Keeping track and monitoring your business finances is a vitally important part of running an effective and successful business. In order to do this, you need systems in place which allow you to separate your business dealings from everything else, and accuracy is the most important factor in all of it.
To help you decide which is the best book-keeping and general accounting option for your business, it’s important that you consider all the options we’re about to discuss. Remember, every business is unique, and that means you need to come up with an equally unique way to manage your finances.
● Regular Bookkeeping - This basically means doing the books yourself. If you have a small business or you’re a very new start up, this is probably the best option. It’s not worth outsourcing your accounting at this stage, and spending a small fortune on a system you don’t need. This is something you can reassess in the future. You could however consider employing the services of an accountant to set you up initially and show you how to keep everything in order for the year.
● Online Bookkeeping - This type of book-keeping allows you to view your accounts and financial information easily, but someone else does the hard work for you. Everything is stored digitally, usually in Cloud storage, and you have access at any time. This means you get the experience of a qualified accountant or bookkeeper, and you also get control too.
● Outsourcing Your Bookkeeping Locally - You don't have to go to a huge company for your bookkeeping needs, it could be that there is a local bookkeeper you can use, and their services are likely to be cheaper. This person would sort out your books and records on a regular basis, but they would only come in when needed, perhaps a day or two per week or month. You may also need to employ an accountant to check everything is correct, but this is something you can review over time.
● An Employed Bookkeeper - If your business is growing, then you could create the position for a bookkeeper within your business. This means you have access to that person during the working week, they can be familiar with every part of your business. This person is also likely to deal with the regular payroll and ordering, basically anything financial.
It’s important to think about every option carefully before making your final decision. You need to think about budget and time first and foremost, but you also need to think about whether this is something you want to learn to do yourself or not. Remember, bookkeeping comes with very strict guidelines and record keeping needs to be very accurate. Failure to do so can come with very dire consequences.
In order to keep your business ticking over, bookkeeping and accounting solutions are something you need to think about very carefully indeed. You also need to make sure that the person you trust with your financial records is extremely experienced, qualified, and that you trust them completely.
Which ever option you end up choosing remember the cost of hiring a professional is cheaper than hiring an amateur. If you disagree with this statement try hiring an amateur and keep us posted!
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- Written by: Jag Bath