What to Expect from Accounting or Bookkeeping Services

What to Expect from Accounting or Bookkeeping Services

Hiring accounting or bookkeeping services for your small business might be one of the most effective investments in your company. These financial professionals can be critical to help you set up for financial success in the future.

The services that are offered by an accountant or bookkeeper depend on the size of your business, your industry, and the specific areas where you need help. Instead of cookie-cutter solutions for every company, the financial team will cater the services to match your individual needs.

As a business owner, where are you encountering problems with your financial systems? If you are having a hard time keeping up with the books, then it might be time to hire a professional team. There are also benefits to hiring a financial professional if you are encountering problems with your financial reports, you need assistance with tax filing, or you are anticipating significant business growth in the future.

What is the Difference Between a Bookkeeper and Accountant?

Generally, a bookkeeper takes responsibility for ongoing financial information for a company. The bookkeeper oversees the collection, classification, and record keeping activities that involve any outgoing or incoming transactions.

Other services offered by a bookkeeper might include report management, payroll processing, and anything else that needs to be addressed on a day-to-day basis. The bookkeeper oversees close tracking of the cash flow and expenses, ensuring that your finances are handled, so nothing gets in the way of the growth of your company.

Even though bookkeeping and accounting services might seem similar, there are some notable differences in the services that are offered. To keep it simple, you need to understand that bookkeeping services oversee the day-to-day information that moves through your company, while an accountant uses that information to verify data, process tax paperwork, and analyze the information. Accounting services are helpful for the big-picture things such as tax management and profitability going forward.

An accountant can analyze the information to generate reports, complete tax filings, look at business trends, and forecast possibilities for the future. These services are critical to ensuring that your company has the right opportunities for growth. At the same time, you can identify potential potholes in the road going forward and ensure that you have the right cash flow to make it through the slower months. Accountants look at everything that might impact the big picture, helping you make educated decisions regarding the way your company is managed.

Adding Financial Structure to Your Business

There is no question that both bookkeeping and accounting services can be beneficial to help your company grow. If you aren’t already utilizing these services, then it is time to make the commitment to hire a financial professional to assist with your efforts.

These are some of the accounting and bookkeeping services that might be implemented to help with the organization and financial structure of your company:

  • Creating a Chart of Accounts: This structure shows the different accounts that are needed for the operations of the business. As transactions move through your bank account, the details can be classified so that you have accurate details about spending trends and income opportunities. It can be time consuming to maintain these accounts on a daily basis, which is where a bookkeeper comes in to play to help with your business activities.
  • Restructure the Books: If you have loose paperwork and random notes about transactions, then it can be hard to sort through the information in your books. A financial professional can step in to rehabilitate current bookkeeping or record keeping information to help you get back on track. Even though it might be a painful process to complete the restructuring, it is worth the efforts due to the long-term benefits that are available for your company. For example, your accountant can help you make the transition from a manual tracking system to an automated software, helping to cut down on the busy work that needs to be addressed each day.
  • Account Reconciliations: Just because you are consistent with ongoing financial tracking, doesn’t mean that mistakes won’t be made along the way. Regular reconciliations are essential to make sure that all of the accounts are in agreement. For example, bank deposits can be compared with the bank statements to identify any possible discrepancies that need to be addressed. If substantial differences are identified, then the bookkeeper or accountant can find the source of the problem and potentially fix the issue. Not only will this step help to catch mistakes, but it can also be helpful to reduce the risk of fraud at the same time.
  • Report Maintenance: One of the benefits of ongoing financial services is that you can tap into the real-time reports that show the financial health of your company. These records can be compiled by the bookkeepers and analyzed by your accounting team. Most business owners don’t know what to do with the raw numbers. But, financial professionals can offer insights and suggestions to assist with the future growth of the company.
  • Payroll Process: Calculating payroll and processing the payments can be a time-intensive activity if you don’t have a good system in place. There is no reason why you need to do these calculations manually. In fact, manual calculations are discouraged because of the potential for mistakes and errors. Instead, a software program can be used along with bookkeeping services to calculate the wages that are due, benefits payments and information, deduction calculations, tax details, and more. Good payroll processing services ensure that your employees are paid on time, helping to boost company culture and employee satisfaction.
  • Accounts Receivable and Accounts Payable (AR/AP): Bills need to be paid, and it can sometimes be a trick for business owners to keep up with the expenses that are due. These Accounts Payable details need to be recorded and tracked, with a system in place to ensure that everything is paid on time. Additionally, it is important to watch the Accounts Receivable transactions so that you can follow up on payments that are due from customers. As a business owner, you don’t need to worry about this busy work. Instead, it is best to hire the right services that will be required for your financial accounts.

Do You Need to Hire a Bookkeeper or Accountant?

How do you know which financial professional is needed for your company? The simple answer is that most small businesses need both bookkeeping and accounting services. Hiring a bookkeeper without an accountant means that you miss out on the benefits of tax preparation services and the big-picture strategy that is needed. On the other hand, if you hire an accountant without a bookkeeper, then it is possible that the accountant might not have accurate information regarding the ongoing activities within your company.

So, the best solution is to make sure that you choose both bookkeeping and accounting services. This approach will give you complete access to all of the financial details that will be needed to ensure the success of your company.

Instead of hiring an independent bookkeeper and a separate accountant, you might consider combined services to ensure optimal results. Make sure that you find a team that specializes in small business financial services so that the previous experience can be used to improve your results.

Advice When Hiring Financial Professionals

Don’t take it lightly that you will be providing your financial information to a service provider. If you are going to hand over the bank information, then you need to make sure that you are working with a team that you can trust. So, do a little research to find a company that has built a solid reputation in the industry, ensuring that you receive the optimal results that are possible for your company.

Keep in mind that you aren’t limited to the services in your local area. It might seem obvious that you should hire an accountant or bookkeeper that is close to home. But, all financial information can be managed online now. So, there is no reason why you need to limit your options based on a geographical area.

Instead, it is best to look for the optimal services that are offered for small business accounting and bookkeeping services. Then, hire the most experienced team regardless of location. Not only will you have more options for the services that are offered. But, you might also be able to save a little money on the cost of these services.

Call the Experts at Easier Accounting

Are you looking for the right services that match the needs of your business? If you are ready to upgrade your financial systems, then you need to discuss your options with our experienced team at Easier Accounting. We’ve specialized our focus to ensure the best results for small businesses, start-ups, and entrepreneurs. You can rest assured to know that you are choosing a team that understands the common pitfalls that come up for small companies.

We are here to help with the full-service account and bookkeeping solutions that you need. Call us today at Easier Accounting: (888) 620-0770

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