What does a bookkeeping service do for your small business?

Bookkeepers are in charge of maintaining your books day in and day out. They generally take care of data entry into the business ledgers and track various other business financial transactions. A good bookkeeper will typically, in short, return an accurate snapshot of the financial transactions of a month. For a small business to grow rapidly, the bookkeepers will maintain accurate and comprehensive financial information. Moreover, with a constant eye on the funds moving in and out of business, bookkeepers ensure no pitfalls, revenue, or cash flows are not being misused. Depending on the payroll and tier of bookkeeping, the bookkeeper can either be full charge or basic. In a complete charge system, the bookkeepers can handle and manage all the company's financial transactions, including payroll. In short, a good bookkeeping service can address all of the company's financial needs and assist the small business to grow faster and remain on the right side of the law.

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Which type of bookkeeping is best for your company?

There are currently three significant types of bookkeeping: single entry, double entry, and virtual. 

 

  1. A single entry system is not comprehensive and is thus best kept aside for businesses having minimal transactions. This system records cash sales and business expenses. Bookkeeping under this cannot be traced and connected to other accounts.
  2. On the other hand, a double-entry system is used for businesses with much more complex transactions. It uses a system of credits and debits, and it ensures other accounts are connected as well. It's a more complex but efficient system.
  3. If a company doesn't want to go through any of this hassle, virtual bookkeeping is the way to go forward. The virtual system takes this entire process online, and even though it does require a systemic software professional, a virtual bookkeeper keeps CPA and maintenance fees down. They accept most of your transactions in a digital form and will email the final reports routinely. This is not to say that traditional offline bookkeeping doesn't have pros; it's always available onsite. Also, data retrieval issues can be a bigger problem in case of a technical failure. Cost is the major concern for traditional bookkeeping due to employed active staff. This creates a higher cost for the company to maintain. Moreover, for small companies with limited office space, providing an effective workspace for the team and the latest software systems and technology can be even more hectic.

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