Bookkeeping

Bookkeeping

America, being the land of ingenuity, is inventing ways of dealing with the recession, even if Washington won’t. New technology is being created to do old jobs in new ways for less money.

Jobs are still scarce, purchasing is still down, money is still tight, and business owners are cutting costs by letting more employees go and taking up the slack themselves. Accountants and Bookkeepers are being replaced with software that is a mystery to most people. Business owners know how to make clothes, fix plumbing, and bake cakes, not how to do the books. Accounting software can provide valuable, insightful reports, but if those reports are wrong, the overall picture can be distorted. The business owner is confused, frustrated, and makes mistakes that could be costly. He’s not really sure if the books are accurate or if the bank account is in balance.

To fill the demand for inexpensive bookkeeping help, a new “middle-man” is appearing in the form of Online Bookkeepers; also known as Outsourced, Freelance and Virtual Bookkeepers. These are certified professionals who know what they’re doing and can do it for a fraction of the cost of a full-time bookkeeper making a full-time salary, plus benefits. The average cost of office space per employee is 2.7 times their base salary. The Virtual Bookkeeper works from home or from an office at a monthly rate of 1/4 to 1/3 that of the full-time bookkeeper, and without benefits. They do cost more than if the business owner does the books himself, but could save the owner a lot of money by doing things right. When owners spend valuable time doing the books, they’re not growing their business, they’re operating it. Combine the money saved by avoiding costly errors with the value of time better spent on increasing business, and the Out-sourced Bookkeeper makes a lot of sense.

Business owners taking advantage of this option should make sure the bookkeeper they select is certified by one of the two largest national associations; The AIPB (American Institute of Professional Bookkeepers) or the NACPB (National Association of Public Bookkeepers). The training and testing at both organizations is thorough and up to date. CPAs are not necessary for bookkeeping duties and can charge more for their services due to further education required for that title. Many Bookkeepers have further certifications or Degrees in Accounting and Business Administration.

Areas of bookkeeping assistance to be considered include A/P and A/R, Invoicing, Inventory, Payroll, Business and Payroll Taxes, Month-End Adjustments, Depreciation, and Reconciliations. Online Bookkeeping Services can range widely, so know what you need.

Freelance Bookkeepers operate in various ways. Some work directly with your computer software through the internet. Applications like “Go to my PC” and “Go to Meeting” make direct access and person-to-person meetings easily possible without travel. Giving a bookkeeper access to your computer might sound scary, but it’s not. Simply add the bookkeeper to your PC as a “user” and allow access to only the program(s) you choose. Some bookkeepers will set up a software system for you in their office and simply provide you with reports. Some bookkeepers will act as a liaison between you and your customers or employees in order to answer questions about billing and paychecks. Some require delivery of your data in person, by you, and some will pick up data from your office. Many accept data via fax, email, or U.S. mail. Some bookkeepers can work at night so that you have access to an updated system the next day.

If you think this option might be beneficial to your business, decide which services you want a bookkeeper to do and which duties (if any) you want to maintain yourself. Check out some web sites, make some calls, and assess the personalities of bookkeepers to determine if it will be a pleasant working relationship and one you feel you can trust. Once you’re free of the paperwork, you can concentrate on more important matters like increasing your customer base, implementing better inventory controls, training your employees, or just getting home in time for dinner.