There are many misconceptions about bookkeeping services, which is why it’s important to do your research before choosing one. Before using bookkeeping services, ask around or check reviews online to see if the company you’re thinking about working with has a good reputation. Also, be sure to ask about their fee structure and what services they offer. Finally, make sure that you understand the terms of the agreement you’re signing — if there are any details you don’t understand, be sure to ask your bookkeeping service representative for clarification.
Myths about bookkeeping services
The internet is full of misleading information about bookkeepers and outsourced bookkeeping services. I’ve worked in this field long enough to hear every misconception and generalization. While many generalizations are true, almost everything you hear should be treated with skepticism. Small company owners may never be able to afford a CPA. “Outsourcing” seems to be limited to major companies, right? If you think this, you may be misinformed about small company accounting.
You can do it all
Does even the tiniest firm need a bookkeeper? Not always. If you’re a sole owner, a member of a single-member LLC, or a freelancer, you may be able to handle the finances alone at first. Additionally, most small-business owners can’t do their accounting. Besides this, you’ll need an in-house or outside bookkeeper who offers the best bookkeeping services in Mississauga Canada.
Furthermore, 70% of small company owners don’t use a full-time bookkeeper, according to a study. Hence, this number is startling, considering how important record-keeping is to a business’s success. Additionally, bookkeeping apps abound in today’s market. This technology doesn’t replace bookkeeping services. Finally, consider how much time you spend on accounting each day or week and how little you know. Imagine using that time to boost sales or expand operations.
Offshore outsourcing
When people hear “outsourcing,” they often imagine “overseas.” “Outsourcing overseas” may be a common practice for manufacturing and technology enterprises, but not necessarily.
“Outsourcing” is buying a service or outsourcing a project to a third party. An outside firm may handle a task or service instead of an employee. Outsourcing doesn’t imply work is done elsewhere. Naviance never uses overseas bookkeeping services. Your outsourced accounting business may share a building or street with you. If you preserve your financial records with Naviance, they won’t be moved overseas. You may call your outsourced bookkeeper by dialing their number—no need to bother about time zones or international call costs.
Costly bookkeeping
Accurate accounting may be costly. Not always. Only hiring an in-house workforce makes a bookkeeper too expensive. In this case, you’ll pay for the following:
- BenefitsSalary
- taxes
- Sick days
- Holiday
Small-business owners may find these expenses daunting. None of these items will matter if you engage a bookkeeper offering the best bookkeeping services in Mississauga Canada via a third party. You’ll pay for the agreed-upon services, no extras. New hires won’t be recruited, hired, or onboarded slowly. Outsourced accounting services don’t give sick or vacation pay.
Data entry
Bookkeeping isn’t just inputting numbers. Data input and comparable tasks are involved. This is only one of a bookkeeper’s tasks. Bookkeepers’ duties include:
- Reconcile accounts.
- Pay bills.
- Manage receivables.
- Report finances
- Record all financial transactions.
- Payroll
Start by preparing tax books. A bookkeeper’s duties include inputting data into a computer system. The function varies per firm. Bookkeepers offering professional bookkeeping services can avoid accounting mistakes.
Control failure
In the first place, small business owners may be uneasy about handing up department control. Additionally, using an outsourcing firm to hire a bookkeeper doesn’t mean you’ll lose control. It means another party will handle certain obligations. Besides this, you control your company’s accounting department and financial records. Put: Imagine you own a storefront. Furthermore, a cashier works the register for you. Is your storefront unmanageable? Impossible! You just delegated logistical duties. Same as outsourcing a bookkeeper. Hence, your accounting firm is not an employee on your payroll. Finally, you have control.
You only need a bookkeeper for taxes
Bookkeepers don’t do taxes. Bookkeeping isn’t a part-time or seasonal profession, despite its importance in closing the books and preparing financials for your accountant during tax season. Tax preparation requires a bookkeeper throughout the year. Imagine trying to find one erroneously reported transaction among thousands over a year. Additionally, hiring a bookkeeper offering professional bookkeeping services in March to prepare your taxes may take many days, if not weeks. Finally, a bookkeeper is useful year-round, not just during tax season.
Insufficient safety
Because financial data is sensitive, it’s typical for business owners to have second thoughts about sharing it. No data will ever be 100% safe, no matter where it’s kept. Outsourced bookkeeping uses the latest technologies. Outsourced bookkeeping services prioritize security. If you need more information, see ours.
Bottom ine
If you’re looking for a professional bookkeeping and accounting service, Lira Tax & Accounting is a perfect choice. We offer a wide range of services to help businesses, large and small, from small business owners to start-ups. Plus, our team is well-versed in all relevant tax laws and regulations so that we can provide you with accurate and timely advice. Contact us today to learn more about our services!
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