Bookkeeping Services – Benefits to Small Businesses
There are mixed opinions that you may come across about small business bookkeeping requirements. Some people are of the opinion that when the business is in the expanding phase, there is no need to waste money on bookkeeping services since the finances are not that much. However, the reality is, Bookkeeping is a great idea for any expanding business and provides a lot of help in handling the financial side of things. If you are confused whether or not you want to acquire the services of bookkeeping for small businesses, here are some benefits that might make up your mind to acquire such services.
Never Late on Bills
Running a business is not easy and it is quite time to consume. It is quite obvious that you may miss out on little things. Paying a bill is one of those mundane tasks that may seem little tasks but it can result in major penalties. It is important to outsource or delegate this task to someone with the skills and who could take the responsibility to oversee paying all the company bills on time. With bookkeeping services, you also get the relaxation from paying the bills because it is the part of their job to pay all the company bills on time and record it in the books of accounts. You will also save a lot of money from paying penalties and maintain a clean record for your business.
Keep a Track of All the Income Sources
When the business is in its growing or expanding phase, there may be multiple income sources like a collection from debtors, interest collection from investments, discounts received and others. Being the owner of the business, there are other tasks that need more of your attention and keep you busy. It is not at all possible for you to keep a track of all the income sources and record them in the business accounts. This is where small business bookkeeping services come to the rescue. You can maintain your focus on core business operations while the service providers will take care of the rest. Using the reports that you provide and the bank statements, they will post all those entries in the correct accounts so that you don’t miss any single source of income. Moreover, it will also help you know the remaining balances of the debtors.
No businessman wants to remain in a nutshell. Everyone wants to spread their wings so that they can grow further and take the business to new heights. At the moment, there may not be many employees working for your company provided the fact that your business is small and in the growing phase. However, when your business will start growing, you will hire some employees for your company and bookkeeping services are a great option for handling all your payroll needs. They will create cheques on your behalf and even mail them to your employees. All you will have to do is to sign them and that’s it. Even if some freelancers are working with you, they will also handle their payments and allow you to keep running your business smoothly.
Reporting of Financial Condition of the Business
One of the major functions of bookkeeping services is the preparation of the financial statements. If you don’t have any knowledge of accounting, they will do everything on your behalf. From posting entries to creating Trial Balance and to the preparation of Statement of Financial Position, bookkeeping services manage it all in accordance with the International Accounting Standards (IAS) in a way that your business follows all the rules stated by your local government and the international bodies. When you can present the financial position of your business, you also get qualified for loans and are able to generate finances to help you grow your business. The financial statements include Income Statement, Statement of Financial Position, Statement of Cash Flows and others. Another benefit of knowing the financial condition of the business is that you get to track all the tax expenses of your business.
Reconciliation with the Bank
Another benefit of hiring bookkeeping services for small businesses is that all your business accounts are reconciled with the bank statement. It is a common practice that bank statements do not present the actual financial picture of the business and that is why these accounts are reconciled with the books of accounts. This whole procedure is known as bank reconciliation. The bookkeeping service provider will reconcile all the business accounts with the bank statement and help you in getting the actual financial condition of the business. They will also help you in avoiding overdraft fee and additional interest on outstanding debts since you will be able to know your available finances.
These are some of the best benefits of hiring bookkeeping services for small businesses. When the business is growing, one cannot afford a full-time accountant for all the obvious reasons. Hiring these services will allow you to save costs and operate the business in a better and professional manner.
If you are looking for a bookkeeping company in Ottawa, contact A-Accounting. Founded in 2008, A-Accounting provided bookkeeping services to small and medium-size businesses. The services include full-cycle bookkeeping, Quick-books training, payroll management, consulting and more. All their services are focused on improving the scale of the small businesses and making sure that the financial matters are handled correctly. They are a competent, knowledgeable and efficient company that takes pride in taking care of the finances on your behalf.
A-Accounting, with all the past experience and knowledge of the latest standards on accounting, is a bookkeeping company in Ottawa that you should consult for all your financial matters. If you want to know more about their services or want to get a free quote, contact them now and they will answer all your queries.