"Who needs a bookkeeper with those easy-to-use, do-everything, no-brainer business bookkeeping software programs I got with my fancy new computer?"
I must tip my hat to the software marketers! They have done a phenomenal job of selling the idea that you don't need to know anything about
accounting to do good accounting.
Well, to a degree, they are correct. But, because the life blood of a business, its management information, flows through the accounting system, saving money by not having a properly qualified bookkeeper
could actually increase your costs through mis-classified expenses being
corrected at or after tax time.
There are some inherent limitations in the off-the-shelf one-size-fits-all small business accounting software packages.
First, an accounting software package cannot tell you how to categorize all of your business transactions.
For example; trading in a depreciated piece of equipment for new equipment creates some very special book entries.
Entries that most of this type of accounting software simply cannot handle without help. The result, your CPA will need to research and
correct the problems in order to prepare your tax returns.
Another example; payroll commonly cycles every two weeks. Your trusted bookkeeper will have the knowledge to process
this event, perform calculations for withholding, employer liabilities, e-file and e-deposit with little involvement from the
executive offices. Even if you decide to continue without a bookkeeper, be sure to contact a payroll service provider in
order to handle all the necessary payroll tax functions on time, every time.
As a business owner where is your time best spent? If you are able to generate sales of several hundred dollars an hour in your business, does it make sense that your time is spent fooling with accounting software? Probably not.
What do you generate for the business compared to what you might pay the best qualified bookkeeper
for your field? Be careful not to be penny-wise and pound foolish.
If your banker, CPA, attorney, or worse yet, IRS auditor asks about your accounting records will you have the correct answers? And, will you have those answers in a timely fashion? br />
If you're paying your CPA $250 an hour to clean up bookkeeping you're losing in a big way.
Do you know how assets, liabilities, equity and other accounting items interact and affect your operating results?
The bottom line - be sure that you invest your resources in the areas that will give you the best return on your investment.
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http://www.bookkeeperlist.com/bookkeepers.shtml
Diligent bookkeepers keep their eyes on all avenues of potential clients. They will be aware of craigslist.org, monster.com,
the local employment department and AIPB. These are all potential locations from which to begin seeking a qualified candidate. Beyond
these locations, there are the usual methods such as running a query on google, bing,
ask, and yahoo. Try a phrase similar to bookkeeper [insert city here], or a combination including "qualified bookkeeper in [city]."
The pricing of qualified bookkeeping services from an independent qualified bookkeeper varies from $40.00 to $95.00 depending on
their experience, offerings, size of their current client base and the demand for their expertise.
Good luck and I hope whom you find, surpasses your expectations.
The State of Washington has a full set of taxes in order to get the most out of our state's supporting businesses.
The largest one is the State Combined Excise tax, which is paid monthly, quarterly or annually based on gross receipts.
The Department of Revenue combines Sales Tax collections with an additional tax for Business & Occupation.
Combined, these two are taxes for retail sales, services involving personal property, and service sales that are not normally
taxed by sales tax. This last one is our B&O portion of the excise taxes. The key to excise tax is to remember this is applied
to your total receipts irregardless whether a profit is realized. The state mentions on the website that some activities involve
the B&O tax even when there is no charge for the service.
Be sure to involve your trusted bookkeeper,
business consultant or CPA when considering the minmum mark up on retail products and services.
Technology has advanced to a point that in-person meetings are largely obsolete. We can always meet on Skype, my preferred software and discuss any pending situation by video or audio. We can share reports and files while conversing very similar to the manner in which we meet at the conference room.
Through remote access technology and backup files, we can tailor your bookkeeping operation. Since it is difficult for you to verify work hours , we can optionally change to an accomplishment-fee based system, eliminate 80% of our travel time and mileage fees and concentrate on the actual work at hand; keeping your accounting up to date.
We commonly work with local businesses, our visits to your
office can be reduced to only one per week instead of 2-5 per
week. We always produce your financial statements each month and
have our work audited to ensure accuracy. You are still in charge
and gain knowledge of your company's financial health!
Credit card charges are commonly posted by your bookkeeper in appropriate expense accounts. In order to properly prove the business expense, the burden of proof falls to the tax payer who must show that the charge was a business expense by meeting guidelines set by the IRS. These may be common questions: What was purchased? How much did it cost? How was it used in your business? Did you pay it?
Note: It is best to speak with your tax professional before taking our word as written above. Also check with your bookkeeper regarding record keeping services to ensure your receipts are properly preserved. Thermal image paper lasts about 90 days unless special care is taken.
