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Michael Pignatelli, CPA
CEO, Unloop

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In the path to business success, the light that will guide your way is accounting. A well-managed cash flow is the way to grow your business and achieve the profit you are aiming for. That’s why among all other tasks you should do to make your business thrive, accounting should be at the top of your priorities. It will give you a full view of the money you are spending and earning, and you can check if your business is indeed profitable. 

accounting firms in Calgary

If you do not have a background in accounting, good news: you can always delegate the task to accounting firms in Calgary. Here are the top choices. 

Versatile Accounting & Tax

Location

Suite 302A, 301 14 St NW, Calgary, AB T2N 2A1

Services Offered

Ideally, you should register for tax the moment you open for business. However, many entrepreneurs choose to delay this step until tax season comes. 

You can save yourself from the stress: Versatile Account & Tax is an accounting firm in Calgary that can handle your corporate tax, goods and services tax, personal tax planning, filing, and compliance.

The firm’s bookkeeping services include monitoring your business or nonprofit organization’s financial status and helping you make sense of it. You can also delegate the payroll processing task to them. Aside from these, they offer audit and review engagement. 

MMT Chartered Professional Accountants 

5212–7005, Fairmount Drive SE, Calgary, AB, T2H 0K4

Location

Services Offered

Whether you are a doctor, a lawyer, a dentist, a real estate agent, or a business owner, if you are looking for a chartered account in Calgary, you’ll find the services offered by MMT Chartered Professional Accountants satisfactory to your needs. 

  • Assurance and accounting
  • Business and corporate tax filing
  • Business advisory
  • Trust and estate tax
  • Financing advisory
  • Personal tax filing

These services include everything you need if you are starting a business. The firm offers bookkeeping, financial projections, business plans, and more. It will also handle tax, which is one of the most tedious tasks to accomplish in a business, especially with ever-changing tax regulations

Shajani LLP Professional Accountants

Location

#200, 1721 10 Avenue SW, Calgary, AB, T3C 0K1

Services Offered

In running a business, analyzing, planning, and forecasting your finances are just as essential as monitoring your cash flow and staying on top of your taxes. You can get all these services from Shajani LLP Professional Accountants. A Calgary-based chartered accountant from the firm can assist you with the following:

  • Tax planning
  • Financial statements, including compilation, review, and audit
  • Consultation
  • Bookkeeping

These are the essential accounting services you need, especially when starting a business. The firm is a one-stop shop for finance monitoring, analysis, and forecasting. 

accounting firm in calgary

Jibe Accounting

Location

2032 33 Ave SW #204, Calgary, AB T2T 1Z4

Services Offered

Businesses, whether they are a startup or a big one, should always have accounting. If you have a fledgling enterprise, accounting ensures sound decision-making and the growth of your business. For larger businesses, accounting ensures stability and longevity. 

Jibe Accounting caters to both physical and online startups and small businesses. Consultants, real estate brokers, and investors, on the other hand, can access these services:

  • Corporate and personal tax
  • Tax planning and incorporation
  • Financial statements
  • Bookkeeping

Geib and Company

Location

#1020–10201 Southport Rd SW, Calgary, AB T2W 4X9

Services Offered

Family businesses tend to be informal, but that doesn’t mean you do not need to track your expenses, income, losses, and profit. Geib and Company can assist with family business accounting as well as other services.

  • Corporate accounting
  • Small business accounting
  • Professional accounting
  • Construction accounting

Under each leading service are several tasks such as bookkeeping, assurance and financial reporting, cash flow and budget management, and payroll to assist you in your current business status.

KD Professional Services

Location

102, 221 18th Street SE, Calgary, AB, T2E 6J5

Services Offered

KD Professional Accounting Services (Calgary) will help you with your accounting needs, decision-making, and strategy formulation. It covers services about business and insurance, turning money into gold, and other benefits. 

The firm is also extremely helpful for small to medium businesses.  

  • Corporate services
  • Tax planning
  • Bookkeeping
  • Audit support
  • Personal tax services
  • Incorporating registry

Other services include analysis, reports, and consultation, so you can expect the firm to check your business finances consistently. 

Unloop

Location

Calgary, Alberta, Canada/Remote Service Around Canada

Services Offered 

If you are looking for accountants who speak your language and have firsthand experience in e-commerce business management, Unloop has them. 

Unloop is a company that has established a successful accounting business and wants to replicate its success to other startups and small business owners. What sets their services apart is their experience and technical expertise.

  • Accounting and bookkeeping
  • Financial statements
  • Technological integration of reports
  • Monthly reporting

Unloop lets you try their service for free, and you can cancel anytime. 

Work with Unloop

Accounting brings many benefits, especially when done as soon as you open your business. It will keep track of your finances through the reports, and you can use the data you got for decision-making. If there are any financial challenges, you will detect them easily, if not in advance, because of forecasting. With that, you can mitigate the problem or prevent it from occurring through proper planning. 

We have listed the top Calgary accounting firms. The next step is to choose who will provide the services you need and create a partnership.

Unloop can just be the accounting firm you are looking for. Contact us at 877-421-7270 so that we can discuss our services.

Entrust Your Company Finances to the Best: Top 7 Accounting Firms in Calgary
Watch Now

In the path to business success, the light that will guide your way is accounting. A well-managed cash flow is the way to grow your business and achieve the profit you are aiming for. That’s why among all other tasks you should do to make your business thrive, accounting should be at the top of your priorities. It will give you a full view of the money you are spending and earning, and you can check if your business is indeed profitable. 

accounting firms in Calgary

If you do not have a background in accounting, good news: you can always delegate the task to accounting firms in Calgary. Here are the top choices. 

Versatile Accounting & Tax

Location

Suite 302A, 301 14 St NW, Calgary, AB T2N 2A1

Services Offered

Ideally, you should register for tax the moment you open for business. However, many entrepreneurs choose to delay this step until tax season comes. 

You can save yourself from the stress: Versatile Account & Tax is an accounting firm in Calgary that can handle your corporate tax, goods and services tax, personal tax planning, filing, and compliance.

The firm’s bookkeeping services include monitoring your business or nonprofit organization’s financial status and helping you make sense of it. You can also delegate the payroll processing task to them. Aside from these, they offer audit and review engagement. 

MMT Chartered Professional Accountants 

5212–7005, Fairmount Drive SE, Calgary, AB, T2H 0K4

Location

Services Offered

Whether you are a doctor, a lawyer, a dentist, a real estate agent, or a business owner, if you are looking for a chartered account in Calgary, you’ll find the services offered by MMT Chartered Professional Accountants satisfactory to your needs. 

  • Assurance and accounting
  • Business and corporate tax filing
  • Business advisory
  • Trust and estate tax
  • Financing advisory
  • Personal tax filing

These services include everything you need if you are starting a business. The firm offers bookkeeping, financial projections, business plans, and more. It will also handle tax, which is one of the most tedious tasks to accomplish in a business, especially with ever-changing tax regulations

Shajani LLP Professional Accountants

Location

#200, 1721 10 Avenue SW, Calgary, AB, T3C 0K1

Services Offered

In running a business, analyzing, planning, and forecasting your finances are just as essential as monitoring your cash flow and staying on top of your taxes. You can get all these services from Shajani LLP Professional Accountants. A Calgary-based chartered accountant from the firm can assist you with the following:

  • Tax planning
  • Financial statements, including compilation, review, and audit
  • Consultation
  • Bookkeeping

These are the essential accounting services you need, especially when starting a business. The firm is a one-stop shop for finance monitoring, analysis, and forecasting. 

accounting firm in calgary

Jibe Accounting

Location

2032 33 Ave SW #204, Calgary, AB T2T 1Z4

Services Offered

Businesses, whether they are a startup or a big one, should always have accounting. If you have a fledgling enterprise, accounting ensures sound decision-making and the growth of your business. For larger businesses, accounting ensures stability and longevity. 

Jibe Accounting caters to both physical and online startups and small businesses. Consultants, real estate brokers, and investors, on the other hand, can access these services:

  • Corporate and personal tax
  • Tax planning and incorporation
  • Financial statements
  • Bookkeeping

Geib and Company

Location

#1020–10201 Southport Rd SW, Calgary, AB T2W 4X9

Services Offered

Family businesses tend to be informal, but that doesn’t mean you do not need to track your expenses, income, losses, and profit. Geib and Company can assist with family business accounting as well as other services.

  • Corporate accounting
  • Small business accounting
  • Professional accounting
  • Construction accounting

Under each leading service are several tasks such as bookkeeping, assurance and financial reporting, cash flow and budget management, and payroll to assist you in your current business status.

KD Professional Services

Location

102, 221 18th Street SE, Calgary, AB, T2E 6J5

Services Offered

KD Professional Accounting Services (Calgary) will help you with your accounting needs, decision-making, and strategy formulation. It covers services about business and insurance, turning money into gold, and other benefits. 

The firm is also extremely helpful for small to medium businesses.  

  • Corporate services
  • Tax planning
  • Bookkeeping
  • Audit support
  • Personal tax services
  • Incorporating registry

Other services include analysis, reports, and consultation, so you can expect the firm to check your business finances consistently. 

Unloop

Location

Calgary, Alberta, Canada/Remote Service Around Canada

Services Offered 

If you are looking for accountants who speak your language and have firsthand experience in e-commerce business management, Unloop has them. 

Unloop is a company that has established a successful accounting business and wants to replicate its success to other startups and small business owners. What sets their services apart is their experience and technical expertise.

  • Accounting and bookkeeping
  • Financial statements
  • Technological integration of reports
  • Monthly reporting

Unloop lets you try their service for free, and you can cancel anytime. 

Work with Unloop

Accounting brings many benefits, especially when done as soon as you open your business. It will keep track of your finances through the reports, and you can use the data you got for decision-making. If there are any financial challenges, you will detect them easily, if not in advance, because of forecasting. With that, you can mitigate the problem or prevent it from occurring through proper planning. 

We have listed the top Calgary accounting firms. The next step is to choose who will provide the services you need and create a partnership.

Unloop can just be the accounting firm you are looking for. Contact us at 877-421-7270 so that we can discuss our services.

Read more

Not many people realize how important it is to have an accountant in their business until they’re faced with challenging situations that require the wisest financial decision. However, it’s never too late to comprehend how much impact an accountant can have on your company.

Small Business Accounting

Any institution that operates on a budget and hires employees needs an accountant, from massive corporations, academic institutions, and government units to startups. It may seem intimidating, but don’t worry: we’re here to help. This article will give you small business accounting advice and tips your brand should employ in this digital generation.

Importance of Small Business Accounting

Only 30% of small businesses can afford to hire an accountant to address various financial concerns. It explains why many startups are unstable: they have no expert to consult to scrutinize the distribution of financial resources. If you’ve met an accountant before, their objectives are largely grounded in the principle of avoiding costly mistakes. Every expense in the financial statement is there for a reason.

Budgeting is another area where many startups fail because they mix their business finances with personal financial needs, blurring the line between what they should be spending on and what they are spending on. Before these small businesses realize what they are doing, they have blown out their budget at the expense of their employees’ salaries.

Nobody wants unforeseen expenses, and, in the context of organizations, we all want transparency. Accountants can deliver in this regard, and they are motivated to drive a company toward its most advantageous financial position. 

Do you think that’s all there is to it? Here are some reasons why it’s important that you work hand in hand with an accountant. 

  • They always choose the best business structure. This crucial step significantly impacts how your business should pay its taxes, what paperwork needs to be filed, and what your personal liabilities are. Remember that each time you change into a different business structure, it results in tax consequences and other corporate complications.
  • They are reliable when it comes to fixing budgeting, forecasting, and cash flow management issues. Accountants are responsible for developing, projecting, and optimizing the flow of cash. At the same time, they analyze, interpret, and recommend how a business spends its money to rebalance its budget and debt. With their help, you will go down the path of business success.
  • They effectively process the company’s payroll system. Understanding how much to pay your employees is difficult if you are operating without an accountant. To effectively run your business and fairly distribute finances and potential liabilities, the accountant will compute the payroll deductions (depending on each individual’s withholdings) and present a payslip to show the salary breakdown.
  • They are in charge of tax planning assignments. Other than performing their legal duties to your business, an accountant is in charge of making tax planning strategies. There are different kinds of tax strategies, such as deferring or accelerating income, deferring or accelerating expenses, and implementing a retirement account. At the end of the day, your accountant provides you with the lowest tax liabilities, which should cut down your company’s expenses.
  • They apply their professional knowledge to other departmental concerns. You may come across accountants that perform duties beyond the ones we mentioned above. These duties include business consulting, employee benefits and HR handling, management of accounts payable or accounts receivable, and software recommendations.

With this information, you can see how reliable accountants are in addressing time-consuming and stressful tasks. They serve as advisors, and seeking their professional services is the most practical way to surpass challenges in the business world. Next, we will look at some business accounting tips used across the e-commerce industry.

business-accounting

Tips for Small Business Accounting

It is becoming an outdated practice to use spreadsheets in small business accounting when there are more efficient and more technologically advanced alternatives. 

Encoding data into a specific accounting system has never been easier with the help of AI. Before you know it, you’re making more money while reducing the amount of time it takes to generate the data.

In the e-commerce landscape, AI is powered by cloud accounting systems. They help in storing and organizing the financial data of your company. 

Does your accountant love to go paperless? If so, you have more reasons to check out the accounting tips we’ve gathered below:

  1. Take note of rules related to categorization. This tip applies to both AI- and non-AI-assisted accounting procedures. Categorization is the foundation of most cloud accounting systems. Hence, your accountant should be conscious of any small business accounting documents because some transfers are under “owner distributions” while others are for “reimbursements” and so on.
  1. Focus on the expenses of your business. As you set up the rules of each recorded transaction using your AI-based system, you need to examine the categories of these expenses. By looking at the type of spending, you can identify its category and take care of the complex transactions.
  1. Use a maximum of 20 categories. Having more than 20 categories will be difficult to keep up with as you seek small business accounting help. Your accountant should focus on up to three primary performance indicators, while the other categories can be anchored on satisfying tax obligations.

As categories are made, the naming convention should be general enough to cover most types of expenses. Keeping documents organized is also a must for accountants.

  1. Be sure to keep your bank connections live. Various bugs and integration errors can happen. These need to be fixed quickly, alongside your bank connection.

Refresh all these lines and make routine reconnections of your business’s bank connection. Should the process be unsuccessful, you need to retry before requesting technical assistance.

  1. Facilitate a verification for your general ledger. Understanding your general ledger is not an easy task on the first try. You need to conduct a review of all the transactions happening in the accounting system based on category or account.

As you compare your data against the computer’s records, you can skip the detailed review for bank and credit accounts and go right over to the income and expenses category. 

You will need a keen eye for a thorough investigation and evaluation of the transactions to detect any errors. There are AI systems that can aid accountants in this step, but nothing can replace the manual process itself.

  1. Double-check for any duplicated accounts. When using an AI system in the accounting field, it might prompt you to match a banking transaction with an invoice or bill.

It is a convenient feature that streamlines reconciliations. Just ensure that there are no duplicated accounts. Also, check the bank account register for any manual transactions and confirm if there are some things that do not match with the bank statement.

There are so many reasons to hire an accountant. Their skills drive the direction of businesses forward, so we need to appreciate them more. After all, small businesses would not expand without taking the necessary step of employing an accountant. 

Did this article teach you anything new about small business accounting? Share your insights by commenting below. We would love to hear from you!

Small Business Accounting: Your Guide to Taking the Next Step with a Professional Accountant
Watch Now

Not many people realize how important it is to have an accountant in their business until they’re faced with challenging situations that require the wisest financial decision. However, it’s never too late to comprehend how much impact an accountant can have on your company.

Small Business Accounting

Any institution that operates on a budget and hires employees needs an accountant, from massive corporations, academic institutions, and government units to startups. It may seem intimidating, but don’t worry: we’re here to help. This article will give you small business accounting advice and tips your brand should employ in this digital generation.

Importance of Small Business Accounting

Only 30% of small businesses can afford to hire an accountant to address various financial concerns. It explains why many startups are unstable: they have no expert to consult to scrutinize the distribution of financial resources. If you’ve met an accountant before, their objectives are largely grounded in the principle of avoiding costly mistakes. Every expense in the financial statement is there for a reason.

Budgeting is another area where many startups fail because they mix their business finances with personal financial needs, blurring the line between what they should be spending on and what they are spending on. Before these small businesses realize what they are doing, they have blown out their budget at the expense of their employees’ salaries.

Nobody wants unforeseen expenses, and, in the context of organizations, we all want transparency. Accountants can deliver in this regard, and they are motivated to drive a company toward its most advantageous financial position. 

Do you think that’s all there is to it? Here are some reasons why it’s important that you work hand in hand with an accountant. 

  • They always choose the best business structure. This crucial step significantly impacts how your business should pay its taxes, what paperwork needs to be filed, and what your personal liabilities are. Remember that each time you change into a different business structure, it results in tax consequences and other corporate complications.
  • They are reliable when it comes to fixing budgeting, forecasting, and cash flow management issues. Accountants are responsible for developing, projecting, and optimizing the flow of cash. At the same time, they analyze, interpret, and recommend how a business spends its money to rebalance its budget and debt. With their help, you will go down the path of business success.
  • They effectively process the company’s payroll system. Understanding how much to pay your employees is difficult if you are operating without an accountant. To effectively run your business and fairly distribute finances and potential liabilities, the accountant will compute the payroll deductions (depending on each individual’s withholdings) and present a payslip to show the salary breakdown.
  • They are in charge of tax planning assignments. Other than performing their legal duties to your business, an accountant is in charge of making tax planning strategies. There are different kinds of tax strategies, such as deferring or accelerating income, deferring or accelerating expenses, and implementing a retirement account. At the end of the day, your accountant provides you with the lowest tax liabilities, which should cut down your company’s expenses.
  • They apply their professional knowledge to other departmental concerns. You may come across accountants that perform duties beyond the ones we mentioned above. These duties include business consulting, employee benefits and HR handling, management of accounts payable or accounts receivable, and software recommendations.

With this information, you can see how reliable accountants are in addressing time-consuming and stressful tasks. They serve as advisors, and seeking their professional services is the most practical way to surpass challenges in the business world. Next, we will look at some business accounting tips used across the e-commerce industry.

business-accounting

Tips for Small Business Accounting

It is becoming an outdated practice to use spreadsheets in small business accounting when there are more efficient and more technologically advanced alternatives. 

Encoding data into a specific accounting system has never been easier with the help of AI. Before you know it, you’re making more money while reducing the amount of time it takes to generate the data.

In the e-commerce landscape, AI is powered by cloud accounting systems. They help in storing and organizing the financial data of your company. 

Does your accountant love to go paperless? If so, you have more reasons to check out the accounting tips we’ve gathered below:

  1. Take note of rules related to categorization. This tip applies to both AI- and non-AI-assisted accounting procedures. Categorization is the foundation of most cloud accounting systems. Hence, your accountant should be conscious of any small business accounting documents because some transfers are under “owner distributions” while others are for “reimbursements” and so on.
  1. Focus on the expenses of your business. As you set up the rules of each recorded transaction using your AI-based system, you need to examine the categories of these expenses. By looking at the type of spending, you can identify its category and take care of the complex transactions.
  1. Use a maximum of 20 categories. Having more than 20 categories will be difficult to keep up with as you seek small business accounting help. Your accountant should focus on up to three primary performance indicators, while the other categories can be anchored on satisfying tax obligations.

As categories are made, the naming convention should be general enough to cover most types of expenses. Keeping documents organized is also a must for accountants.

  1. Be sure to keep your bank connections live. Various bugs and integration errors can happen. These need to be fixed quickly, alongside your bank connection.

Refresh all these lines and make routine reconnections of your business’s bank connection. Should the process be unsuccessful, you need to retry before requesting technical assistance.

  1. Facilitate a verification for your general ledger. Understanding your general ledger is not an easy task on the first try. You need to conduct a review of all the transactions happening in the accounting system based on category or account.

As you compare your data against the computer’s records, you can skip the detailed review for bank and credit accounts and go right over to the income and expenses category. 

You will need a keen eye for a thorough investigation and evaluation of the transactions to detect any errors. There are AI systems that can aid accountants in this step, but nothing can replace the manual process itself.

  1. Double-check for any duplicated accounts. When using an AI system in the accounting field, it might prompt you to match a banking transaction with an invoice or bill.

It is a convenient feature that streamlines reconciliations. Just ensure that there are no duplicated accounts. Also, check the bank account register for any manual transactions and confirm if there are some things that do not match with the bank statement.

There are so many reasons to hire an accountant. Their skills drive the direction of businesses forward, so we need to appreciate them more. After all, small businesses would not expand without taking the necessary step of employing an accountant. 

Did this article teach you anything new about small business accounting? Share your insights by commenting below. We would love to hear from you!

Read more

Financial management plays an essential role in the growth of a business. You have to spend your money wisely and keep a healthy cash flow at the same time. As your company grows, financial responsibilities increase, and trying to handle everything by yourself might give you a hard time. When you’re in such a situation, you could efficiently use business bookkeeping services to handle your company finances. 

bookkeeping company business partners meeting about finances

But before going straight ahead into hiring a bookkeeping company, it will be helpful to consider a couple of significant factors in hiring the right people. Do you need a bookkeeping firm or a bookkeeping freelancer? What are your bookkeeping expectations, and what services do bookkeepers provide? How can you recognize a reliable company? These are some essential points you should ponder about.  

Let us go over the basics of bookkeeping first and make the final decision after. 

What Are Bookkeeping Services?

A bookkeeper takes charge of the overall management of a business's financial processes. They’re responsible for promoting a secure, healthy budget and uniformity in the company's financial tasks. 

Some of the jobs done by a bookkeeper include (but aren’t limited to) the following:

  • Handling regular account management
  • Tracking and processing financial transactions (deposits, payroll, payables, receivables, and more)
  • Creating an accounting data file that conforms to your business needs
  • Producing consistent financial reports every month
  • Bookkeeping and tax preparation services, such as noting changes in taxes and withholding
  • Conducting bank statement reconciliation to ensure accuracy of the account balance
  • Assisting in IRS audits/reports
  • Reviewing and issuing reports to solve critical issues and maintain bookkeeping accuracy

Bookkeeping vs. Accounting

Bookkeeping and accounting are commonly thought to be one and the same. While both matter greatly to a business, they have a significant difference you should understand. 

Bookkeepers handle administrative and transactional tasks, such as payments, receipts, and sales. Accountants, on the other hand, interpret, analyze, and report insights from the bookkeeping data.

How to Know If You Need a Bookkeeping Firm

Even though bookkeeping services are considered a business necessity, you might still wonder why your business, in particular, needs them. 

There are two main types of bookkeeping services: firm and freelance. It’s best to have justifiable reasons for choosing to hire a firm instead of a freelancer. Here are some key differences.

Freelance Bookkeeping

Freelance bookkeepers are suitable for simpler processes. Compared to bookkeeping companies, they charge lower hourly or flat rates. Note that they have more freedom with their schedule. It means they won’t be regularly available and you’ll have less control over their working hours. You also need to make sure that they’re using the same bookkeeping tools as your company. 

If you’re looking for a freelancer, it will be great to work with one who is experienced in businesses like yours. They should also be attentive to details to avoid errors and miscommunication. 

Bookkeeping Company

On the other hand, a firm has diverse bookkeeping teams to offer instead of just one person. A bookkeeping firm, unlike a freelancer, is regularly available to work with. However, you will need to pay more, usually an hourly or monthly charge. Since they have a range of bookkeepers, their expertise may vary, so it's crucial to know about their capability beforehand. 

Now that you know the differences between bookkeeping services, let's find the right people.

Characteristics of a Good Bookkeeping Company

If you're looking for a reliable company for bookkeeping services, here are factors to consider when making your hiring decision.

Day-to-Day Availability

One of the primary characteristics of bookkeeping companies that set them apart from freelancers is availability. They have multiple employees, so they’re less likely to leave you hanging.

Excellent Communication

Communication is key, and that applies to financial management too. Find a company with excellent bookkeeping support services. They should discuss the most complex matters in easily understood ways, listen to your opinions, and be proactive in following up.

Upon your first consultation, see if the company asks for vital business information that will help them provide a good service. They should respect your pace of learning and adjust accordingly to it.  

bookkeeping company software quickbooks

Updated Technological Know-How

Look for a company that uses the latest business software to best accomplish bookkeeping tasks. If data is needed to create a bookkeeping and tax services business plan, your bookkeeper should use tools that accurately process income statements, expense receipts, tax deductions, and more. The tools they use show how much the company wants to be as efficient a bookkeeper as possible.  

Industry Experience

Bookkeepers with extensive experience in your industry certainly have more to offer. When it comes to ensuring secure, healthy finances, they provide customized reports for your niche. From bookkeeping tax services reports to key performance indicators fitting your industry, hiring bookkeepers with industry expertise is a smart move. 

Bookkeeping Certifications

Certifications are not legally required for bookkeeping. However, it's still helpful to ask for these documents since they reflect their expertise level. You can ask for either an American Institute of Professional Bookkeepers (AIPB) certification or a National Association of Certified Public Bookkeepers (NACPB) certification.

Conclusion

Finding a good company for bookkeeping needn't be difficult. However, it will be helpful if you understand the essential information about bookkeeping before sealing the deal. Overall, having bookkeeping experts help with your business finances is good, so do not hesitate to look for one! 

Keep Your Finances Intact with the Right Bookkeeping Company
Watch Now

Financial management plays an essential role in the growth of a business. You have to spend your money wisely and keep a healthy cash flow at the same time. As your company grows, financial responsibilities increase, and trying to handle everything by yourself might give you a hard time. When you’re in such a situation, you could efficiently use business bookkeeping services to handle your company finances. 

bookkeeping company business partners meeting about finances

But before going straight ahead into hiring a bookkeeping company, it will be helpful to consider a couple of significant factors in hiring the right people. Do you need a bookkeeping firm or a bookkeeping freelancer? What are your bookkeeping expectations, and what services do bookkeepers provide? How can you recognize a reliable company? These are some essential points you should ponder about.  

Let us go over the basics of bookkeeping first and make the final decision after. 

What Are Bookkeeping Services?

A bookkeeper takes charge of the overall management of a business's financial processes. They’re responsible for promoting a secure, healthy budget and uniformity in the company's financial tasks. 

Some of the jobs done by a bookkeeper include (but aren’t limited to) the following:

  • Handling regular account management
  • Tracking and processing financial transactions (deposits, payroll, payables, receivables, and more)
  • Creating an accounting data file that conforms to your business needs
  • Producing consistent financial reports every month
  • Bookkeeping and tax preparation services, such as noting changes in taxes and withholding
  • Conducting bank statement reconciliation to ensure accuracy of the account balance
  • Assisting in IRS audits/reports
  • Reviewing and issuing reports to solve critical issues and maintain bookkeeping accuracy

Bookkeeping vs. Accounting

Bookkeeping and accounting are commonly thought to be one and the same. While both matter greatly to a business, they have a significant difference you should understand. 

Bookkeepers handle administrative and transactional tasks, such as payments, receipts, and sales. Accountants, on the other hand, interpret, analyze, and report insights from the bookkeeping data.

How to Know If You Need a Bookkeeping Firm

Even though bookkeeping services are considered a business necessity, you might still wonder why your business, in particular, needs them. 

There are two main types of bookkeeping services: firm and freelance. It’s best to have justifiable reasons for choosing to hire a firm instead of a freelancer. Here are some key differences.

Freelance Bookkeeping

Freelance bookkeepers are suitable for simpler processes. Compared to bookkeeping companies, they charge lower hourly or flat rates. Note that they have more freedom with their schedule. It means they won’t be regularly available and you’ll have less control over their working hours. You also need to make sure that they’re using the same bookkeeping tools as your company. 

If you’re looking for a freelancer, it will be great to work with one who is experienced in businesses like yours. They should also be attentive to details to avoid errors and miscommunication. 

Bookkeeping Company

On the other hand, a firm has diverse bookkeeping teams to offer instead of just one person. A bookkeeping firm, unlike a freelancer, is regularly available to work with. However, you will need to pay more, usually an hourly or monthly charge. Since they have a range of bookkeepers, their expertise may vary, so it's crucial to know about their capability beforehand. 

Now that you know the differences between bookkeeping services, let's find the right people.

Characteristics of a Good Bookkeeping Company

If you're looking for a reliable company for bookkeeping services, here are factors to consider when making your hiring decision.

Day-to-Day Availability

One of the primary characteristics of bookkeeping companies that set them apart from freelancers is availability. They have multiple employees, so they’re less likely to leave you hanging.

Excellent Communication

Communication is key, and that applies to financial management too. Find a company with excellent bookkeeping support services. They should discuss the most complex matters in easily understood ways, listen to your opinions, and be proactive in following up.

Upon your first consultation, see if the company asks for vital business information that will help them provide a good service. They should respect your pace of learning and adjust accordingly to it.  

bookkeeping company software quickbooks

Updated Technological Know-How

Look for a company that uses the latest business software to best accomplish bookkeeping tasks. If data is needed to create a bookkeeping and tax services business plan, your bookkeeper should use tools that accurately process income statements, expense receipts, tax deductions, and more. The tools they use show how much the company wants to be as efficient a bookkeeper as possible.  

Industry Experience

Bookkeepers with extensive experience in your industry certainly have more to offer. When it comes to ensuring secure, healthy finances, they provide customized reports for your niche. From bookkeeping tax services reports to key performance indicators fitting your industry, hiring bookkeepers with industry expertise is a smart move. 

Bookkeeping Certifications

Certifications are not legally required for bookkeeping. However, it's still helpful to ask for these documents since they reflect their expertise level. You can ask for either an American Institute of Professional Bookkeepers (AIPB) certification or a National Association of Certified Public Bookkeepers (NACPB) certification.

Conclusion

Finding a good company for bookkeeping needn't be difficult. However, it will be helpful if you understand the essential information about bookkeeping before sealing the deal. Overall, having bookkeeping experts help with your business finances is good, so do not hesitate to look for one! 

Read more

The financial aspect of a business plays a significant part in the overall issues of most companies. Whether you're a startup or a vastly growing company, adjustments in managing business costs can be a daunting task. Moreover, financial management is only a part of the many factors that keep a business running. That could be overwhelming if the same few people are dealing with all aspects. 

bookkeeping business takes part

This is where a bookkeeping business takes part. If you find it difficult to work things out financially and still have other issues to take care of, bookkeeping business services can help you. Here's a discussion on how they help you handle a business's financial concerns.

What is a Bookkeeping Business?

Bookkeepers are responsible for managing a business's financial, administrative, and transactional processes. They ensure accurate and updated records and documents of all transactions processed in and out of the organization.  

Some of these jobs include regular account management, tracking financial transactions, producing monthly reports, conducting bank statements, and other related tasks. However, unlike accounting, bookkeeping services for business focus on collecting and documenting data instead of interpreting or analyzing them. That's the critical difference between bookkeeping and accounting: a bookkeeper collects data, while an accountant provides insights based on the data. 

What are the Different Types of Bookkeeping Businesses?

There are different types of bookkeeping services with different strengths and weaknesses to fit specific business needs. Below are the most common types of services.

In-House Bookkeeping

A bookkeeper works as a regular company employee and handles all bookkeeping responsibilities. Therefore, you don't have to outsource. It would be easier to communicate necessary financial information and monitor the assignee immediately. However, this is not the best idea for a tight budget because of the cost. 

Virtual Bookkeeping

How about going for cloud-based bookkeeping? If you're a company with simple financial transactions, prefer monthly fees over hourly billing, and find it efficient to communicate via online or phone, this is perfect for you. You will be connected through bookkeeping and accounting software to access financial reports and transactions.  

Local Bookkeeping 

Local bookkeepers are outsourced individuals or teams. They are classified into two types: freelancers and bookkeeping firms.

Firm

Bookkeeping firms have teams that serve more than one company/client. They are regularly available and capable of immediate substitutes, which means you don't have to worry about staff shortages. However, they cost more than a freelance bookkeeper and are usually paid monthly instead of hourly. Nevertheless, if you're up for it, they're worth the investment since they offer a lot of assurance.

Freelancer

Freelance bookkeepers work individually. They charge lower rates than a bookkeeping firm, but that also comes with a carefree schedule. As a result, they could be unavailable when you need them, which leaves you hanging with your bookkeeping issues. But don't fret; as long as you pick a freelance bookkeeper with excellent expertise in your industry, things will do well for you. 

During your consultation, discuss all essentials to ensure you're working with someone who can be of great help. For example, ask about the bookkeeping software. See if the freelancer communicates well. Ensure that the bookkeeper is keen on details to avoid committing errors. 

Most Common Financial Issues of a Business and How Bookkeepers Deal With Them

Some business owners, especially those who run small businesses, would often try to do the bookkeeping independently. It is not entirely wrong if you have the basic skills for it, but sooner or later, other business aspects will need your attention, too. As a business owner, you are responsible for supervising overall operations, training employees, and expanding the network. 

Bookkeeping tasks take up a lot of your time, which interferes with your other important duties. Fortunately,  you can get bookkeeping and administration services to handle your financial management. Leave this task to a professional team of bookkeeping and consulting services.

bookkeeping business meeting hands only

Source  

Making a Mistake in the Data Entry

Humans make mistakes; that's a known and acceptable fact. However, your business is a different matter, and even a tiny error can cause a massive loss in your finances. You can make an error for various reasons: either you're distracted with other aspects of your business, not familiar with the bookkeeping tool, or misinterpreted the bookkeeping data. 

Bookkeeper's Solution: With the help of a bookkeeping business, you can avoid such mistakes. Bookkeepers have a proactive approach by carefully reviewing data and seeking rooms for improvement to prevent errors.  

Not Enough Bookkeeping/Accounting Knowledge

Not having enough knowledge in bookkeeping tasks is a problem, especially key information. Of course, you can start learning the basics and familiarize yourself with the terms and documents, but that takes up a lot of time. 

Bookkeeper's Solution: Bookkeeping professionals already mastered basic and advanced knowledge, so that can save up a lot of your time. They can explain complex subjects in ways that you can easily understand. Having a bookkeeper doesn't prevent you from learning; it saves you time and makes learning easier.

The Records are Inconsistent

Proper and regular documentation of a business's financial records is a must. Constantly updated books are very important because they show current numbers you need to plan your next approach. But the lack of staff or knowledge in the documents to track leads to inconsistent records. 

Bookkeeper's Solution: A team dedicated to a specific job will do so much better and make you worry less about inconsistent records. One of the bookkeeper's tasks is to regularly update books and present them to you in a monthly report (or another specific schedule you agreed on).  

The Systems Used are Outdated 

You might not realize that the bookkeeping software you're using is already out of date. Since bookkeeping is not your primary job, it's understandable that you're not updated about it. An outdated bookkeeping system can't provide you instant and accurate reports, thus you experience redundant errors.

Bookkeeper's Solution: With a bookkeeper around, you don't need extensive research on systems. Professionals know the most recent and efficient tools to use for your books and can explain and demonstrate to you how the software helps conduct efficient bookkeeping tasks. 

The Cash Flow is Inconsistent

Managing the amount of money that goes in and out of your business can be very stressful, but they are significant aspects of a business. 82% of businesses fail because of poor cash flow. Therefore, you must work on them properly and ensure they serve as accurate sources of forecasting the cash flow.  

Bookkeeper's Solution: Worry no more with a dedicated bookkeeping business. They will be the ones to track account payables, receivables, payroll, inventory, and more. In addition, they will ensure that your books are consistently organized and updated, and the strategies you build from these data can address cash flow and profitability issues.

Irregular Monitoring of the Reports 

When you complete a financial report, that doesn't mean it's the end, and you can't be bothered looking into it anymore. You have to look at reports from time to time and compare them to plan your next move. There are different financial reports, and it can be overwhelming to monitor them all at once.

Bookkeeper's Solution: Bookkeepers usually set a consistent schedule for each report so they can regularly monitor all of them. Whether it's an income statement, a cash flow statement, or a balance sheet, bookkeepers have it all prepared with accurate information for reference.

Overlooking Small Transactions

Despite their quantity, small amounts of money matter significantly to a company's overall financial management. A business owner with ample responsibilities on his hands might overlook the minor details, which is not good. Every transaction makes a difference to the cash flow, so if you're unable to track that, you will end up with inaccurate data. 

Bookkeeper's Solution: Trying to figure out where and when that particular $10 or $20 were spent? The bookkeeper records every transaction involving the cash flow, so you get quick and precise answers when you find yourself asking, "where did the money go?" 

Unable to Comply with Set Dates

Failure to comply with due dates set for payment is a ticket to doom. You have to keep track of dates to pay loan covenants, deal with customer payments, review your financial statement, and other related appointments. If you can't process them on time, there will be some serious violations for you. In addition to that, you already have so much to do. You certainly don't want more issues to come up, especially being put in hot waters with the people you work with. 

Bookkeeper's Solution: Your bookkeeping department will prevent these dreadful scenarios from happening. Bookkeepers keep a regularly updated calendar for all of their tasks—daily, weekly, monthly, annual, and specific appointments are all covered. Rest assured that they will pass on these appointments to you in advance.

Conclusion

Before things get out of hand, trying out bookkeeping consulting services is a wise choice. Think ahead of the game and find a dedicated team to ensure your financial reports are organized and accurate. If you think it's costly to hire one, you can always choose from various services and find what works best. Think of it as a good investment in the long run. Instead of waiting for errors in your digits, prepare the solution beforehand with reliable bookkeeping and business services.

Troubleshooting Common Bookkeeping Woes With a Bookkeeping Business
Watch Now

The financial aspect of a business plays a significant part in the overall issues of most companies. Whether you're a startup or a vastly growing company, adjustments in managing business costs can be a daunting task. Moreover, financial management is only a part of the many factors that keep a business running. That could be overwhelming if the same few people are dealing with all aspects. 

bookkeeping business takes part

This is where a bookkeeping business takes part. If you find it difficult to work things out financially and still have other issues to take care of, bookkeeping business services can help you. Here's a discussion on how they help you handle a business's financial concerns.

What is a Bookkeeping Business?

Bookkeepers are responsible for managing a business's financial, administrative, and transactional processes. They ensure accurate and updated records and documents of all transactions processed in and out of the organization.  

Some of these jobs include regular account management, tracking financial transactions, producing monthly reports, conducting bank statements, and other related tasks. However, unlike accounting, bookkeeping services for business focus on collecting and documenting data instead of interpreting or analyzing them. That's the critical difference between bookkeeping and accounting: a bookkeeper collects data, while an accountant provides insights based on the data. 

What are the Different Types of Bookkeeping Businesses?

There are different types of bookkeeping services with different strengths and weaknesses to fit specific business needs. Below are the most common types of services.

In-House Bookkeeping

A bookkeeper works as a regular company employee and handles all bookkeeping responsibilities. Therefore, you don't have to outsource. It would be easier to communicate necessary financial information and monitor the assignee immediately. However, this is not the best idea for a tight budget because of the cost. 

Virtual Bookkeeping

How about going for cloud-based bookkeeping? If you're a company with simple financial transactions, prefer monthly fees over hourly billing, and find it efficient to communicate via online or phone, this is perfect for you. You will be connected through bookkeeping and accounting software to access financial reports and transactions.  

Local Bookkeeping 

Local bookkeepers are outsourced individuals or teams. They are classified into two types: freelancers and bookkeeping firms.

Firm

Bookkeeping firms have teams that serve more than one company/client. They are regularly available and capable of immediate substitutes, which means you don't have to worry about staff shortages. However, they cost more than a freelance bookkeeper and are usually paid monthly instead of hourly. Nevertheless, if you're up for it, they're worth the investment since they offer a lot of assurance.

Freelancer

Freelance bookkeepers work individually. They charge lower rates than a bookkeeping firm, but that also comes with a carefree schedule. As a result, they could be unavailable when you need them, which leaves you hanging with your bookkeeping issues. But don't fret; as long as you pick a freelance bookkeeper with excellent expertise in your industry, things will do well for you. 

During your consultation, discuss all essentials to ensure you're working with someone who can be of great help. For example, ask about the bookkeeping software. See if the freelancer communicates well. Ensure that the bookkeeper is keen on details to avoid committing errors. 

Most Common Financial Issues of a Business and How Bookkeepers Deal With Them

Some business owners, especially those who run small businesses, would often try to do the bookkeeping independently. It is not entirely wrong if you have the basic skills for it, but sooner or later, other business aspects will need your attention, too. As a business owner, you are responsible for supervising overall operations, training employees, and expanding the network. 

Bookkeeping tasks take up a lot of your time, which interferes with your other important duties. Fortunately,  you can get bookkeeping and administration services to handle your financial management. Leave this task to a professional team of bookkeeping and consulting services.

bookkeeping business meeting hands only

Source  

Making a Mistake in the Data Entry

Humans make mistakes; that's a known and acceptable fact. However, your business is a different matter, and even a tiny error can cause a massive loss in your finances. You can make an error for various reasons: either you're distracted with other aspects of your business, not familiar with the bookkeeping tool, or misinterpreted the bookkeeping data. 

Bookkeeper's Solution: With the help of a bookkeeping business, you can avoid such mistakes. Bookkeepers have a proactive approach by carefully reviewing data and seeking rooms for improvement to prevent errors.  

Not Enough Bookkeeping/Accounting Knowledge

Not having enough knowledge in bookkeeping tasks is a problem, especially key information. Of course, you can start learning the basics and familiarize yourself with the terms and documents, but that takes up a lot of time. 

Bookkeeper's Solution: Bookkeeping professionals already mastered basic and advanced knowledge, so that can save up a lot of your time. They can explain complex subjects in ways that you can easily understand. Having a bookkeeper doesn't prevent you from learning; it saves you time and makes learning easier.

The Records are Inconsistent

Proper and regular documentation of a business's financial records is a must. Constantly updated books are very important because they show current numbers you need to plan your next approach. But the lack of staff or knowledge in the documents to track leads to inconsistent records. 

Bookkeeper's Solution: A team dedicated to a specific job will do so much better and make you worry less about inconsistent records. One of the bookkeeper's tasks is to regularly update books and present them to you in a monthly report (or another specific schedule you agreed on).  

The Systems Used are Outdated 

You might not realize that the bookkeeping software you're using is already out of date. Since bookkeeping is not your primary job, it's understandable that you're not updated about it. An outdated bookkeeping system can't provide you instant and accurate reports, thus you experience redundant errors.

Bookkeeper's Solution: With a bookkeeper around, you don't need extensive research on systems. Professionals know the most recent and efficient tools to use for your books and can explain and demonstrate to you how the software helps conduct efficient bookkeeping tasks. 

The Cash Flow is Inconsistent

Managing the amount of money that goes in and out of your business can be very stressful, but they are significant aspects of a business. 82% of businesses fail because of poor cash flow. Therefore, you must work on them properly and ensure they serve as accurate sources of forecasting the cash flow.  

Bookkeeper's Solution: Worry no more with a dedicated bookkeeping business. They will be the ones to track account payables, receivables, payroll, inventory, and more. In addition, they will ensure that your books are consistently organized and updated, and the strategies you build from these data can address cash flow and profitability issues.

Irregular Monitoring of the Reports 

When you complete a financial report, that doesn't mean it's the end, and you can't be bothered looking into it anymore. You have to look at reports from time to time and compare them to plan your next move. There are different financial reports, and it can be overwhelming to monitor them all at once.

Bookkeeper's Solution: Bookkeepers usually set a consistent schedule for each report so they can regularly monitor all of them. Whether it's an income statement, a cash flow statement, or a balance sheet, bookkeepers have it all prepared with accurate information for reference.

Overlooking Small Transactions

Despite their quantity, small amounts of money matter significantly to a company's overall financial management. A business owner with ample responsibilities on his hands might overlook the minor details, which is not good. Every transaction makes a difference to the cash flow, so if you're unable to track that, you will end up with inaccurate data. 

Bookkeeper's Solution: Trying to figure out where and when that particular $10 or $20 were spent? The bookkeeper records every transaction involving the cash flow, so you get quick and precise answers when you find yourself asking, "where did the money go?" 

Unable to Comply with Set Dates

Failure to comply with due dates set for payment is a ticket to doom. You have to keep track of dates to pay loan covenants, deal with customer payments, review your financial statement, and other related appointments. If you can't process them on time, there will be some serious violations for you. In addition to that, you already have so much to do. You certainly don't want more issues to come up, especially being put in hot waters with the people you work with. 

Bookkeeper's Solution: Your bookkeeping department will prevent these dreadful scenarios from happening. Bookkeepers keep a regularly updated calendar for all of their tasks—daily, weekly, monthly, annual, and specific appointments are all covered. Rest assured that they will pass on these appointments to you in advance.

Conclusion

Before things get out of hand, trying out bookkeeping consulting services is a wise choice. Think ahead of the game and find a dedicated team to ensure your financial reports are organized and accurate. If you think it's costly to hire one, you can always choose from various services and find what works best. Think of it as a good investment in the long run. Instead of waiting for errors in your digits, prepare the solution beforehand with reliable bookkeeping and business services.

Read more

One of the many growing pains of your small business is the increasing volume of administrative tasks, particularly in bookkeeping. As a result, you face the dilemma of choosing whether to get bookkeeping services or do it yourself.

Growth is a good problem to have for small business owners like you. However, the decision of whether to outsource bookkeeping or not can make or break the growth of your business. We’re here to tell you that professional bookkeeping supports you and your business. Read on to find out why.

Bookkeeping as a Challenge for Growing Small Businesses

Bookkeeping touches on a lot of other challenges facing you as a small business owner. You want to be sure you’re getting an accurate reflection of your small business’s performance, which heavily relies on bookkeeping.

As your business grows, the volume of transactions follows. The bookkeeping workload increases too. As the data to be recorded increases, the more prone you are to missing a few transactions. 

Soon you will realize it’s becoming time-consuming to record all the transactions of your growing business. You may even dread doing it because you’re overwhelmed or you’d rather get back to looking for clients and selling, which you’d stopped doing for some time. Thus, your business ends up with poor bookkeeping, inaccurate financial reporting, and tax payments.

When bookkeeping becomes a challenge to small business owners, they tend to do it themselves or delegate it to an employee who has some bookkeeping skills. You, however, don’t have to do it yourself or get one of your employees to do it. Instead, you can find a reliable team of bookkeeping professionals who can go the extra mile.

What Do Bookkeepers Do Exactly

What Do Bookkeepers Do Exactly?

When you hear the word bookkeeper, your mind probably conjures an image of someone recording debits and credits, crunching numbers, and finding missing pennies. While this image is accurate, bookkeepers offer more than that. Here’s a quick rundown of a bookkeeper's services and what they can do for you.

Primary Bookkeeping Services

In the bookkeeping business, a bookkeeper is responsible for the following duties:

  • Classifying and analyzing transactions — Bookkeepers classify transactions according to their types, such as revenue, expenses, receivables, payables, acquisition, sale of company assets, withdrawal, or infusion of capital, before they put them down on a journal.
  • Recording — Commonly using the double-entry method, bookkeepers record the abovementioned transactions in two books: a journal and a ledger. These transactions will be used to make financial statements such as income statements, balance sheets, and cash flow statements.
  • Updating and correcting entries — Bookkeepers prepare all the unadjusted transactions recorded during the accounting period and find any discrepancies in the recording to keep the journal and the ledger entries up to date.
  • Reconciling and balancing entries — Bookkeepers conduct a trial balance and ensure that everything is accurate before handing it over to the accountant.

Additional Services

These are the duties bookkeepers can do that more or less overlap with their primary duties.

  • Bank account reconciliation — Bookkeepers reconcile the business’s bank accounts to ensure that the cash balance recorded in the books is in sync with the bank balances.
  • Payable and receivable supervision Bookkeepers oversee the ratio of payable and receivable transactions. They do this to ensure a healthy balance between the amounts owed and the amounts yet to be received.
  • Payroll — Bookkeepers can also do the company payroll to ensure the accuracy of the salary being disbursed.
  • Financial reporting — While an accountant usually does this, a bookkeeper can also perform this function when requested by an accountant or in the absence of one.

With all these duties broken down, it’s easy to see how much work a professional bookkeeper can take off your plate. Still not convinced? We explore its importance further in the next section. 

Importance of Bookkeeping Services for Small Business Growth

The Importance of Bookkeeping Services for Small Business Growth

Professional bookkeeping is invaluable for your business to grow and keep growing. Here are the reasons why.

  • It saves you time and money. You know the adage, “Time is money.” The task of keeping transaction records and everything in between is time-consuming. When bookkeeping sidetracks you from growing your business, profit slips through your fingers. Imagine how much time and money you can save when you hire a bookkeeper.
  • You get to know how your business is doing. For an owner of a growing business, knowledge is essential. You will want to know if you’re increasing your bottom line, keeping your costs low, and maintaining a healthy debt level with your growth efforts. Professional bookkeeping helps you find out all these things so that you can manage them effectively.
  • It keeps you in line with your taxes. As a business owner, it is your responsibility to ensure you’re paying the correct taxes and you’re following government regulations when doing so. Taxes can be complicated, so it’s a load of weight lifted off your shoulders when you get a booker to do that for you.

Unloop: A Bookkeeping Company That Helps Your Business Grow

Now you know how important it is to have a bookkeeper. That’s great, but you don’t want to just hire any accounting and bookkeeping services to do the job. You’ll want your bookkeeper to be as invested in the growth of your business as you are. You’ll want a partner, not an employee.

If this is the kind of bookkeeper you want, consider Unloop.

Unloop is a bookkeeping company that understands you because we are founders, too. We know how to help you grow your business by providing the following:

  • Low-cost but high-value bookkeeping solutions Unloop is not only your virtual bookkeeper but also your business partner. That’s why we keep the cost low while maintaining a high quality of service. 
  • Financial reports on a consistent basis — You don’t have to hire an accountant to prepare your financial statements. That’s part of what Unloop does, and we will send it to you consistently. As your partner, we will let you know if your business is growing.
  • Tech-savvy and efficient bookkeeping Unloop is well-versed in bookkeeping and accounting software, which allows us to record data and provide it to you on-demand. All you have to do is ask, anytime, anywhere.

If this gets you excited, try Unloop’s bookkeeping services for one month for free. Get to know how committed we are to the growth of your business today.

How Bookkeeping Services Support Small Business Growth
Watch Now

One of the many growing pains of your small business is the increasing volume of administrative tasks, particularly in bookkeeping. As a result, you face the dilemma of choosing whether to get bookkeeping services or do it yourself.

Growth is a good problem to have for small business owners like you. However, the decision of whether to outsource bookkeeping or not can make or break the growth of your business. We’re here to tell you that professional bookkeeping supports you and your business. Read on to find out why.

Bookkeeping as a Challenge for Growing Small Businesses

Bookkeeping touches on a lot of other challenges facing you as a small business owner. You want to be sure you’re getting an accurate reflection of your small business’s performance, which heavily relies on bookkeeping.

As your business grows, the volume of transactions follows. The bookkeeping workload increases too. As the data to be recorded increases, the more prone you are to missing a few transactions. 

Soon you will realize it’s becoming time-consuming to record all the transactions of your growing business. You may even dread doing it because you’re overwhelmed or you’d rather get back to looking for clients and selling, which you’d stopped doing for some time. Thus, your business ends up with poor bookkeeping, inaccurate financial reporting, and tax payments.

When bookkeeping becomes a challenge to small business owners, they tend to do it themselves or delegate it to an employee who has some bookkeeping skills. You, however, don’t have to do it yourself or get one of your employees to do it. Instead, you can find a reliable team of bookkeeping professionals who can go the extra mile.

What Do Bookkeepers Do Exactly

What Do Bookkeepers Do Exactly?

When you hear the word bookkeeper, your mind probably conjures an image of someone recording debits and credits, crunching numbers, and finding missing pennies. While this image is accurate, bookkeepers offer more than that. Here’s a quick rundown of a bookkeeper's services and what they can do for you.

Primary Bookkeeping Services

In the bookkeeping business, a bookkeeper is responsible for the following duties:

  • Classifying and analyzing transactions — Bookkeepers classify transactions according to their types, such as revenue, expenses, receivables, payables, acquisition, sale of company assets, withdrawal, or infusion of capital, before they put them down on a journal.
  • Recording — Commonly using the double-entry method, bookkeepers record the abovementioned transactions in two books: a journal and a ledger. These transactions will be used to make financial statements such as income statements, balance sheets, and cash flow statements.
  • Updating and correcting entries — Bookkeepers prepare all the unadjusted transactions recorded during the accounting period and find any discrepancies in the recording to keep the journal and the ledger entries up to date.
  • Reconciling and balancing entries — Bookkeepers conduct a trial balance and ensure that everything is accurate before handing it over to the accountant.

Additional Services

These are the duties bookkeepers can do that more or less overlap with their primary duties.

  • Bank account reconciliation — Bookkeepers reconcile the business’s bank accounts to ensure that the cash balance recorded in the books is in sync with the bank balances.
  • Payable and receivable supervision Bookkeepers oversee the ratio of payable and receivable transactions. They do this to ensure a healthy balance between the amounts owed and the amounts yet to be received.
  • Payroll — Bookkeepers can also do the company payroll to ensure the accuracy of the salary being disbursed.
  • Financial reporting — While an accountant usually does this, a bookkeeper can also perform this function when requested by an accountant or in the absence of one.

With all these duties broken down, it’s easy to see how much work a professional bookkeeper can take off your plate. Still not convinced? We explore its importance further in the next section. 

Importance of Bookkeeping Services for Small Business Growth

The Importance of Bookkeeping Services for Small Business Growth

Professional bookkeeping is invaluable for your business to grow and keep growing. Here are the reasons why.

  • It saves you time and money. You know the adage, “Time is money.” The task of keeping transaction records and everything in between is time-consuming. When bookkeeping sidetracks you from growing your business, profit slips through your fingers. Imagine how much time and money you can save when you hire a bookkeeper.
  • You get to know how your business is doing. For an owner of a growing business, knowledge is essential. You will want to know if you’re increasing your bottom line, keeping your costs low, and maintaining a healthy debt level with your growth efforts. Professional bookkeeping helps you find out all these things so that you can manage them effectively.
  • It keeps you in line with your taxes. As a business owner, it is your responsibility to ensure you’re paying the correct taxes and you’re following government regulations when doing so. Taxes can be complicated, so it’s a load of weight lifted off your shoulders when you get a booker to do that for you.

Unloop: A Bookkeeping Company That Helps Your Business Grow

Now you know how important it is to have a bookkeeper. That’s great, but you don’t want to just hire any accounting and bookkeeping services to do the job. You’ll want your bookkeeper to be as invested in the growth of your business as you are. You’ll want a partner, not an employee.

If this is the kind of bookkeeper you want, consider Unloop.

Unloop is a bookkeeping company that understands you because we are founders, too. We know how to help you grow your business by providing the following:

  • Low-cost but high-value bookkeeping solutions Unloop is not only your virtual bookkeeper but also your business partner. That’s why we keep the cost low while maintaining a high quality of service. 
  • Financial reports on a consistent basis — You don’t have to hire an accountant to prepare your financial statements. That’s part of what Unloop does, and we will send it to you consistently. As your partner, we will let you know if your business is growing.
  • Tech-savvy and efficient bookkeeping Unloop is well-versed in bookkeeping and accounting software, which allows us to record data and provide it to you on-demand. All you have to do is ask, anytime, anywhere.

If this gets you excited, try Unloop’s bookkeeping services for one month for free. Get to know how committed we are to the growth of your business today.

Read more

Accounting may cause a lot of headaches and become a source of stress, especially for business owners wanting to set up their books for the first time. With great business comes great accounting, which means the larger the business, the more challenging it is to manage its finances.

One of the fundamental decisions you must make in setting up your finances is deciding which type of accounting to use—cash basis or accrual basis. This article aims to explain the difference between these two and help you choose the best fit for your business needs.

How revenue and expenses are recognized and recorded spells out the main difference between cash and accrual accounting. Let’s take a closer look, shall we?

Cash Basis Accounting

Although cash basis accounting is relatively easy and simple to use, it also has its disadvantages and may not be appropriate for some businesses.

This type of accounting recognizes revenue only as soon as you’ve received the payment and not upon earning it. Meanwhile, it recognizes expense only once it’s been paid and not when it was incurred or billed by your supplier.

Basically, you get to easily track your cash flow with actual amounts that go in and out of your bank account. However, note that this alone does not provide an accurate picture of whether your business is doing well or not.

Accrual Basis Accounting

Accrual basis accounting, on the other hand, is more complicated than the former but offers more accurate and reliable information to aid you with your financial decisions.

Here, revenue is recognized the moment it is earned, regardless of whether or not the payment is already received; whereas, expense is recognized once it is incurred, following the same condition.

This follows the matching principle, an important concept in accrual accounting, wherein expense is recognized and recorded in the same period when the revenue is earned.

Now that you have the basic concepts of cash and accrual accounting, let’s understand these concepts better with the help of some examples.

Example 1:

The company made a credit sale on August 29 and sent an invoice to its customer on the same day, stating that the payment is due after 30 days. Although the payment is still due on September 29, the customer has already paid the amount due on September 25. In the company’s books, when will the revenue be recognized using cash basis accounting and accrual basis accounting?

In cash basis accounting, you will only recognize the revenue from the above sale on September 25—when you’ve received the payment from the customer and neither on the date you sent the sales invoice (i.e., August 29) nor on the payment’s due date (i.e., September 29).

However, in accrual basis accounting, you will already recognize the revenue on August 29 because this is when you have made the sale, although not necessarily the payment.

Example 2:

The company is billed by its lessor for its rent on March 23. The company only made its payment on April 30, when the payment was due. When will the company need to recognize the rent expense following cash basis accounting and accrual basis accounting?

In cash basis accounting, the company will need to record its rent expense on April 30—when the actual payment was made to the lessor.

For accrual basis accounting, the company will already have to record the rent expense on March 23—when the lessor billed the company. During this date, the expense is already considered as incurred regardless of its payment status.

Example 3:

In December, the company purchased its inventory of pajamas for $300 and sold them for a total amount of $700. How much is the related cost of goods sold during the same month when the sales were only $420 and 60% of the total inventory was sold? Note that the company uses accrual basis accounting.

In this example, following the matching principle under accrual basis accounting, the company should only record $180 [$300 x 60%] as the cost of goods sold to match the amount of sales of $420. Gross profit will be $240.

The company should not record the whole purchase amount of $300 as its cost of goods sold during the month. Accrual basis accounting will only allow you to expense those related to your current sales.

Assuming that the company both paid for the purchase of inventory and received payment for its sales in the month of December, the company will record its revenue for $420 but will also record the whole amount of $300 under cash basis accounting. This will generate a gross profit of $120 in the company’s books.

Moreover, let’s assume that in the next month (i.e., January), the company sold the remaining inventory (40% of total inventory) for $280. The same matching principle applies to accrual basis accounting; hence, the cost of goods sold will still be recognized based on the amount of sales. For sales amounting to $280, the corresponding cost of goods sold is $120 (40% of $300), yielding a gross profit of $160.

In cash basis accounting, the company will show a greater gross profit of $280 for the month of January since no additional purchases were made during this month. However, it does not mean that the company did better and is more profitable in January compared to December. 

Refer to the table below to compare the gross profit between the two types of accounting for Example 3.

DecemberJanuary
AccountCash BasisAccrual BasisCash BasisAccrual Basis
Sales$420$420$280$280
Cost of Goods Sold$300$180-$120
Gross Profit$120$240$280$160

This shows one of the disadvantages of cash basis accounting, wherein the amounts fluctuate depending on the cash inflow and outflow. These fluctuations may interfere with more consistent data, making it unideal for long-term analyses, such as profitability trends.

Conclusion

Ultimately, deciding which type of accounting to use for your business depends on your needs. Some may only need to track their actual cash flow; hence, cash basis accounting may be a better fit. Otherwise, if you need more detailed information about your numbers and performance, you’re better off with accrual basis accounting.

Cash Accounting vs. Accrual Accounting
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Accounting may cause a lot of headaches and become a source of stress, especially for business owners wanting to set up their books for the first time. With great business comes great accounting, which means the larger the business, the more challenging it is to manage its finances.

One of the fundamental decisions you must make in setting up your finances is deciding which type of accounting to use—cash basis or accrual basis. This article aims to explain the difference between these two and help you choose the best fit for your business needs.

How revenue and expenses are recognized and recorded spells out the main difference between cash and accrual accounting. Let’s take a closer look, shall we?

Cash Basis Accounting

Although cash basis accounting is relatively easy and simple to use, it also has its disadvantages and may not be appropriate for some businesses.

This type of accounting recognizes revenue only as soon as you’ve received the payment and not upon earning it. Meanwhile, it recognizes expense only once it’s been paid and not when it was incurred or billed by your supplier.

Basically, you get to easily track your cash flow with actual amounts that go in and out of your bank account. However, note that this alone does not provide an accurate picture of whether your business is doing well or not.

Accrual Basis Accounting

Accrual basis accounting, on the other hand, is more complicated than the former but offers more accurate and reliable information to aid you with your financial decisions.

Here, revenue is recognized the moment it is earned, regardless of whether or not the payment is already received; whereas, expense is recognized once it is incurred, following the same condition.

This follows the matching principle, an important concept in accrual accounting, wherein expense is recognized and recorded in the same period when the revenue is earned.

Now that you have the basic concepts of cash and accrual accounting, let’s understand these concepts better with the help of some examples.

Example 1:

The company made a credit sale on August 29 and sent an invoice to its customer on the same day, stating that the payment is due after 30 days. Although the payment is still due on September 29, the customer has already paid the amount due on September 25. In the company’s books, when will the revenue be recognized using cash basis accounting and accrual basis accounting?

In cash basis accounting, you will only recognize the revenue from the above sale on September 25—when you’ve received the payment from the customer and neither on the date you sent the sales invoice (i.e., August 29) nor on the payment’s due date (i.e., September 29).

However, in accrual basis accounting, you will already recognize the revenue on August 29 because this is when you have made the sale, although not necessarily the payment.

Example 2:

The company is billed by its lessor for its rent on March 23. The company only made its payment on April 30, when the payment was due. When will the company need to recognize the rent expense following cash basis accounting and accrual basis accounting?

In cash basis accounting, the company will need to record its rent expense on April 30—when the actual payment was made to the lessor.

For accrual basis accounting, the company will already have to record the rent expense on March 23—when the lessor billed the company. During this date, the expense is already considered as incurred regardless of its payment status.

Example 3:

In December, the company purchased its inventory of pajamas for $300 and sold them for a total amount of $700. How much is the related cost of goods sold during the same month when the sales were only $420 and 60% of the total inventory was sold? Note that the company uses accrual basis accounting.

In this example, following the matching principle under accrual basis accounting, the company should only record $180 [$300 x 60%] as the cost of goods sold to match the amount of sales of $420. Gross profit will be $240.

The company should not record the whole purchase amount of $300 as its cost of goods sold during the month. Accrual basis accounting will only allow you to expense those related to your current sales.

Assuming that the company both paid for the purchase of inventory and received payment for its sales in the month of December, the company will record its revenue for $420 but will also record the whole amount of $300 under cash basis accounting. This will generate a gross profit of $120 in the company’s books.

Moreover, let’s assume that in the next month (i.e., January), the company sold the remaining inventory (40% of total inventory) for $280. The same matching principle applies to accrual basis accounting; hence, the cost of goods sold will still be recognized based on the amount of sales. For sales amounting to $280, the corresponding cost of goods sold is $120 (40% of $300), yielding a gross profit of $160.

In cash basis accounting, the company will show a greater gross profit of $280 for the month of January since no additional purchases were made during this month. However, it does not mean that the company did better and is more profitable in January compared to December. 

Refer to the table below to compare the gross profit between the two types of accounting for Example 3.

DecemberJanuary
AccountCash BasisAccrual BasisCash BasisAccrual Basis
Sales$420$420$280$280
Cost of Goods Sold$300$180-$120
Gross Profit$120$240$280$160

This shows one of the disadvantages of cash basis accounting, wherein the amounts fluctuate depending on the cash inflow and outflow. These fluctuations may interfere with more consistent data, making it unideal for long-term analyses, such as profitability trends.

Conclusion

Ultimately, deciding which type of accounting to use for your business depends on your needs. Some may only need to track their actual cash flow; hence, cash basis accounting may be a better fit. Otherwise, if you need more detailed information about your numbers and performance, you’re better off with accrual basis accounting.

Read more

Running a business may seem overwhelmingly rewarding, especially in today's outlook. With small businesses thriving online and successful low-capital startups emerging everywhere, one can say that it must be easy to run a business. Many business industries scale and expand so quickly once they find the right niche or product to sell. However, note that the cost of having great success also comes with the great responsibility of making sure all business records and financial data are intact and correct. 

Accurate bookkeeping can help the stakeholders make crucial business decisions. Reliable financial data is key to identifying the next step for the business venture. Apart from having the necessary data available, there should be a system, which ensures that all transactions are appropriately categorized for financial reports to be prompt and accurate. 

The following business elements explain why bookkeeping is important:

Cash 

Cash is the lifeblood of the entire operation. Everything in a business for profit is driven by cash, so it is imperative to ensure that all cash receipts and disbursements are accounted for. Constant reconciliations must be made between the movements in the bank statements and the books. We are in an age wherein almost all cash transactions are done via bank transfer or credit card. Although the bank statements automatically show the merchant or recipient for such transactions, the habit of appropriately categorizing it right after it takes place goes a long way when it is time to summarize those financial reports.

Inventory and Cost of Goods Sold 

When you buy inventory from a supplier, you need to account for it against the cost of goods sold. This amount is not just the sum total of all the payments incurred to the supplier. A $5.00 mug you have been sourcing from a reliable supplier may look profitable if you sell it for $20.00, but have you considered how much it costs to ship it to the warehouse and the customer? How about the customs fees and the various third-party salaries behind the shipment? There are numerous factors to consider when computing the actual selling price of a product and it will only get more complicated as the number of products or services increases. Having a reliable system for computing the cost of goods would be advantageous when reviewing the profitability per product or determining if the business is better off without it. 

Receivables and Payables 

Keeping track of one’s own dues and collections is still a manageable task for small businesses, but once the business starts to scale, overlooking new and old transactions flooding your ledgers becomes a whole ‘nother ballpark. Knowing which customers are prompt and reliable would be helpful in making a major decision, especially if the cash flow is currently tight. Setting time to organize a list of your supplier’s terms and due dates would maximize your cash position. Take advantage of early-bird discounts from specific vendors.

Sales

All cash receipts may pertain to revenue or sales, but you must also keep track of which ones to be recognized as other income. Some cash inlay may pertain to interest income, which should not be part of your main revenue. Setting unique tags and keywords per sales category will also be a big help in determining which sales products, channels, or demographics you should focus your market study and improvements on.

Operating Expenses 

Trend analysis with expenses is vital when it comes to forecasting budgets and sales quotas for the next period. Regularly preparing a monthly Profit and Loss statement might seem like a tedious job, but it will be an excellent basis to see how the business is currently standing. With so many online subscriptions and recurring expenses nowadays, one must keep track of which is necessary or not to minimize losses. It is also vital to accurately categorize all expenses as some may have different tax rate deductions. When it comes to looking at the bottom-line figures, this will be a great way to maximize profits.

There are many tools and platforms available online that can aid business owners in having top-notch accounting records. However, it is also essential to make the data as straightforward as possible in order to generate any financial report on time. Bookkeeping is and will always be a beneficial cloud-based function everyone should take advantage of. Meanwhile, data protection is an important service that entails handling sensitive information, which you should only delegate to a reliable team.

Conclusion

In conclusion, it is worth maintaining an accurate bookkeeping system regardless of the nature of your business. Think of it as some sort of investment. The earlier you start properly bookkeeping your financial records, the easier it will be to transition to bigger operations as your business grows.

You do not have to be a professional accountant in order to maintain books, but as the business undergoes expansion, you should consider hiring experts to ensure that the necessary accounting records have a solid foundation for the upcoming years. You need someone who can perform the tedious process of ensuring all financial reports are of the government's standards when tax season comes. With Unloop in the picture, keeping your books will be a breeze.

Importance‌ ‌of‌ ‌Bookkeeping‌ ‌in‌ ‌2021‌
Watch Now

Running a business may seem overwhelmingly rewarding, especially in today's outlook. With small businesses thriving online and successful low-capital startups emerging everywhere, one can say that it must be easy to run a business. Many business industries scale and expand so quickly once they find the right niche or product to sell. However, note that the cost of having great success also comes with the great responsibility of making sure all business records and financial data are intact and correct. 

Accurate bookkeeping can help the stakeholders make crucial business decisions. Reliable financial data is key to identifying the next step for the business venture. Apart from having the necessary data available, there should be a system, which ensures that all transactions are appropriately categorized for financial reports to be prompt and accurate. 

The following business elements explain why bookkeeping is important:

Cash 

Cash is the lifeblood of the entire operation. Everything in a business for profit is driven by cash, so it is imperative to ensure that all cash receipts and disbursements are accounted for. Constant reconciliations must be made between the movements in the bank statements and the books. We are in an age wherein almost all cash transactions are done via bank transfer or credit card. Although the bank statements automatically show the merchant or recipient for such transactions, the habit of appropriately categorizing it right after it takes place goes a long way when it is time to summarize those financial reports.

Inventory and Cost of Goods Sold 

When you buy inventory from a supplier, you need to account for it against the cost of goods sold. This amount is not just the sum total of all the payments incurred to the supplier. A $5.00 mug you have been sourcing from a reliable supplier may look profitable if you sell it for $20.00, but have you considered how much it costs to ship it to the warehouse and the customer? How about the customs fees and the various third-party salaries behind the shipment? There are numerous factors to consider when computing the actual selling price of a product and it will only get more complicated as the number of products or services increases. Having a reliable system for computing the cost of goods would be advantageous when reviewing the profitability per product or determining if the business is better off without it. 

Receivables and Payables 

Keeping track of one’s own dues and collections is still a manageable task for small businesses, but once the business starts to scale, overlooking new and old transactions flooding your ledgers becomes a whole ‘nother ballpark. Knowing which customers are prompt and reliable would be helpful in making a major decision, especially if the cash flow is currently tight. Setting time to organize a list of your supplier’s terms and due dates would maximize your cash position. Take advantage of early-bird discounts from specific vendors.

Sales

All cash receipts may pertain to revenue or sales, but you must also keep track of which ones to be recognized as other income. Some cash inlay may pertain to interest income, which should not be part of your main revenue. Setting unique tags and keywords per sales category will also be a big help in determining which sales products, channels, or demographics you should focus your market study and improvements on.

Operating Expenses 

Trend analysis with expenses is vital when it comes to forecasting budgets and sales quotas for the next period. Regularly preparing a monthly Profit and Loss statement might seem like a tedious job, but it will be an excellent basis to see how the business is currently standing. With so many online subscriptions and recurring expenses nowadays, one must keep track of which is necessary or not to minimize losses. It is also vital to accurately categorize all expenses as some may have different tax rate deductions. When it comes to looking at the bottom-line figures, this will be a great way to maximize profits.

There are many tools and platforms available online that can aid business owners in having top-notch accounting records. However, it is also essential to make the data as straightforward as possible in order to generate any financial report on time. Bookkeeping is and will always be a beneficial cloud-based function everyone should take advantage of. Meanwhile, data protection is an important service that entails handling sensitive information, which you should only delegate to a reliable team.

Conclusion

In conclusion, it is worth maintaining an accurate bookkeeping system regardless of the nature of your business. Think of it as some sort of investment. The earlier you start properly bookkeeping your financial records, the easier it will be to transition to bigger operations as your business grows.

You do not have to be a professional accountant in order to maintain books, but as the business undergoes expansion, you should consider hiring experts to ensure that the necessary accounting records have a solid foundation for the upcoming years. You need someone who can perform the tedious process of ensuring all financial reports are of the government's standards when tax season comes. With Unloop in the picture, keeping your books will be a breeze.

Read more

The thought of hiring a professional to handle your finances can be daunting, and it’s a valid concern— just think about the substantial fees involved in such a service. Although doing the accounting yourself in your business might seem like the economical solution, there may be some accounting loopholes you cannot do yourself. Investing in a reliable and trustworthy accountant is the way to go. Still not convinced? This article will enumerate specific crossroads you may consider the perfect time to hire an external accountant.

When you do not understand where you stand in your business

It is easy to say that the business must be generating profits as cash flow tends to be positive. However, an accountant may be able to give you more insights not just concerning your current performance but also where the business will see itself in the future. You may be able to pay all your suppliers and employees on time but have you considered longevity? Will your business be able to sustain a loss if another crisis occurs? An accountant can help you give meaning to the numbers across your financial reports. Moreover, an accountant can also help you make sound financial decisions for your business, be it short-term or long-term.

When you need to know relevant financial data for a specific time period

Making major business decisions will require prompt and accurate financial information. Whether it is about taking up a loan or deciding to change suppliers, you will need to take a step back and see if you are capable of such change. An unbiased and professional perspective would be advantageous if you need to formulate crucial decisions from those reports. Preparing the financial statements is no joke—to a new business owner, it might take weeks or even months to consolidate everything and still end up with material misstatements. Presenting misstatements or inaccurate data to important stakeholders would be very risky as it could harm your relationship with the bank or even potential investors. Seasoned accountants are trained and have been exposed to delivering financial statements promptly. Despite the time constraints and tight deadlines, a reliable accountant will not sacrifice the quality of such reports in accordance with regulatory requirements set by the accounting standards.

When you need to focus on other business aspects

The complexity of bookkeeping has a direct relationship with the size and success of your business. The more transactions you have, the more categorizing you need to do. Although you can always automate and systemize this process, there may still be instances when you’re at a loss on how to go about recording new and unique transactions. This is when an accountant’s expertise will come into play. Moreover, some financial tasks may be so complicated that you would need to seek help from an accountant. An example of this is payroll. When your business starts to get bigger, you would naturally hire more employees and processing payroll stops being a one-person job. As a business owner, you will need to oversee all operations and dedicate your time to the more profitable ones. Delegating this task to a professional team will spare you these worries.

When you do not know if you are filing your taxes properly

It is better to be safe than sorry when it comes to filing your taxes. Each country has its own business tax laws you must abide by, along with local tax codes you need to understand to correctly compute your tax due. The Canadian Revenue Agency and other tax collecting agencies in the world compute your taxes according to these laws and codes. You mustn’t take these matters for granted as authorities may come for you upon tax assessment. You would not want to pay the incorrect amount and incur interest and penalties; hence, it would be better if you had an accountant with tax expertise on your side, helping you file your tax returns.

When your budget permits you to do so

When you’ve finally decided to hire a professional, you should not just jump into getting a big firm to do your books. Budget is a big factor when it comes to picking an accountant. The amount you spend on professional services should not be harmful to your bottom line figures. Engaging yourself with an expensive professional might cause you to have a net loss instead. Getting an independent freelancer just might do the job, saving you a lot of money. Large accounting firms or small local practitioners will give you proposals, which contain the fees and scope of services they offer, so make sure to do your research and study each and every last one.

Takeaway

In conclusion, it is solely up to you when you should hire an external accountant. If you run a small business and have an accounting background with enough knowledge of properly filing taxes, doing it yourself may be the best option. But as your business grows and operations start to become complex, it is best to manage your time properly and let the professional do the accounting while you focus on more important aspects of your business. Hiring an external accountant may be a high price to pay, but all the advantages that come with it make this investment worth it.

When to Hire an External Accountant
Watch Now

The thought of hiring a professional to handle your finances can be daunting, and it’s a valid concern— just think about the substantial fees involved in such a service. Although doing the accounting yourself in your business might seem like the economical solution, there may be some accounting loopholes you cannot do yourself. Investing in a reliable and trustworthy accountant is the way to go. Still not convinced? This article will enumerate specific crossroads you may consider the perfect time to hire an external accountant.

When you do not understand where you stand in your business

It is easy to say that the business must be generating profits as cash flow tends to be positive. However, an accountant may be able to give you more insights not just concerning your current performance but also where the business will see itself in the future. You may be able to pay all your suppliers and employees on time but have you considered longevity? Will your business be able to sustain a loss if another crisis occurs? An accountant can help you give meaning to the numbers across your financial reports. Moreover, an accountant can also help you make sound financial decisions for your business, be it short-term or long-term.

When you need to know relevant financial data for a specific time period

Making major business decisions will require prompt and accurate financial information. Whether it is about taking up a loan or deciding to change suppliers, you will need to take a step back and see if you are capable of such change. An unbiased and professional perspective would be advantageous if you need to formulate crucial decisions from those reports. Preparing the financial statements is no joke—to a new business owner, it might take weeks or even months to consolidate everything and still end up with material misstatements. Presenting misstatements or inaccurate data to important stakeholders would be very risky as it could harm your relationship with the bank or even potential investors. Seasoned accountants are trained and have been exposed to delivering financial statements promptly. Despite the time constraints and tight deadlines, a reliable accountant will not sacrifice the quality of such reports in accordance with regulatory requirements set by the accounting standards.

When you need to focus on other business aspects

The complexity of bookkeeping has a direct relationship with the size and success of your business. The more transactions you have, the more categorizing you need to do. Although you can always automate and systemize this process, there may still be instances when you’re at a loss on how to go about recording new and unique transactions. This is when an accountant’s expertise will come into play. Moreover, some financial tasks may be so complicated that you would need to seek help from an accountant. An example of this is payroll. When your business starts to get bigger, you would naturally hire more employees and processing payroll stops being a one-person job. As a business owner, you will need to oversee all operations and dedicate your time to the more profitable ones. Delegating this task to a professional team will spare you these worries.

When you do not know if you are filing your taxes properly

It is better to be safe than sorry when it comes to filing your taxes. Each country has its own business tax laws you must abide by, along with local tax codes you need to understand to correctly compute your tax due. The Canadian Revenue Agency and other tax collecting agencies in the world compute your taxes according to these laws and codes. You mustn’t take these matters for granted as authorities may come for you upon tax assessment. You would not want to pay the incorrect amount and incur interest and penalties; hence, it would be better if you had an accountant with tax expertise on your side, helping you file your tax returns.

When your budget permits you to do so

When you’ve finally decided to hire a professional, you should not just jump into getting a big firm to do your books. Budget is a big factor when it comes to picking an accountant. The amount you spend on professional services should not be harmful to your bottom line figures. Engaging yourself with an expensive professional might cause you to have a net loss instead. Getting an independent freelancer just might do the job, saving you a lot of money. Large accounting firms or small local practitioners will give you proposals, which contain the fees and scope of services they offer, so make sure to do your research and study each and every last one.

Takeaway

In conclusion, it is solely up to you when you should hire an external accountant. If you run a small business and have an accounting background with enough knowledge of properly filing taxes, doing it yourself may be the best option. But as your business grows and operations start to become complex, it is best to manage your time properly and let the professional do the accounting while you focus on more important aspects of your business. Hiring an external accountant may be a high price to pay, but all the advantages that come with it make this investment worth it.

Read more

One of the services offered by the eCommerce giant Amazon that can bring many benefits to your business is the Fulfillment by Amazon (FBA), which both sellers and buyers patronize. For sellers, it is a venue for their products to be stored, as well as a way to send orders to customers anytime. For buyers, FBA is a reliable and credible method of getting their orders because they can rely on 24/7 customer service if they have any inquiries. 

If you are starting your business and looking into Amazon FBA seller accounting, you are on the right track. Keep on reading below to know the fundamentals of this service. 

What is Amazon Seller Accounting?

There are many areas in your business that you need to track once you begin on Amazon, and accounting will be the way for you to track your money. While you are busy checking the performance of your keywords, listing rankings, and ad performance, you also need to monitor the money coming out of your bank and the money coming in from sales. 

Accounting, especially automated ones, will give you a quick view and report of your finances. These numbers will then guide you on your future steps and whether your current strategies effectively sustain and make your business profitable. 

The Benefits of Accounting on Amazon

Data-filled reports for decision making

Once you begin your business accounting, you can get plenty of reports that will help you create strategies and make decisions.

  • Income statement report: This report will straightforwardly show you your business gains and losses. 
  • Balance Sheet: This one will list your assets and liabilities. 
  • Trends: A deep dive into the inventory report you will get will show you details, such as the best-selling products, which can help you decide where to invest more to get more sales. 
  • Inventory monitoring: As your products move from the Amazon warehouse to your customers, you need to decide on replenishing your stocks. Your inventory data will allow you to decide which products to replenish more or discontinue restocking because of low sales. 
  • Cash Flow Forecast: The excellent characteristic of these reports is that they can be stored, so you’ll have a resource of historical data to see the progress of your business. With the past and present data, you can also simulate financial business moves to see whether a plan will make your business profitable or not. 

Address red flags immediately

Your business will only grow and move forward if you manage your money well. Part of proper financial management is knowing the factors that hurt your business right away and enacting ways to stop the issues to avoid further damage. It is even better to inhibit these problems from happening by planning proactively.

Common problems:

  • Cash flow: A typical cash flow mismanagement is not monitoring the money from sales and comes out to pay suppliers and other dues. This challenging situation can snowball into more challenges in your finances. 
  • Payment to supplier and loans: Late or non-payment of your dues results from cash flow mismanagement. If you fail to do this, authorities can halt your business operations, and stocks won’t come in. Interests from loans may also pile up.
  • Payroll: If you have employees relying on you, the inability to do accounting properly can also affect their timely acquisition of salaries. 
  • Taxes: You’ll be in massive trouble if you do not pay your taxes. Taxation is among the first costs you should be considering. Still, if you cram only weeks before tax-paying day, it can mess up your financial status, or you could be late in paying your taxes, which can also result in penalties.

Your business moves are tied with your financial capability

Now that you have in-house accountants or a third-party agency offering Amazon seller accounting services, you can be at peace. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business’ current status and manage your growth. 

With that, you’ll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to assure their quality and increase sales. All these steps are done with coherence to the financial status of your business. 

Some strategies that company executives and accountants use are the Profit First Framework and the Traditional Accounting

  • Profit First Framework: This formula goes like this: sales minus the profit equals the expenses. If you are increasing your profit, you should always prioritize putting it aside and spending what is left for your expenses. 
  • Traditional Accounting: On the other hand, you can also go traditional and use this formula: sales minus the expenses equals the profit. 

Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end. 

5 Sure Steps To Begin Amazon Accounting

  1. Begin accounting early

When is an early time? Honestly, it would be best if you start accounting the moment you start your business. Typical mistake sellers make is minding accounting only during tax season. Monitoring your assets and liabilities should be done immediately. 

The tasks you’ll need to accomplish initially never ends, but fulfill first what ensures your business survival and success-- accounting. 

Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best if you delegate this task to specialists. All these details are best accomplished and planned together with your store and product launch planning. 

  1. Register for business taxation right away

Whether it’s an online or physical store, when you open a business, you should register your business for necessary permits and, most especially, for taxation. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not register. Doing this is just delaying and increasing the hassle. Your business will be at risk of getting fines for not paying on time or at all. 

Defining how much tax you need to pay also ensures that you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact if you are using this. 

  1. Delegate the accounting tasks to experts

If you are a trained accountant with experience in handling Amazon Seller Central accounting, then you can handle the accounting of your business. However, if you do not have a background in this area, it is better to delegate it to experts. 

  • Hire in-house accountants: The advantage of having your accountant in your team is that these accountants know the details about your business as they experience it firsthand. Their insights will be more in-depth as well. 
  • Partner with an agency: There are already agencies offering Amazon and eCommerce accounting. Delegating it to a third-party agency lifts the load of managing another team in your company. However, you need to explain in detail how your business works so these accountants know what they are dealing with. 
  1. Have regular accounting reports

Your weekly, monthly, quarterly, and year-end reviews should always have accounting reports. As the business owner, you will decide how you want the accounting reports to look like, what reports you want to get, and how often you’ll get the reports. Here are some samples:

ReportDetails You Can include
Cash Flow Management Reportquick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding
Profit and Loss Reportgross profit margin, opex ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit
Financial Performance Reportbalance sheet, assets return, working capital ratio, equity return, debt-equity ratio
Financial Key Performance Indicators Reportcurrent working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital
Financial statementrevenue, gross profit, Earning Before Interest and tax (EBIT), operating expenses, net income, Economic Value Added (EVA), berry ratio, employee satisfaction, customer satisfaction

All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, these reports’ inclusions are not fixed, which means they can change depending on what value your company prioritizes. Hence, it is important to see those details in the report. 

  1. Automate everything

If you have an automated system, all these reports can be checked anytime— and even daily— to acquire the data. Excel works and automation can also be acquired using this system. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.

Here are the benefits of using a software:

  • Reports on Amazon KPIs
  • Reports are available even on mobile
  • Allows integration not only on Amazon but in other eCommerce platforms

Many software allow a free trial, but most work on paid plans. Your investment is worth it with the insights you’ll get automatically. 

Top Accounting Softwares To Use

You can choose numerous software to assist you with Amazon accounting, but here are the top five we can recommend. 

  • Fetcher

If you are only looking into accounting for Amazon FBA, you’ll get more than that with Fetcher. This software will generate reports related to your PPC campaigns, refund tracking, and more reports that could give you visuals and an idea of your business’s status. The order coverage it offers depends on the plan you will avail of. 

  • Xero

Another popular choice of accountants and small business owners is the software Xero. You can enjoy the functions of this tool at zero cost. It also provides basic reports like cash flow, inventory, expense claims, and more. 

  • Taxomate

As the name of this software suggests, it will be the tool that can assist you with all your tax reports. It would be best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate. 

  • GoDaddy

GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can check your sales, balances, profit, and loss, and create invoices for your Amazon, Etsy, eBay, and PayPal accounts through this software. 

  • A2X

Another software you’ll often hear in the Amazon accounting world is A2X, which should be combined with QuickBooks, Amazon, Shopify, or Zero to maximize its accounting capabilities. Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X. 

What’s next?

Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action. Begin your business if you haven’t started one. Suppose you are still relying on excel sheets. In that case, this is the time to level your processes and reporting by moving to automated reports from software. 

You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We’d love to discuss how we can help you with Amazon accounting. Contact Unloop now.

Track Your Business Finances: A Deep Dive Into Amazon Seller Accounting
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One of the services offered by the eCommerce giant Amazon that can bring many benefits to your business is the Fulfillment by Amazon (FBA), which both sellers and buyers patronize. For sellers, it is a venue for their products to be stored, as well as a way to send orders to customers anytime. For buyers, FBA is a reliable and credible method of getting their orders because they can rely on 24/7 customer service if they have any inquiries. 

If you are starting your business and looking into Amazon FBA seller accounting, you are on the right track. Keep on reading below to know the fundamentals of this service. 

What is Amazon Seller Accounting?

There are many areas in your business that you need to track once you begin on Amazon, and accounting will be the way for you to track your money. While you are busy checking the performance of your keywords, listing rankings, and ad performance, you also need to monitor the money coming out of your bank and the money coming in from sales. 

Accounting, especially automated ones, will give you a quick view and report of your finances. These numbers will then guide you on your future steps and whether your current strategies effectively sustain and make your business profitable. 

The Benefits of Accounting on Amazon

Data-filled reports for decision making

Once you begin your business accounting, you can get plenty of reports that will help you create strategies and make decisions.

  • Income statement report: This report will straightforwardly show you your business gains and losses. 
  • Balance Sheet: This one will list your assets and liabilities. 
  • Trends: A deep dive into the inventory report you will get will show you details, such as the best-selling products, which can help you decide where to invest more to get more sales. 
  • Inventory monitoring: As your products move from the Amazon warehouse to your customers, you need to decide on replenishing your stocks. Your inventory data will allow you to decide which products to replenish more or discontinue restocking because of low sales. 
  • Cash Flow Forecast: The excellent characteristic of these reports is that they can be stored, so you’ll have a resource of historical data to see the progress of your business. With the past and present data, you can also simulate financial business moves to see whether a plan will make your business profitable or not. 

Address red flags immediately

Your business will only grow and move forward if you manage your money well. Part of proper financial management is knowing the factors that hurt your business right away and enacting ways to stop the issues to avoid further damage. It is even better to inhibit these problems from happening by planning proactively.

Common problems:

  • Cash flow: A typical cash flow mismanagement is not monitoring the money from sales and comes out to pay suppliers and other dues. This challenging situation can snowball into more challenges in your finances. 
  • Payment to supplier and loans: Late or non-payment of your dues results from cash flow mismanagement. If you fail to do this, authorities can halt your business operations, and stocks won’t come in. Interests from loans may also pile up.
  • Payroll: If you have employees relying on you, the inability to do accounting properly can also affect their timely acquisition of salaries. 
  • Taxes: You’ll be in massive trouble if you do not pay your taxes. Taxation is among the first costs you should be considering. Still, if you cram only weeks before tax-paying day, it can mess up your financial status, or you could be late in paying your taxes, which can also result in penalties.

Your business moves are tied with your financial capability

Now that you have in-house accountants or a third-party agency offering Amazon seller accounting services, you can be at peace. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business’ current status and manage your growth. 

With that, you’ll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to assure their quality and increase sales. All these steps are done with coherence to the financial status of your business. 

Some strategies that company executives and accountants use are the Profit First Framework and the Traditional Accounting

  • Profit First Framework: This formula goes like this: sales minus the profit equals the expenses. If you are increasing your profit, you should always prioritize putting it aside and spending what is left for your expenses. 
  • Traditional Accounting: On the other hand, you can also go traditional and use this formula: sales minus the expenses equals the profit. 

Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end. 

5 Sure Steps To Begin Amazon Accounting

  1. Begin accounting early

When is an early time? Honestly, it would be best if you start accounting the moment you start your business. Typical mistake sellers make is minding accounting only during tax season. Monitoring your assets and liabilities should be done immediately. 

The tasks you’ll need to accomplish initially never ends, but fulfill first what ensures your business survival and success-- accounting. 

Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best if you delegate this task to specialists. All these details are best accomplished and planned together with your store and product launch planning. 

  1. Register for business taxation right away

Whether it’s an online or physical store, when you open a business, you should register your business for necessary permits and, most especially, for taxation. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not register. Doing this is just delaying and increasing the hassle. Your business will be at risk of getting fines for not paying on time or at all. 

Defining how much tax you need to pay also ensures that you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact if you are using this. 

  1. Delegate the accounting tasks to experts

If you are a trained accountant with experience in handling Amazon Seller Central accounting, then you can handle the accounting of your business. However, if you do not have a background in this area, it is better to delegate it to experts. 

  • Hire in-house accountants: The advantage of having your accountant in your team is that these accountants know the details about your business as they experience it firsthand. Their insights will be more in-depth as well. 
  • Partner with an agency: There are already agencies offering Amazon and eCommerce accounting. Delegating it to a third-party agency lifts the load of managing another team in your company. However, you need to explain in detail how your business works so these accountants know what they are dealing with. 
  1. Have regular accounting reports

Your weekly, monthly, quarterly, and year-end reviews should always have accounting reports. As the business owner, you will decide how you want the accounting reports to look like, what reports you want to get, and how often you’ll get the reports. Here are some samples:

ReportDetails You Can include
Cash Flow Management Reportquick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding
Profit and Loss Reportgross profit margin, opex ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit
Financial Performance Reportbalance sheet, assets return, working capital ratio, equity return, debt-equity ratio
Financial Key Performance Indicators Reportcurrent working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital
Financial statementrevenue, gross profit, Earning Before Interest and tax (EBIT), operating expenses, net income, Economic Value Added (EVA), berry ratio, employee satisfaction, customer satisfaction

All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, these reports’ inclusions are not fixed, which means they can change depending on what value your company prioritizes. Hence, it is important to see those details in the report. 

  1. Automate everything

If you have an automated system, all these reports can be checked anytime— and even daily— to acquire the data. Excel works and automation can also be acquired using this system. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.

Here are the benefits of using a software:

  • Reports on Amazon KPIs
  • Reports are available even on mobile
  • Allows integration not only on Amazon but in other eCommerce platforms

Many software allow a free trial, but most work on paid plans. Your investment is worth it with the insights you’ll get automatically. 

Top Accounting Softwares To Use

You can choose numerous software to assist you with Amazon accounting, but here are the top five we can recommend. 

  • Fetcher

If you are only looking into accounting for Amazon FBA, you’ll get more than that with Fetcher. This software will generate reports related to your PPC campaigns, refund tracking, and more reports that could give you visuals and an idea of your business’s status. The order coverage it offers depends on the plan you will avail of. 

  • Xero

Another popular choice of accountants and small business owners is the software Xero. You can enjoy the functions of this tool at zero cost. It also provides basic reports like cash flow, inventory, expense claims, and more. 

  • Taxomate

As the name of this software suggests, it will be the tool that can assist you with all your tax reports. It would be best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate. 

  • GoDaddy

GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can check your sales, balances, profit, and loss, and create invoices for your Amazon, Etsy, eBay, and PayPal accounts through this software. 

  • A2X

Another software you’ll often hear in the Amazon accounting world is A2X, which should be combined with QuickBooks, Amazon, Shopify, or Zero to maximize its accounting capabilities. Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X. 

What’s next?

Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action. Begin your business if you haven’t started one. Suppose you are still relying on excel sheets. In that case, this is the time to level your processes and reporting by moving to automated reports from software. 

You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We’d love to discuss how we can help you with Amazon accounting. Contact Unloop now.

Read more

As a business owner, how many times have you searched "bookkeeping services near me" on the internet? You probably spend an awful amount of time trying to keep track of your financial transactions. Bookkeeping is so crucial that you consider getting a bookkeeping firm to track your finances. 

From the time you collect your first dollar, bookkeepers look after the recording and organizing of your financial transactions. But they do not just record your payable and receivables; bookkeeping ensures the success of your business.

Bookkeeping is the process of recording each transaction made by a business from its start until its closure. A bookkeeper records transactions based on documentation such as a receipt, an invoice, or a purchase order. They could record in a journal by hand or by using a spreadsheet tool like Microsoft Excel. 

The preliminary step of the whole accounting procedure is bookkeeping. Bookkeepers document each financial transaction and record it in the accounting journal. They classify each transaction into debit or credit and summarize the data according to account. 

The accountants then analyze and interpret the data collected by the bookkeepers. From there, they plan a report to give you an idea of how your business is performing. Accountants also generate year-end reports that adhere to the Financial Accounting Standards Board

A bookkeeper sees to it that the financial data is accurate while the accountant prepares the annual reports. These reports help you and other stakeholders make the best possible business decision. 

It takes a tremendous amount of time and effort to maintain bookkeeping records. While small businesses may adopt a simple system to record their transactions, a complex business may get a more meticulous system. To help businesses thrive, bookkeeping firms offer extensive accounting and bookkeeping services

What you need to know about bookkeeping firms

Bookkeeping firms are a full-pledge team that has the expertise and credentials you can rely on. It is not simply finding someone who knows how to use a calculator and accounting software. They offer a wide array of services that would benefit your business so that you could focus on its core operations. 

In addition, bookkeeping firms use accounting software to create data that is suitable for your business needs. They maintain the accuracy and integrity of the accounting records and issue regular reports to highlight issues that you need to address. 

Sounds simple? Bookkeeping firm offers more than the essential bookkeeping functions. Furthermore, they can oversee your payroll, adjust sales taxes as well as quarterly and withholding taxes, and deal with deposits and reconcile bank statements. 

To delve deeper into the functions of bookkeeping firms, here is an insight into the services they offer.

Data Entry

Data entry is the recording of financial transactions, the primary function of bookkeeping. Bookkeepers must maintain an accurate record of every transaction that goes in and out of your business. It allows you to focus on your core operations and let the bookkeeping firm take care of the rest. 

Payroll

You can also let bookkeeping firms oversee payroll management. Bookkeepers can calculate your employees' salaries and adjust their deductions. It ensures that you pay your employees their net salaries on the desired date and guarantees employee satisfaction and compliance with timely salaries. It also means you always follow legal requirements and regulations. Payroll and bookkeeping services are synonymous with one another and go in concert. 

Taxes

For small businesses, taxes can be pretty puzzling. Bookkeeping firms ensure that you are not losing money by paying too much tax and not get you in trouble by paying too little. They make sure you follow deadlines and rules, making filing your taxes simple. Bookkeepers keep a tax-ready financial statement that saves you money and maximizes tax deductions. 

Bank Reconciliation

Bookkeeping firms make sure your financial records match your bank statements. It is to figure out any discrepancies and address any data entry errors or overlooked transactions. Bank Reconciliation ensures that the money your business makes is all accounted for and goes to the proper channels.

Monthly Financial Reports

As a business owner, you must know where the money is going or making any. Bookkeeping firms create a monthly financial report to track how your business performs. These reports show if your business is making profits or having enough funds to meet your daily expenses. Monthly financial reports give you an in-depth look at your finances so that you can make informed business decisions.

Bookkeeping firms also offer specialized reports that would help you analyze your business in a much better way. These reports can determine your most profitable client or employee expenditure. These specialized reports add even more value when you get a bookkeeping firm to oversee your finances.

One of the best ways to ensure your success is to hire a bookkeeper as soon as you start your business. Hire a bookkeeper you can count on that has the expertise and outstanding credentials. Bookkeeping firms are the simplest way to secure reliable and balanced bookkeeping services. 

The Takeaways

Bookkeeping firms impose a consistent process that strengthens your business. They encourage uniformity in tracking your financial transactions and reporting. It is critical in preventing you from taking a dangerous risk. 

Bookkeeping firms are meticulous in maintaining books to avoid mistakes and penalties. It reduces your expenses and notifies you of any negligence in your business. You no longer have to perform these tasks yourself, saving you time. You can now direct your attention to operating your business.

There are virtual bookkeeping firms online that offer the same services as conventional firms. You can hire a whole bookkeeping staff without having to create an in-house department. They can give you the upper hand to succeed no matter where you are. Whether you are looking for an SME or property management bookkeeping services, there is a virtual firm to cater to your needs.

Likewise, you gave everything you can for your business to succeed. You worked for long hours to make a sale and generate profit. You hire competent people and dedicate a space to make sure everything goes smoothly. Now, it is time to take your business to astonishing new heights and secure its success by hiring a bookkeeping firm. Maximize your business income and cut your financial risk— hire a bookkeeping firm today. Contact Unloop to get more information.

Everything You Need to Know About Bookkeeping Firms Made Simple
Watch Now

As a business owner, how many times have you searched "bookkeeping services near me" on the internet? You probably spend an awful amount of time trying to keep track of your financial transactions. Bookkeeping is so crucial that you consider getting a bookkeeping firm to track your finances. 

From the time you collect your first dollar, bookkeepers look after the recording and organizing of your financial transactions. But they do not just record your payable and receivables; bookkeeping ensures the success of your business.

Bookkeeping is the process of recording each transaction made by a business from its start until its closure. A bookkeeper records transactions based on documentation such as a receipt, an invoice, or a purchase order. They could record in a journal by hand or by using a spreadsheet tool like Microsoft Excel. 

The preliminary step of the whole accounting procedure is bookkeeping. Bookkeepers document each financial transaction and record it in the accounting journal. They classify each transaction into debit or credit and summarize the data according to account. 

The accountants then analyze and interpret the data collected by the bookkeepers. From there, they plan a report to give you an idea of how your business is performing. Accountants also generate year-end reports that adhere to the Financial Accounting Standards Board

A bookkeeper sees to it that the financial data is accurate while the accountant prepares the annual reports. These reports help you and other stakeholders make the best possible business decision. 

It takes a tremendous amount of time and effort to maintain bookkeeping records. While small businesses may adopt a simple system to record their transactions, a complex business may get a more meticulous system. To help businesses thrive, bookkeeping firms offer extensive accounting and bookkeeping services

What you need to know about bookkeeping firms

Bookkeeping firms are a full-pledge team that has the expertise and credentials you can rely on. It is not simply finding someone who knows how to use a calculator and accounting software. They offer a wide array of services that would benefit your business so that you could focus on its core operations. 

In addition, bookkeeping firms use accounting software to create data that is suitable for your business needs. They maintain the accuracy and integrity of the accounting records and issue regular reports to highlight issues that you need to address. 

Sounds simple? Bookkeeping firm offers more than the essential bookkeeping functions. Furthermore, they can oversee your payroll, adjust sales taxes as well as quarterly and withholding taxes, and deal with deposits and reconcile bank statements. 

To delve deeper into the functions of bookkeeping firms, here is an insight into the services they offer.

Data Entry

Data entry is the recording of financial transactions, the primary function of bookkeeping. Bookkeepers must maintain an accurate record of every transaction that goes in and out of your business. It allows you to focus on your core operations and let the bookkeeping firm take care of the rest. 

Payroll

You can also let bookkeeping firms oversee payroll management. Bookkeepers can calculate your employees' salaries and adjust their deductions. It ensures that you pay your employees their net salaries on the desired date and guarantees employee satisfaction and compliance with timely salaries. It also means you always follow legal requirements and regulations. Payroll and bookkeeping services are synonymous with one another and go in concert. 

Taxes

For small businesses, taxes can be pretty puzzling. Bookkeeping firms ensure that you are not losing money by paying too much tax and not get you in trouble by paying too little. They make sure you follow deadlines and rules, making filing your taxes simple. Bookkeepers keep a tax-ready financial statement that saves you money and maximizes tax deductions. 

Bank Reconciliation

Bookkeeping firms make sure your financial records match your bank statements. It is to figure out any discrepancies and address any data entry errors or overlooked transactions. Bank Reconciliation ensures that the money your business makes is all accounted for and goes to the proper channels.

Monthly Financial Reports

As a business owner, you must know where the money is going or making any. Bookkeeping firms create a monthly financial report to track how your business performs. These reports show if your business is making profits or having enough funds to meet your daily expenses. Monthly financial reports give you an in-depth look at your finances so that you can make informed business decisions.

Bookkeeping firms also offer specialized reports that would help you analyze your business in a much better way. These reports can determine your most profitable client or employee expenditure. These specialized reports add even more value when you get a bookkeeping firm to oversee your finances.

One of the best ways to ensure your success is to hire a bookkeeper as soon as you start your business. Hire a bookkeeper you can count on that has the expertise and outstanding credentials. Bookkeeping firms are the simplest way to secure reliable and balanced bookkeeping services. 

The Takeaways

Bookkeeping firms impose a consistent process that strengthens your business. They encourage uniformity in tracking your financial transactions and reporting. It is critical in preventing you from taking a dangerous risk. 

Bookkeeping firms are meticulous in maintaining books to avoid mistakes and penalties. It reduces your expenses and notifies you of any negligence in your business. You no longer have to perform these tasks yourself, saving you time. You can now direct your attention to operating your business.

There are virtual bookkeeping firms online that offer the same services as conventional firms. You can hire a whole bookkeeping staff without having to create an in-house department. They can give you the upper hand to succeed no matter where you are. Whether you are looking for an SME or property management bookkeeping services, there is a virtual firm to cater to your needs.

Likewise, you gave everything you can for your business to succeed. You worked for long hours to make a sale and generate profit. You hire competent people and dedicate a space to make sure everything goes smoothly. Now, it is time to take your business to astonishing new heights and secure its success by hiring a bookkeeping firm. Maximize your business income and cut your financial risk— hire a bookkeeping firm today. Contact Unloop to get more information.

Read more

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About unloop

Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.

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