Bookkeeping is meant to help you manage and save money, but what do you do when your bookkeeping costs like bookkeeping services fees and other charges itself takes up a large portion of what you make? So how can you reduce your bookkeeping costs? We can help you with that; we are pretty sure you could use the money elsewhere.
- Be Organised– You will be surprised at how much being organised will help when working with bookkeepers. Bookkeepers need all your transaction information; that is all that they have to work with. If you don’t provide your bookkeeper with the payment details, receipt, date, method etc, he will have to contact you again for the information and keep things on hold till you provide them. All this means more time working on your books, ergo more bookkeeping services fees. You can save all this trouble just if you are organised and keep all your documents safe and handy.
- Use a Cloud Based Document Management System– You know you need to keep your documents safe and you need to ensure they reach your bookkeeper safe and sound. What if you could do it together? Well, you can- using cloud based document management system. Just take a picture of your receipt and upload it into a cloud based document management system of your choice. Now not only is it safe, you and your bookkeeper can assess it easily whenever required. Saves everyone involved time and money.
- Maintain Separate Business and Personal Bank Accounts– We cannot stress enough how complicated things become if you mix business with pleasure. Separating business transactions from personal transactions and tracking them is time consuming and again a waste of precious time and money as bookkeeping services fees. So keep separate bank accounts; it will make it easier for you to keep track of your expenses as well.
“Audit”- a simple 5- letter word that gives most business owners the jitters; but audits really aren’t that bad. Internal audits are a great way to evaluate and improve business processes of any organisation. Conducting an audit at the correct time is also important to ensure that it is effective. If you are wondering when you should conduct an internal audit, this article is for you.
- When Seeking Investment– Investors thoroughly review an organization before providing with investment, so an audit before meeting investors is ideal. Prepare accurate financial statements in advance; make sure they are thoroughly checked and rechecked. Don’t give your investors a chance to find an error no matter how trivial even if it is something as simple as bookkeeping services fees.
- When Key Employees Leave the Company– When key employees leave, make sure you conduct an audit at least in the areas they were involved in. This can prevent problems in future; you don’t want to be in situation where you can’t explain discrepancies and the only one who can is no more with your company. You also know that everything is in order and the transition can be completed peacefully.
- If You Come Across a Discrepancy In Your Books– Never ignore a discrepancy in your books no matter how small the amount. Money is always exact, so there is something wrong somewhere if you come across a difference. Find out what the error is and address it so that you can prevent bigger mishaps in future.
- When There Are Fluctuations In Your Cash Flow– Cash problems are not always a result of market conditions; they can also result from ignoring certain aspects of your business like accounts receivable, bookkeeping services fees or inventory management. An internal audit is a great way to identify the factors that contribute to your organization’s cash flow problems.
Aside from all this, it is important to remember that audits are best done on a regular schedule. This can help identify and address possible problems before they escalate into bigger issues.
Running a non- profit is not easy. Aside from arranging for funds needed to keep the organisation running, there are numerous other issues that are troublesome and time consuming; one such task is bookkeeping and accounting for non- profits. Non- profits have certain tax benefits, but to avail of these benefits, you need to maintain clean and accurate books. Lack of funds often means that non- profits depend on volunteers to take care of the bookkeeping, so no bookkeeping services fees; definitely not a good thing. Here is why this doesn’t often work out for non- profits.
- Proper Handling of Tax Related Documentation– Regulatory reporting and filing is required to maintain the 401(c) status in non- profit bookkeeping. Non-profits are also required to keep thorough records and detailed reports, annual and otherwise, to satisfy their donors and patrons. These conditions are difficult to meet if you are working with volunteer bookkeepers as they may not have the time, and sometimes, expertise to handle the responsibilities.
- Save Money– Time is money. Save time, save money. An experienced bookkeeper, irrespective of the bookkeeping services fees, can take care of your bookkeeping in a fraction of the time that your volunteer can. You can also relax in the knowledge that your books are being handled with care by professionals. Another reason is that non- profit bookkeeping and accounting when done efficiently can save your organisation money by finding and rectifying financial leaks in your system. You will also get weekly, monthly and annual reports that can help you manage your non- profit’s finances better.
- Minimize Bookkeeping Fraud– Fraud and embezzlement are among the biggest problems faced in non- profit bookkeeping; such activities in a non-profit can cost the organization its reputation and goodwill. Outsourcing to professional bookkeeping and accounting services is a good way to prevent this issue. The multiple layers of security measures and safety nets in place in professional bookkeeping firms ensure that your data is safe and your funds are not misappropriated.
While bookkeeping services fees are a matter of concern for most non- profits, the benefits of using professional services largely outweigh the cons; and the bookkeeping services fees are really not as much as you fear.