Top Characteristics of Professional Bookkeeping Services
As a small business owner, you understand how essential it is to prioritize the organization and accuracy of your finances. Knowing where your money goes, more importantly where it comes from, gives you peace of mind that your business's books are in order. Professional bookkeeping services can be great solutions for smaller companies that do not have accounting departments - but with so many providers on the market today it can be confusing to determine which features are most important when selecting one for your company. To ease this process, here’s an overview of the top characteristics to look at when choosing a professional bookkeeping service.
Accuracy of Recording
Accuracy is an essential requirement for any professional bookkeeper. A reliable bookkeeping service must be able to track and record financial transactions with precision while also implementing established protocols and procedures to ensure the accuracy of all entries. A bookkeeper must maintain records that are up-to-date, understandable, and easily verifiable.
Additionally, they should take extra steps to ensure accuracy in all documents such as reconciling bank statements, correcting mistakes promptly when detected, etc. By taking these measures, bookkeepers can guarantee the accurate recording of financial information which is paramount to producing accurate financial documents to review. If you need someone for more industry-specific requirements such as specialized tax codes or regulations, you might be better served by seeking out a certified public accountant (CPA).
Detailed Record-Keeping
A bookkeeper's goal is to make sure that each transaction is recorded properly. Detailed financial records are essential for making informed business decisions. At Elevate, our bookkeepers strive to ensure the process is followed and every transaction is recorded the same way so it leaves little room for error. This includes recording the vendor or customer, the date of purchase/sale, the amount paid, payment method, the purpose of the purchase/sale, and any other relevant details.
Having detailed records makes it easier for a business to track its income and expenses, analyze profitability trends over time, determine what products or services are driving sales, and develop strategies for future financial planning. Additionally, having more detail in the system allows businesses to identify discrepancies quickly and address them immediately before they become bigger issues. Ultimately, having thorough financial records gives a business the ability to confidently move forward with its goals.
Cost Transparency & Flexibility
Cost transparency is important to businesses, as it ensures that everyone involved knows exactly what they are getting. Many bookkeepers specialize in a certain niche and structure their pricing accordingly, offering packages tailored to the specific needs of their clients in that particular field. Other bookkeepers come up with prices that factor in the size of the company and the complexity of the tasks at hand. The benefit of this approach is that clients have more options when deciding which services best suit their budgets.
Investing in a reliable bookkeeper can make all the difference for a business, so you need to be able to make informed decisions that reflect both value and price. Elevate Bookkeepers strive to create an open dialogue with clients about pricing so that everyone involved has peace of mind when it comes to cost transparency. You can trust that they are paying fair prices for quality services while also having enough information on hand to make sound financial decisions going forward. And when you are ready to scale, you already have a good idea of the prices you will hit at the next level.
Technology Infrastructure
Accurate bookkeeping requires the correct technology to be in place, and there are several options available. To begin with, Excel spreadsheets can be used for basic tracking of income and expenses. From here, you can easily track any changes or make adjustments to the data as needed.
For more sophisticated financial tracking and reporting needs, users can move on from basic spreadsheet programs to accounting software such as Quickbooks. Quickbooks is an industry leader for small businesses, providing many features that are essential for accurate bookkeeping such as invoicing, budgeting, collection management, payroll processing, and more. This program offers a robust set of features including detailed reporting capabilities that aid users in understanding their financial standing and making informed decisions about their business’s future. Ultimately the choice depends on the user's individual needs but having the correct technology in place is essential for achieving optimal results.
Despite the challenges that come with running a small business, knowing where your money comes from and goes should be a priority. Professional bookkeeping services can help take this weight off of your shoulders - but it is important to look for providers that offer certain key features. If you're ready to take the next step in securing professional bookkeeping services for your company, reach out to Elevate today. We would be happy to discuss how we can meet (and exceed) your needs.