owner, bookkeeping is a key phrase that you must complete. Why is it significant?

  • Information is organized through bookkeeping, which takes financial data and arranges it for simple comprehension and evaluation.
  • It aids in budgeting: You may devote resources to new releases and initiatives that will aid in the expansion of your company by being aware of the cash flow.
  • It improves decision-making: When the books are in order, you can accurately assess the state of your company. As a result, you may decide more effectively on operations and expansion.
  • You must keep track of the following data under IRS regulations: You’ll need correct data on your gross revenue, expenditures, costs, property, entertainment and travel costs, and payroll taxes when filing your taxes.
  • It aids in profit tracking, which is important because you obviously want your company to be as successful as possible. Tracking your revenue and growth is made easier with bookkeeping.

What differentiates bookkeeping from accounting?

Although many people use the terms bookkeeping and accounting interchangeably, they are not exactly the same thing. Accounting and bookkeeping go hand in hand.

 

Benefit

Bookkeeping

Accounting

Filing taxes Processes payroll taxes. Files business and personal tax returns.
Experience On-the-job training or certifications. Accounting degrees and might be a CPA.
Financial statements Maintains general ledger and accounts Creates more complex financial statements.
Business insight Day-to-day business details. Higher-level business for broader financial aspects.
Services Specific business-level solutions. Solutions for tax planning and accounting software.

Accounting and bookkeeping are frequently mistaken terminology. In reality, the whole accounting function includes a tiny but crucial component called bookkeeping. While accounting uses financial data to determine the financial situation of the company and make management choices, bookkeeping is the act of logging and reporting financial data.

What are the best bookkeeping services you’re familiar with?

Business owners may save time and money by using online bookkeeping services. Minimum requirements for your accounting service should include accurate bookkeeping and, if your company requires them, payroll and tax services. Additionally, it should have a solid reputation for being trustworthy and reliable and provide good customer service.
The following are some pretty standard characteristics to look for in the best bookkeeping services:

Here are the best bookkeeping services you must be aware of the choice of options ranging in price from $190 per month for basic bookkeeping assistance to $350 or more for more extensive options.

Small business bookkeeping tips:

You may start maintaining books for your small business by using the following advice.

  • Maintain records of all payments

Keep track of every payment in your records and note the date it was paid or received so you can quickly locate it if you need to go back to it later.

  • Select an accounting technique

Decide which approach you will employ right away because your bookkeeping will serve as the foundation for your accounting. At the time of the invoice, traditional accounting tracks income and costs. When you actually receive or pay the money, cash accounting records that date.

  • Opt for software applications

You might not require specialized bookkeeping software because you can do the task using Microsoft Excel or freeware alternatives. But when your demands grow, you might want a more specialized plan. Find out which software is recommended by your accountant.

  • Put more effort into your primary business

You may save money by doing bookkeeping-related activities yourself while a firm is just getting started. You’ll need to start keeping track of how much time you spend on bookkeeping-related activities as your firm expands.

Is it feasible for you to recoup the cost of the majority of online accounting services, which range in price from $200 to $400 per month, with the time you spend on bookkeeping-related tasks?

Even the shortcuts that busy business owners use are not taken into consideration in this. You could be missing out on tax deductions. Do you have enough time to make sure you’re following all the rules? Some aspects of bookkeeping, including payroll legislation, call for a thorough knowledge of tax regulations, and making unintentional errors may be expensive.

  • Create a monthly report

The best approach to remain on top of your company’s finances and avoid unpleasant surprises is to generate reports at least once a month. A balance sheet and a profit-and-loss statement should be included in your monthly reports at the very least. You can now keep track of how well your company is doing in real time.

What do accounting outsourcing companies do?

It could make sense to perform the bookkeeping yourself if your firm is modest at first. Keep note of how much time you spend each week on the books as you advance. Calculate the dollar worth of your own time (how much revenue you provide to the company each hour, for example) and contrast it with the price of a bookkeeper. It might only take professional accounting outsourcing companies a few hours to process a month’s worth of accounting, so it won’t be long until this is a better bargain.

What is the purpose of an accounting service provider for small businesses?

Accounting service providers offer a comprehensive variety of services, including payroll, accounts receivable collection, bookkeeping, and accounting procedures. Small business owners are drawn to outsourcing because of the anticipated reductions in labor expenses and time savings, which may be used more effectively for their company’s primary business activity.

Why are outsourced accounting services needed for your company?

Any business, whether it is a little business or a larger one, needs accounting. By lowering mistakes and boosting efficiency, professional accounting services, on the other hand, may assist business owners in making better decisions and investments. In layman’s terms, small businesses need outsourced accounting services in order to keep correct financial records, offer professional tax advice, and ensure compliance with state and federal tax laws as well as other company regulations.

Is there are small business bookkeeping accounting services near me?

Velan Services deliver High-Quality and Affordable small-business bookkeeping accounting services to smaller and medium-sized Organizations. We provide the following services:

Our Bookkeeping Experts are here to help.

  • Services for bookkeeping, payment processing, and bank reconciliation
  • Fund Flow and Cash Flow Statement Preparation
  • Creating accounting procedures
  • Creation of accounting and financial manuals
  • The creation of the profit and loss account and the annual financial statements
  • Branch Accounting

Understanding the fundamentals will enable you to manage your money more effectively, whether you decide to handle your small company bookkeeping yourself or decide to hire a professional. You’ll avoid making expensive mistakes, spend less time looking for receipts, and obtain insightful knowledge about the potential of your company.

Finding the best-outsourced accounting services may initially be more important for a small business than hiring an accountant. It’s not often an either-or choice, though. In most cases, bookkeeping and payroll may be included as part of the service when you outsource your accounting function.

A thorough finance department may provide you peace of mind, save you time, and allow your company to expand as quickly as you’d want.

Topics: Bookkeeping Services


Bookkeeping Basics: A Bookkeeping Guide for SMEs

Posted on 16/09/2022

Tables of Content: A Bookkeeping Guide for SMEs

  • Step 1: Separate Your Business And Personal Expenses.
  • Step 2: Choose An Accounting System.
  • Step 3: Choose An Accounting Method: Cash Or Accrual.
  • Step 4: Choose The Right Tools.
  • Step 5: Make Sure Your Transactions Are Categorized.

Separate Your Business And Personal Expenses

The first step to mastering your business finances is simple: bookkeeping for small businesses starts by creating a bank account and separating your business and personal expenses.

Now how can you do that? If you run a business or LLC and there isn’t enough bifurcation between your personal and business finances, there is a chance that you could be held personally liable for any debt incurred by your business. Small business bookkeeping services can easily be outsourced to the right firm.

Mixing personal and business expenses in the same account can also lead to unnecessary stress when filing taxes or accounting. A business bookkeeping expense could be lost on your account, and you miss a major deduction. Or it could mean that your CPA spends more time paying taxes. Either way, you end up losing more money than can be anticipated.

 

Choose An Accounting System

There are two main accounting methods: single-entry accounting and double-entry accounting.

With single posting, journal entries are posted once, either as costs or as receipts. Assets and liabilities (such as inventory, equipment, and loans) are tracked separately. There are several accounting packages for small businesses that are available. Single Entry is probably for you if you’re just starting to write your books and are still in the hobby phase. It’s easy, fast, and good for basic bookkeeping.

The double entry is more complex but more robust and suitable for established businesses that have moved beyond the basic stage. You can simply hire accounting services for small businesses to offshore firms.

With double-entry bookkeeping, all transactions are recorded in a journal, and then each line item is recorded twice in the general ledger, both as a debit and as a credit. Most bookkeeping programs today are based on double-entry bookkeeping, and if you ever hire an accountant or accountant to help you with your books, double-entry bookkeeping will be used.

Choose An Accounting Method: Cash Or Accrual.

When setting up your accounting, you have to make another important decision: whether you want to do your accounting on a cash basis or an accrual basis.

In cash accounting, you only record transactions when the money has been exchanged. If you bill a customer today, those transactions won’t appear in your ledger until the money is in your bank account.

Basic bookkeeping for small businesses includes cash accounting because it’s easy to maintain, doesn’t require keeping track of credits or debts, and tells you exactly how much cash you have on hand at any given time.

Using accrual accounting, you record revenue when you bill your customers in the form of credits (even if they don’t pay you for a few months). The same goes for expenses you record when they are billed to you in the form of accounts payable in your basic accounting for small businesses.

In general, accrual accounting is better for larger, more established companies. It gives you a more realistic idea of your business’s income and expenses over a given period and provides a long-term view of business that cash accounting cannot provide. Whatever you choose to go ahead with, you can go for small business bookkeeping services near me or have an online accounting service for small businesses.

Choose The Right Tools.

Every transaction you make should be categorized as recorded in your books. It is something that the business bookkeeping services adhere to. This will help your accountant from an outsourcing accounting service for small business record more deductions and make your life easier when you have to audit.

How you categorize transactions depends on your business and industry. Your transactions generally fall into five account types: Assets, Liabilities, Equity, Income, and Expenses. Individual line items are further divided into subcategories called accounts. For example, some of your general ledger accounts in an ice cream shop might be “Revenue – Ice Cream Sales,” “Expenses – Ice Cream Ingredients,” etc. Nowadays, you have three options when it comes to accounting tools. Online bookkeeping services for small businesses can help you get sorted easily with it.

You can opt for one of the dozens of popular cloud accounting solutions, such as QuickBooks, Xero, or Wave. Also, if you choose to outsource your work to the best bookkeeping for small businesses, these tools can be powerful if you know what you are doing.

However, if you don’t have much accounting experience (or don’t have the time to learn), they can stress you more than they help you. Business bookkeeping solutions are very important to tackle. Especially if your accountant tells you that you have used them incorrectly in the last year. Using tools like our free Excel income statement template, you can do it in a spreadsheet. Hiring or outsourcing online bookkeeping for small business can help a lot.

Finally, if you want someone else to do your accounting for you, you can sign up for an accounting service that provides bookkeeping and accounting services for small businesses. When bookkeeping for small business owners is required, you can expect to prepare monthly statements, provide expense reports with actionable financial information, and even file your tax returns when the time comes. This will also determine the bookkeeping costs for small businesses.

Make Sure Your Transactions Are Categorized.

Every transaction you make should be categorized and recorded in your books. This will help your accountant from bookkeeping for a small construction business record more deductions and make the audits easier. Remember, An unmarked receipt for lunch at a restaurant six months later may not mean much to you. Was it a customer’s lunch? Have you treated your employees after a successful quarter? You can avoid all these extra searches by properly classifying and logging your trades later.
Separate Your Business And Personal Expenses:

The first step to mastering your business finances is simple: bookkeeping for small businesses starts by creating a bank account and separating your business and personal expenses.

Now how can you do that? If you run a business or LLC and there isn’t enough bifurcation between your personal and business finances, there is a chance that you could be held personally liable for any debt incurred by your business.

If you’re planning on doing small business monthly bookkeeping, it’s worth talking to a professional while setting up your system to ensure the accounts you create align with your industry standards and CPA expectations. You can always outsource your work to the best bookkeeping service for small business.

Why Should You Invest in Bookkeeping?

  • You need it to pay your taxes

You need to know your net income to pay your taxes, and to know that, you need to know your total income and expenses. And the only way to know for sure is to have accurate, up-to-date books. This can be easily achieved by basic accounting for small business owners.

  • It tells you where your money is going

Compiling your books and preparing financial statements is the only way to assess the financial health of your small business. Are sales on the rise? Are your shipping costs too high? Will you have enough money to cover your paychecks next month? Does cash flow rise or fall? The only way to know for sure is to start accounting or outsource your needs to the best online accounting services for small business.

    • Make sure you don’t miss out on tax deductions

Keeping an accurate and up-to-date series of books is the best way to keep track of tax deductions (expenses that you can deduct from your taxable income). Small businesses searching for small bookkeeping business or bookkeeping steps for small business, can find it easily on the web these days.

The more information (and supporting documents) you can provide to your CPA during the tax period, the more deductions you can legitimately claim and the larger your tax return will be. Small business bookkeeping solutions can be availed by a simple search for you to work best.

  • You need it to borrow money

If you need to borrow money from anyone other than friends and family, you need to have your books together. This allows you to prepare financial statements, often required for obtaining a business loan, a line of credit from a bank, or a start-up investment. Bookkeeping and payroll services for small business can help you keep updated books to get you what you need for your business to run best.

Before giving you money, lenders, and investors want a clear picture of your business’s financial situation. You can’t do that without looking at things like revenue, cash flow, assets, and liabilities that they’re looking for in your balance sheet, income statement, and cash flow statement. This is possible only through an updated book, which can be done by accounting and bookkeeping services for small businesses.

  • It helps you spot errors quickly

If you wait until the end of the year to reconcile or put your financial transactions in order, you won’t know if you or your bank made a mistake until you’re swamped with paperwork at tax time. Regularly organizing and updating your books can help you catch those erroneous overdraft charges today rather than six months from now when it’s too late to collect them. Outsource bookkeeping services for your small business to ensure no errors are made.

Cost of Bookkeeping Services For Small Business:

Bookkeeping packages for small businesses largely depend on the work that has to be done and the project one can outsource. Part-time online business bookkeeping is generally recommended if the business can do the main bookkeeping tasks and only needs outside help with routine work such as paper filing and managing accounts, documents, etc.

For a small business looking for a bookkeeper, hiring a full-time accountant is recommended when the business has already established a stable customer base and has been in business for at least three to five years.

This would ensure that the benefits a company derives from hiring more employees outweigh the costs it incurs in hiring. You can outsource bookkeeping for small business to ensure perfect work is done and noted transactions every time.

Your Personalized Bookkeeping services

Topics: Bookkeeping Services


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