Epoch Bookkeeping

Bookkeeping Online... with YOU in Mind

FAQs on Outsourcing Your Bookkeeping

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One of the most common questions business owners want to know is if they will loose control of their bookkeeping if they decide to outsource it. If you have a good, conscientious bookkeeper, the answer to that question is NO. The business owner should have 100% control of all the financial decisions including the signing of the checks. If your bookkeeper is signing your checks, they have too much power over your accounts. As far as what vendors get paid and when, this is also your decision to make. The bookkeeper can definitely help provide necessary information and perform specific tasks, but the final approval of all invoices for payment and the signing of all checks should be done by you, the business owner.

Then next question is who services your account. The person you have chosen as your bookkeeper would be the one servicing your account. This person should become an expert in your business’s unique processes. Responsibilities for the day-to-day servicing of you accounts would also be completed by the bookkeeper. This helps you free up some time to focus on growing your business.

What about the cost of outsourcing? Is it more expensive than having an in-house bookkeeper? Actually, outsourcing is normally cheaper than paying someone to come into the office and do the books. Generally, there is a monthly fee for services that are offered. There is not a need to have an office space for them, and you won’t have to worry about providing some kind of benefits package. You might have to pay a little more upfront if there is a mess to clean up, but after that the charges will be significantly less than hiring someone either full or part-time.

Does a bookkeeper replace your CPA? No!!! Your bookkeeper should, if they are good, be working along with your CPA. This should be a healthy, thriving relationship. If they work well together, then come tax season, your IRS filings should run smoothly like a well-oiled machine.

Then the last question: who has access to my books? You determine who has access to your books and what level of access they have. No one will have access to your data without your company’s express permission.

In summary, you should have total control over all financial decisions and money. You also decide who has access to your accounts and what level of access each person has. The bookkeeper should be keeping your accounts up to date and supplying you with important financial information on a regular basis. That person should also be working along side your CPA to help tax season run smoothly. All of this can be completed as a virtual service that is cost effective.

Bambi Samares

Epoch Bookkeeping

E:mail: [email protected]

 

 

Categorizing Expenses

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One area of bookkeeping that is very trivial, yet, at the same time, is also very important is the accuracy of tracking income and expenses.  This involves a lot of tedious, sometimes time consuming effort on the part of the business owner.  Keeping track of all those little receipts can be a hassle.  If you want to keep an accurate measure of the profitability of the business, then it is necessary to keep up with all of this.  I would highly recommend using an application like shoeboxed to help keep up with receipts.

One way to keep track of everything is to make sure you have a good chart of accounts. These are easy to create in your bookkeeping application programs.  Once your chart of accounts is created, then you can export it to Excel, print it out or save it in a file where it will be easily accessible.  If the bookkeeping application’s chart of accounts cannot be tailored to meet your company’s needs, then it is easy to create you own in Excel and import it in.  The image I imported is very blurry, but it is a chart of accounts that I exported from Quickbooks into Excel. This process is very simple and easy to do.

Once you have everything categorized properly, then it is time to start thinking about tax reimbursements.  There is a website that is amazing when it comes to knowing what is tax deductible and what isn’t, and what kind of documentation you need to keep around for IRS purposes. http://taxreceipts.com/tax-guide/  Please check this out.  There is a ton of helpful information here.

A good bookkeeper will be beneficial in keeping records categorized correctly, keeping everything organized in an easy to find place, and saving you time and money.

 Bambi Samares                                                                                         Epoch Bookkeeping        

[email protected]                                                                          936-697-5412

Why hire an online bookkeeper?

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In casual conversations with business owners, I have heard a few mention the headaches they have in the realm of bookkeeping.  This article will discuss some of the issues and how hiring an online bookkeeper can meet the needs of you, the business owner.

  1.  Time:  The first complaint is in the time it takes to do the day to day bookkeeping.  Many of the people I have spoken to say that the “paperwork” is not completed until after the business has closed down for the day.  This means that instead of going home to families or going out and enjoying the evening there is still work to be done.  An online bookkeeper would be able to complete all this work for you giving you more time to spend on the things and people you love, or even give you more time to focus on growing your business.
  2. Money:  One of the issues in hiring a bookkeeper is that it costs money.  Yes, it does, but hiring an online bookkeeper is not as costly as hiring a part-time or full-time employee.  With online services you pay only for what you need and not anything in excess.  Also, there is no need for extra space or equipment to bring in since everything is completed online.
  3. Expertise:  You are an expert in your business, but maybe not an expert in bookkeeping.  It is easy as an entrepreneur to get into the DIY routine.  This is good, except that there are some things that are better left to the expert.  Bookkeeping is one of them.
  4. Organization:  There have been a few business owners that have stated they basically have their bookkeeping in a shoe box.   The online world provides ways of organizing your data into files that are easily accessible from anywhere.  This is a much better system.  Please do not get the idea that paper copies are not necessary and throw them away.  Let your online bookkeeper help you come up with a filing system that works for both of you.
  5. Meet Deadlines:  These can be in the form of paying bills in a timely manner or collecting on unpaid invoices. Both of these affect your cash flow.  Then there is also the issue of taxes i.e. sales tax, payroll tax, and income tax.  An online bookkeeper can help keep your business up to date on all these items as well, and help prepare the information that needs to go to the CPA when processing income tax each quarter/year.

Certified in quickbooks and Xero

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