Six Ways Outsourced Bookkeeping Can Save Your Small Business $$

Six Ways Outsourced Bookkeeping Can Save Your Small Business $$

80% of business owners, who use outsourced bookkeeping, say they can spend more time on their businesses. Now, you no longer need to worry about doing your bookkeeping. You can have outsource bookkeeper do the job for you.

With bookkeeping out of the way, you can focus on what matters most to you, your business. Below we will review some of the ways that hiring an outsourced bookkeeper can save you money.

Outsourced Bookkeeping Is Quick and Efficient
You or your employees may not know what they are doing when it comes to bookkeeping. You’ll be wasting a lot of time working on your books when you should be focusing on what you’re truly good at. That could be running your establishment or your employees doing the main tasks of their job.

When you outsource this position, it will reduce the amount of time that will be spent on bookkeeping. An SME will have the bookkeeping done quickly. They will be familiar with what needs to get done and how it needs to get done.

On top of that, you’ll avoid paying any penalty fees as your books will be done on time every time.

Moreover, this saves you money as it will give you and your employees more time to focus on your business. You won’t be hiring your employees on for longer hours. You’ll be hiring someone else to do this job for you at a cheaper rate.

No More Errors
When you hire an outsourced bookkeeper you won’t have to worry about errors in the books. If something is miscalculated you could spend a lot of time fixing a simple mistake.

Then again, maybe some items didn’t get logged, this will show discrepancies in your books. Discrepancies can lead to fines which will cost you more money down the line.

Moreover, with an outsourced bookkeeper, they will know all the standard regulations (GAAP). They will adhere to these regulations. SMEs will know what they are doing so you can breath easier.

Outsourcing Increases Productivity
When you or your employees don’t have to focus on bookkeeping, more time spent can be spent on your business. It is one less distraction from the main duties and tasks that need to be done.

When there are more tasks to be done it can feel overwhelming. You or your employees can become overworked and fatigued. This means no one will be fully engaged in the duties that matter and they may make more mistakes.

Only Pay for What You Need
If you choose to hire an outsourced bookkeeper, you won’t have to pay part-time or full-time wages. What’s more, you won’t have to worry about providing them with benefits.

On top of that, there are a plethora of payment options that you can choose from. For example, you can pay a fixed rate or an hourly fee.

When you use an outsourced vs an in-house bookkeeper you can choose how often you use the service. You don’t need to keep someone on staff at all times.

Fewer Expenses
With an outsourced bookkeeper, you don’t need more office space or computer equipment. You don’t need to buy any of the accounting software that would be required to do the expenses.

Many firms even use cloud-based accounting software. This allows you to easily view your financial information.

Customize the Services You Receive
There are different services you can choose from when you outsource your bookkeeping. You only pay for the services you want and nothing more.

For example, you can hire someone to work on your income statements and balance sheets. At the same time, if you don’t want them to work on your cash flow management, you can opt-out of that service.

Is Outsourcing Right for You?
If any of these benefits appeal to you, outsourcing may be right for you. Outsourced bookkeepers will keep your business financially secure and help it thrive. With Alvarez Tax Inc. at your side, you will have better peace of mind.

Reach out to us today if you have any further questions on outsourced bookkeeping.

Bookkeeping Tip #3 – Don’t Wait Until Year End to Talk to Your Accountant

Bookkeeping Tip #3 – Don’t Wait Until Year End to Talk to Your Accountant

Make it a point to be in contact with your accountant regularly, not just at the end of the year. Doing so will make sure that any bookkeeping issue will be caught in time and will be easier to work out. Even though accounting software can enable practically anyone to monitor their business financials, having a good accountant as an advisor is valuable as they are able to give you sound opinions beyond setting up an accounting system. Your accountant should be able to help you with setting up your business from the start – creating an effective business structure, obtaining necessary permits and licenses (if required), setting up payroll, and even filing taxes.

Money Health? Give Your Checkbook a Checkup.

Money Health? Give Your Checkbook a Checkup.

Money problems can be avoided by monitoring a few key financial areas. The good news: you don’t have to be a wizard at financial statement analysis; you just have to be vigilant.

Here are 3  things ways to make sure that you’re in tip-top financial shape.

1. Increase your income

One of the best ways stay in fighting financial shape is to make more money. Obviously that’s easier said than done, but here are a few things you can do to keep increasing the bottom line:

  • spend your time on tasks that make you the most money
  • increase your rates
  • consider offering a new line of services
  • partner with a business in a related industry, and become an affiliate marketer of their services

Certainly there are other ways, but you’re sharp, so get creative! There are plenty of ways out there to make more money if you put your mind to it.

Whatever you do, the point is this: making more $$ will keep your pockets healthier.

2. Watch how much you spend

A significant number of business errors are the result of not knowing where the money is going. Money should be spent for things that simplify your business and make you more productive. The income statement—also called the profit and loss statement—will help you evaluate your spending habits.

Your income statement will give you the percentages of each expense category relative to revenue. By comparing this report over multiple periods, you’ll discover how your expenditures may have changed as percentages of revenue.

When business is going well, you’ll want to keep spending the same percentages of revenue for the expense categories that are variable. With fixed expenses, such as rent and telephone, what will hopefully be an increase in sales will cause the percentages of revenue for these categories to favorably decline.

3.Keep an eye on your cash on hand

Monitoring cash balances is a simple process. It just requires a regular glance at your company’s balance sheet. Bank accounts appear at the top of this report, and you should frequently compare account balances over time.

Determining whether you have enough cash on hand involves some quick math. Cash, plus the receivables you expect will become cash within a month, should exceed the near-term debts you owe—called “current liabilities” on the balance sheet. Current liabilities include credit card balances, payroll taxes, sales tax, and other upcoming amounts you expect to pay.

4. Let a professional take care of your books while you focus on your business

One of the best ways to stay healthy is to visit the doctor regularly. In the same way, the best way to keep your books healthy is to leave the number crunching to the professionals.

At Alvarez Tax & Bookkeeping Services, that’s just what we do best. No matter what your needs are. Contact us today and let us handle your books while you focus on running your business.

Reduce Your Small Business Stress with These Five Tips

Reduce Your Small Business Stress with These Five Tips

The life of a small business owner, especially in competitive markets like Orange County and Southern California, is stressful. You don’t just have to worry about keeping your boss happy and paying your bills, you are the boss and have to keep your employees motivated and pay them as well as your own expenses. Throw in plans for expansion and exceeding client expectations, and your plate is already overflowing.

Check out these 5 easy tips for reducing your stress so you can stay focused on running a successful business.

Get organized
Set aside time every day to identify your tasks. You can do this at any time but consider starting your day with this exercise. Not only will it help you focus on what needs to be done, but will help you plan your day, week, and month.

Prioritize
Most of your projects will have multiple tasks that need to be completed at different times, so identify what needs to be done urgently, what can wait until later, and what you can delegate to someone else — keep reading for more information on this critical tip. Once you prioritize your workload, you can get started and enjoy the satisfaction of checking things off your list.

Find a mentor
As a business leader, you spend a lot of time supporting and celebrating the success of your team, which is great for morale, but who’s your cheerleader? Finding a mentor who can offer you support and celebrate your successes as well as help you find your way through challenges can improve your motivation and give you positive reinforcement.

Take care of your health
It’s also critical that you take care of your physical and emotional health. For example, leave yourself time for lunch and make sure to eat nutritious meals, at least most of the time. You should also make time for 30 minutes of moderate exercise every day. It might sound like a lot, but a quick walk after dinner can help you maintain a healthy body weight and protect your cardiovascular health.

Delegate
And finally, learn to delegate. Whether it’s a task for a member of your team or outsourcing business administration responsibilities like payroll and accounting, find the person with the expertise to make your life easier.

The experts at Alvarez Tax Services, a leading business and tax firm located in Orange County Ca provide the support you need to run your business efficiently, so you can focus on what you do best. Contact Alvarez Tax Services today for the expert bookkeeping service your business needs.