profitjets logo

Why Outsource Bookkeeping for Small Businesses

Why Outsource Bookkeeping for Small Businesses
Read Time: 11 min

Small businesses must have a clear knowledge of their finances and the ability to plan for growth if they wish to advance. Hiring an internet accounting business that can satisfy the need for a reasonable budget is a fantastic choice.

An accounting firm can handle account reconciliation, payroll processing, cash flow management, monthly statement production, tax services, and general journal and bookkeeping for small businesses. To meet the developing needs of a growing organization, it can also offer extra levels of accounting services.

Outsourcing your accounting is a choice you should take into account. Accounting outsourcing offers significant advantages to numerous small firms. We discuss the advantages when hiring an accountant, the advantages and disadvantages, and pricing.

Growing a firm while managing rising costs is a difficulty that small businesses frequently encounter. A non-core task like bookkeeping, which was once thought to be performed only by large corporations, is now routinely outsourced by many small enterprises.

You are constantly under time and financial strain as a small business. While cutting costs, you must care about developing a high-quality product or service line. Controlling every aspect of a small firm may seem challenging or impossible for you. Bookkeeping is one area where you can feel like you need assistance. 

Profit Jets has been offering bookkeeping services to businesses worldwide for a long time. We assist businesses in cutting costs and enhancing their financial performance by providing small company accountants comparable to those offered locally but at a lower price.

Small Business Bookkeeping Services Offered by Profit Jets

Small Business Bookkeeping Services Offered by Profit Jets
Small Business Bookkeeping Services Offered by Profit Jets

One of the top service providers for bookkeeping for small businesses is Profit Jets. Our recommendations include:

Services for Financial Statement Preparation:

Financial statement preparation and maintenance are essential for small firms. They are required under the companies act and demonstrate the stability of the business. You can avoid this time-consuming task by outsourcing financial statement creation, giving you more time to expand your company. Profit/loss accounts, trial balances, cash flow statements, balance sheets, and financial statement analysis are all included in our financial statement preparation services.

Services for Micro Business Accounting:

Your bookkeeping for small businesses can continue to run smoothly if you hire a virtual accountant from Profit Jets without incurring the additional costs of recruiting and maintaining an accountant internally. We have experience and knowledge working with small business accounting functions. We use cutting-edge accounting programs, including Quicken, Sage, Peachtree, NetSuite, and Intuit. Your company has a choice in its software, and we’ll catch you up on that.

Services of General Bookkeeping for Small Businesses:

Most business owners launch their small enterprises out of a passion for the good or service they are offering; bookkeeping for small businesses is sometimes viewed as an inconvenience that must be endured to stay in operation. We may take on all the arduous job of maintaining your bookkeeping operations, relieving you of this burden. We are capable of handling everything from straightforward ledger management to payroll processing, tax preparation, account reconciliation, and the creation of cash flow statements.

Cleanup of Accounts:

Every small firm should keep an accurate book of accounts since it’s crucial to monitor spending and cash flow. Maintaining an error-free bookkeeping for small businesses takes skill and speed, especially during the tax and year-end financial seasons. Our account cleanup services involve adding up account items with actual outgoings and incomings, categorizing them appropriately, and eliminating any erroneous transactions.

Services for Payable Accounts:

We offer a full spectrum of accounts payable services from invoice reception, uploading, tracking, and processing through reconciliation. We take care of all this and more for you, ensuring that your books are always in order.

Services for Receivables:

Our seasoned finance and accounting specialists will thoroughly review your accounts receivable entries to ensure you get paid on time and that those whose payments are overdue receive timely reminders. We’ll increase your cash flow while assisting you in lowering operating costs.

Four justifications for outsourcing small business accounting services:

Four justifications for outsourcing small business accounting services
Four justifications for outsourcing small business accounting services

1. Employing a small business accountant on staff adds to the expense and calls for long hours and accuracy on the job regarding bookkeeping for small businesses. When you outsource corporate bookkeeping services, you have access to “virtual” accountants eager to work longer and more efficiently.

2. Services for bookkeeping for small businesses are knowledgeable about specifics like small business taxes and lean versus busy tax seasons. Since we always have expert accountants on call, you don’t need to worry about resources during this time.

3. Instead of focusing on your financial situation, you should try to expand your consumer base. An outsourcing expert acts as your company’s financial arm without the hassles involved.

4. Utilize the time difference with US to your advantage. Our staff can update your books, analyze data at night, and deliver them to you the following day.

Knowledgeable Basic Bookkeeping Terms:

Knowledgeable Basic Bookkeeping Terms:
Knowledgeable Basic Bookkeeping Terms:

Accounts Payable: 

The account used to track all of the money you owe to a third party, such as supplier firms, banks, governments, or anyone you borrowed money from, is known as accounts payable. A mortgage is a simple case since you take one out. You sign a contract promising the bank that you’ll pay them back over time in installments.

Accounts Receivable: 

Accounts Receivable, on the other hand, is the account that records all of the money that third parties owe you. Once more, it might be clients, banks, businesses, or anyone who made a transaction or took out a loan from your company.

Assets

Simply put, assets are everything you or your organization possess and use to execute its operations properly. It can include money, real estate, and equipment like tools, cars, and furnishings.

The balance sheet

A balance sheet is a thorough report that analyses your company’s financial status. In this report, you may find information on your company’s capital, liabilities, and assets. A balance sheet’s purpose is to demonstrate the assets and liabilities of your company.

Bookkeeping

You should already be aware of this. The daily recording of financial transactions is known as bookkeeping. It is beneficial to ensure that the records of certain financial transactions are accurate and current.

Capital

This is not the real profit you make from your business or self-employment; rather, it is merely the money or other assets that you, as the owner, personally hold.

Cost of the sold goods: 

Another straightforward one refers to the total amount of money spent on goods or services you want to sell to customers.

Depreciation

Depreciation is when an asset loses value over time, which might occur, for instance, due to wear and tear. Depreciation is the measurement of the declining value.

Equity

Equity is the sum of all of your financial investments in the business, as well as all of the collected profits. Your equity as a small business owner is displayed in a capital account.

Expenses:

This includes every penny you spend running your company that isn’t directly tied to selling products or services.

Ledger General: 

You use a general ledger account to record, categorize, and compile all of your transactions. The general ledger, which includes the balance sheet and the income statement, is where these accounts are organized.

Earnings Statement: 

This financial statement explains your financial behavior over a specific period. It determines your net profit or loss after calculating the income received, the costs of the things sold, and the expenses.

5 Advantages of Accounting Outsourcing Financial Savings

5 Advantages of Accounting Outsourcing Financial Savings
5 Advantages of Accounting Outsourcing Financial Savings

Monetary Savings:

The cost savings are where outsourced accounting shines. You only pay for the accounting services you utilize when you outsource your accounting. Hence, you only pay for assistance when you require it. The regular employee costs of benefits, insurance, payroll taxes, and paid time off are eliminated when accounting is outsourced. Your overall operational costs will decrease if you outsource your accounting.

Utilization Of Cutting-Edge Technology:

Accounting businesses constantly strive to be at the cutting edge of their field. Having the most recent technology is a component of being on the cutting edge. The most recent accounting technology ensures that your bookkeeping for small businesses is always current. Therefore, you know your cost better and can stay ahead of the competition.

The Best Knowledge:

You may relax knowing you can access the experts when you employ an accounting firm. An accounting company on your team guarantees that your financial reports meet compliance and regulatory requirements. An accounting firm is ideal for completing all of your accounting projects because they are experts in what they do. Employ a third-party accounting company, and you can relax knowing that your accounting will be finished fast and accurately.

Daily Checkup:

You may monitor your accounting data and records daily with the help of an outsourced accounting agency. You can access your accounting records whenever you need them, thanks to the specialized team that most accounting firms will assign to your business. You may improve business decisions and keep ahead of the competition by having daily reporting. By providing accurate and timely reports, hiring an accounting firm will aid your company’s growth.

Better Use Of Time:

You receive time back when you outsource the accounting that you would have otherwise spent on administrative duties. You may now use the time you spent on accounting to grow your small business. You can become distracted by monotonous duties like accounting from time to time. Employing an accounting firm enables you to concentrate on the main aspects of your company. Instead, you are wasting time wondering whether your bookkeeping for small businesses is accurate. Outsource it.

Benefits of Hiring Profit Jets to Provide Bookkeeping Services for Small Businesses

Benefits of Hiring Profit Jets to Provide Bookkeeping Services for Small Businesses
Benefits of Hiring Profit Jets to Provide Bookkeeping Services for Small Businesses

Profit Jets is a top provider of small business bookkeeping services, and working with us has several advantages for our clients. These consist of:

Options for Affordable Pricing: 

Without sacrificing accuracy or service quality, we offer small business accounting services that are incredibly reasonable.

Data Protection:

At Profit Jets, we take data security very seriously. We’ll treat your financial information with the highest security.

Superior Services:

Since we are ISO-certified, we offer exceptional value for money and apply the most recent bookkeeping for small businesses best practices.

Outstanding Infrastructure:

As a top supplier of small business bookkeeping services in the US and worldwide, we have the necessary resources and infrastructure to deliver outstanding solutions in bookkeeping for small business.

Technologies and Tools:

Our company offers cutting-edge services by utilizing the greatest and most recent business bookkeeping software.

Team with Experience:

With 23 years of combined experience, our bookkeeping for small businesses team offers a wide range of financial and accounting services to clients worldwide.

A rapid turnaround:

We take deadlines very seriously. Thus our specialists will always offer their finance and accounting services as quickly as possible.

Full-Service Accounting Vs. Basic Bookkeeping:

Full-Service Accounting Vs. Basic Bookkeeping
Full-Service Accounting Vs. Basic Bookkeeping

Early on, compliance—paying bills, getting paid, documenting transactions, assuring payroll accuracy, and adhering to state and federal regulations—takes priority for many small firms. When your company reaches a certain point, you’ll emphasize the need for timely, accurate financial reporting and intelligence. When making data-driven judgments, you’ll require more sophisticated bookkeeping for small businesses, accrual-based accounting, and management or managerial accounting.

Therefore, the first question you should ask yourself is whether you require compliance or basic bookkeeping for small businesses or are prepared to advance to full-service accounting, which can help you drive growth, improve cash flow, and increase profits. As you might understand, they demand significantly different amounts of work and experience, and the price for full-service accounting is substantially greater. However, most companies that take the risk see the value and realize a quick ROI.

What Can a Small Business Bookkeeper Do?

What Can a Small Business Bookkeeper Do
Small Business Bookkeeper Do

Your books need to be carefully maintained every day by bookkeepers. Typically, they enter all the data into accounting software or ledgers.

They concentrate on keeping track of a company’s financial transactions by keeping records, monitoring transactions, and producing financial reports.

  • Bill entry, coding, and payment
  • Making and Sending Invoices to Customers
  • Recouvrement of Overdue Receivables
  • Reconciling Credit Card and Bank Accounts
  • Maintaining clients for accounts receivable and vendors for payable
  • Assisting the CFO/Controller and outside CFO by putting together:
  • Analyzing accounts.
  • Work Documents for Month-End Closing and Support for Audits.
  • Document Scanning and Attachment for Tax and Audit Support.
  • Getting Client Source Documents (PBCs) Ready for Support in Audit.

Basic Bookkeeping Costs: In-House vs. Outsourced vs. Part-Time:

Basic Bookkeeping Costs: In-House vs. Outsourced vs. Part-Time
Basic Bookkeeping Costs: In-House vs. Outsourced vs. Part-Time

If your business only requires bookkeeping for small business at this time, you’ll need to choose whether to conduct it internally or outsource it. If you want to employ and supervise a bookkeeper, you must also choose whether the employment is full- or part-time. Local accounting services, local CPA firms that provide bookkeeping services, and specialized, nationwide outsourced bookkeeping organizations are some options available to you if you decide to outsource.

Bookkeeping for Small to Medium Businesses on a Part-Time Basis:

Bookkeeping for Small to Medium Businesses on a Part-Time Basis
Bookkeeping for Small to Medium Businesses on a Part-Time Basis

A part-time bookkeeper might range greatly in price. Internal, part-time pay ranges from $15 to $20 per hour, depending on the position and location. They usually need to be controlled and supervised because they only do basic tasks for bookkeeping for small businesses.

A part-time bookkeeper might be a suitable fit for your business if you can handle your work and some of the accounting each month but could use a little extra assistance. They can perform tasks including entering receipts and monitoring employee timesheets, accounts payable, and accounts receivable. Management still needs someone to check the bookkeeper’s work when hiring a part-time employee.

Businesses frequently attempt to train an office manager or other capable employee to take on the role of part-time bookkeeper. While this can work and appears to be the least expensive choice, there are dangers involved if the office manager’s or part-time employee’s productivity does not meet expectations. Additionally, monitoring can be expensive, mainly regarding the business owner’s time.

Full-time bookkeeping for small to medium-sized businesses:

Full-time bookkeeping for small to medium-sized businesses
Full-time bookkeeping for small to medium-sized businesses

Depending on where you live, the typical full-charge bookkeeper’s annual income ranges from $35,000 to $55,000, with benefits and overhead. According to Glassdoor, incomes are edging closer to $70,000 in locations with a high cost of living, such as New York or L.A. You should budget an extra 20% of your income for benefits and overhead costs like office space.

A full-time bookkeeper handles your company’s day-to-day accounting operations. Your company’s financial health is keeping your books organized and current. In this case, hiring a full-time bookkeeper can be the best course of action for you.

A full-charge bookkeeper should manage tasks including paying invoices, billing customers, handling timesheets and payroll, and compiling financial statements at the end of each month. You will still need to review the final products as the business owner to ensure correctness.

Which Kind of Bookkeeping Is Ideal for Your Business?

Bookkeeping Is Ideal for Your Business
Bookkeeping Is Ideal for Your Business

The three types of bookkeepers and what each may provide your company with differ significantly. Decide which is most effective for your company, then start addressing any current or potential issues you may be having with your books. And once you decide on the services you require for bookkeeping for small business, contact Profit Jets.

Conclusion

bookkeeping for small business
bookkeeping for small business

If you are looking for superior quality services in bookkeeping for small business, get in touch with Profit Jets today and get the most professional services in the industry. Also, get the most competitive rate in the market for highly professional work.