82% of accountants say that bookkeeping services are in higher demand than they were 5 years ago. That’s not surprising considering how vital bookkeeping is to keep small businesses afloat. But, even pinning down a definition for the term can prove difficult, especially for new business owners.
Bookkeeping is an umbrella term for a variety of different financial services. Some services specialize in payroll and tax preparation. Others offer general finance services to help keep track of your financial data.
It’s important to know what you need from your bookkeeper before choosing one to work with. Here are some of the most common types of bookkeeping services for small businesses.
What are Bookkeeping Services?
Many companies try to mount the monumental task of balancing their books in-house. But, with bookkeeping services, they don’t have to. Bookkeeping services are third-party providers who tackle business finances for you.
You can find these specialists online, in person, or in the form of software as a service. There are also different facets of financial care these services provide. Overall, with the many types of services available, it’s easier than ever to find a bookkeeper that suits your exact needs!
How Much do Bookkeeping Services Cost?
The price for bookkeeping services varies from business to business. Often, the extent of your needs and the expertise of your provider determine the final price.
But, in general, bookkeeping services cost between $1,000 and $5,000 per year. Depending on the service, you may make monthly, quarterly, or even annual payments.
Why Should I Use a Bookkeeping Service?
Hiring a bookkeeper to handle your small business’s financial needs can have immense benefits. Here are a few reasons why your business should use bookkeeping services:
Often, small businesses cannot afford an entire financial team who specializes in accounting and can check each other’s work. Instead, the bookkeeping falls on the manager or owner.
Without the proper know-how, balancing the books, payroll, and business taxes of a small business is near impossible. Not to mention the lack of accuracy a novice bookkeeper provides. Hiring an agency helps small business owners keep accurate books without adding team members.
The time you free up by hiring a bookkeeper allows you to focus on expanding your business. Moreover, many providers have responsive agents who can answer your questions in minutes.
No more pouring over paper ledgers and invoices haphazardly filed away in the back office. Some services even allow you access to your bookkeeping data via secure online servers. So, you can check your books from anywhere at any time!
Many small business owners are hesitant to opt for a bookkeeping service because of the cost. However, dollar for dollar, bookkeeping services can save you money.
First, they cost much less than hiring a full-time accountant at an industry-standard salary plus benefits. But, they save money even if you planned to balance your books by yourself. Time your spend working on your business will generate more revenue than the hours you would spend on accounting projects.
Bookkeeping Services for Small Business
Deciding which type of bookkeeping services are right for your business begins with defining your needs. Depending on your needs assessment and bookkeeping budget, one or many of the following types of bookkeeping services may help ease your workload.
1. Virtual Bookkeeping Services
Virtual bookkeeping services, also called online bookkeeping services, are an affordable and easy way to manage your books in a digital space. One major upside to this type of service is that it negates worries about long-term contracts or set rates.
Generally, you’ll work with a single accountant who will create a customized plan based on your needs. Often, virtual bookkeeping services are scalable. So, as your business grows, so can your range of services!
Virtual bookkeeping is perfect if you have many employees or locations. It centralizes your finances so you can track all aspects of your business from one place.
2. Accounts Receivable and Accounts Payable Bookkeeping Services
This option is perfect for small business owners struggling to keep up with expenses and invoices. Accounts receivable (AR) and accounts payable (AP) bookkeepers help you balance incoming and outgoing money.
They keep track of your invoices, client payments, and expenses so you stay on top of your bills! If you’re a new business owner and you’re unsure of where to start, we recommend hiring AR/AP bookkeepers.
3. Payroll Bookkeeping Services
This option is perfect for new business owners who’ve never had employees before. Payroll bookkeepers specialize in keeping track of employee information, employment taxes, and benefits. They’re the guys who make sure your employees are paid on time every time.
With all the excitement of running a small business, the most important part is showing up for your employees. They rely on your consistency and accuracy. Payroll bookkeeping services provide that, building your employee’s faith and loyalty in your business.
7. Bank Reconciliation Services
Like AR/AP, bank reconciliation deals with balancing finances. But, instead of balancing your cash flow, bank reconciliation focuses on balancing bank statements, checkbooks, and bank accounts. The process of bank reconciliation is vital because it ensures that your books are accurately tracking cash flow.
Sometimes, your personal records and your bank statements do not match. Sometimes, it’s a discrepancy on your part while other times, the bank made a mistake. Knowing which is which takes specialized training.
Don’t lose out on money- or worse, owe the bank money- because an expert wasn’t handling your books. Use bank reconciliation services to ensure your statements are correct.
Schedule a Free Consultation with Bennett Financials Today!
If you’re a small business owner ready to search for “bookkeeping services near me,” look no further. Bennett Financials offers a wide range of quality, affordable bookkeeping services for businesses of all sizes!
Our expert accounting team offers AP/AR, payroll, bank reconciliation services, and much more. Bennett Financials exceeds expectations with our unique profit first system that provides a personalized profit plan for your business. Schedule a free consultation today to learn more about Bennett Financials’ innovative bookkeeping services.