Accounting or Bookkeeping for Startups presupposes to keep your accurate records of financial transactions and evaluate your finances to check for growth and improvement of your business. Start-ups face a lot of challenges when they enter the business world. All start-up business organizations need to build a strong foundation to stay organized, control expenses, increase efficiency, and identify possible risks for the business organization.
Before we move ahead to learn about online bookkeeping services for small business it’s important to understand why accounting services for startups is essential for business organization.
List of the reason to Understand why accounting services is important for small business organization.
The success of any business organization depends on efficient budget management, book balancing, and modifying financial strategies when required. As the owner of any business organization, the ultimate goal is to sell your goods and services with the best income and expenses. Keeping a track of your income and expenses helps in maintaining the growth stability of the business organization.
- A good accounting process helps to keep a track of your business finance where it stands and how it’s performing in the market.
- You will be able to get your past activity and where you currently stand in order to plan for future activities.
- Accounting services are also used to share the organization’s strengths and weaknesses with the employees.
- You can analyze your business competitor and can evaluate future investment opportunities.
- Timely preparation of your financial results.
- Better tracking of growth and a proper audit of reports.
- Helps in raising funds from investors.
- Collect money due to your business.
Below is the list of Bookkeeping services for small business
- Helps in preparing and sending invoices to customers.
- Maintaining records of accounts payable & receivable.
- Prepare tax returns.
- Prepare Employee payrolls.
- Helps in preparing financial and bank statements.
- Daily Booking
- Calculating tax liabilities and filling the tax returns.
Why online bookkeeping services for small businesses is important?
Outsourcing Accounting and Bookkeeping Services helps to save the organization money because keeping an in-house accountant is a bit expensive. It is time and cost-effective. While using online bookkeeping services there is no personal bias is involved. You can easily access bookkeeping services online.
Difference between Bookkeepers and Accountants
Before hiring a bookkeeper or Accountant, you should the difference between the two.
Bookkeeper- A Bookkeeper will keep track of and maintain your day-to-day transactions in your bookkeeping software. They also provide you with financial reports and invoices.
Accountant- An Accountant’s large-scale overview of your company. They evaluate the data given by the bookkeeper. Accountant needs to address the complex data in the finances, liabilities, and other problems.
Benefits of Bookkeeping service for small business
Any business organization takes time in managing financial data and that’s the reason most business organizations outsource booking and accounting services. A remote bookkeeper or accountant helps the organization in multiple ways.
Below is the list of advantages of Bookkeeping services for small businesses and online accounting services for small businesses.
Cost and Time Effective- Remote bookkeeper offers part-time services which save the cost and time of the start-ups.
Professional Service- You will be dealing with a professional and experienced team as they have an extensive client base.
Organized- An experienced and outsource bookkeeper helps to keep a track of your invoices, billings, payments, and other transactions to ensure that you are collecting money due to you as well as paying your vendors on time.
Accuracy- Accurate data is very important to manage your business activities a bookkeeper provides you with accurate financial data which helps you to reduce inefficient spending, increase the level of your productivity and prepare you for financial growth.
Objective- A remote bookkeeper provides you unbiased perspective and helps you with alternative solutions and options that you may not consider.
Flexible and Efficient- A remote bookkeeper adjusts to your needs and responds to your request quickly and effortlessly. Outsourcing your financial activities allows you to focus on the growth of your business organization.
Top 5 Accounting & Bookkeeping basics which every start-up organization needs to keep track of.
Below are the basics financial items that need to be properly managed.
Reconciling your bank account is very important, when you reconcile your bank statement every month allows you to balance your ledger balance to your bank balance. It helps to find all the possible errors that may go unnoticeable if the bank statements are not maintained properly.
Credit Card Statement
Checking on a Credit card statement is as important as a Bank statement. Always make sure that you have a backup of every amount charged on your credit card especially when you have a company credit card that is used by almost all the employees of the organization.
If you have employees in your business it’s important to keep track of the payroll including managing employee records to retaining employee time records.
It’s important to make an invoice for all the purchases and make sure you are regularly invoicing and following up on it.
Proof of Payment
Always keep proof of the payment with the bill in case the payment goes missing you will always have a backup.
Below is the list of Bookkeeping Basics
Writing Journal Entries
A journal is important to keep a track of all the transactions. The journal entries are made from transactions such as receipts, bills, and invoices.
Examine Business Transactions
The bookkeeping process tracks all business transactions and makes entries to specific accounts. The chart of accounts in the accounting system makes a list of accounts and account categories.
Posting to Ledger Accounts
The data in the journal that appears chronologically is summarized in the ledger. It’s very important to post it regularly in ledger accounts.
To double-check that the journal entries are posted correctly the organization uses a trial balance for a given time period. A trial balance ensures that the debit and credit balances should match in the ledger.
The most important task of a bookkeeper is reconciling the statement to make sure that your financial statements are correct.
Build & Grow your Start-up right away
In the above article, we have discussed the depth of Bookkeeping for startups. We have also discussed the basics of accounting and bookkeeping which every business organization should keep a look at. We hope that by reading the above article you would be easily able to grow your startups in the business market.