9 Secrets of Bookkeeping Services No One Told You

by aotax | Mar 14, 2022 | Book keeping

Bookkeeping entails more than just keeping track of your company’s finances. It enables you to understand where you stand as an entrepreneur and to plan for your company’s future growth. It also informs investors about your company’s financial health, attracting more investment. It even aids you in tax audits and protects you from the IRS.

If you are an Indian who owns a business in the US, having a good bookkeeping service is a great idea. We reveal the secrets that will transform the way you think about bookkeeping. If you are still debating hiring bookkeeping services near you, then read on to know why you should go for it.

What Exactly is Bookkeeping?

Bookkeeping is a part of financial management that aids in the development of a company’s growth strategy. Simply described, it is an accounting tool used to keep track of a company’s financial records. These books record every dollar related to your firm, including cash flow, costs, salaries, sales tax, and so on. It’s a must-have survival tool for any company looking to expand.

Components of Bookkeeping

Bookkeeping is more than keeping a record of your business income and expenditure. It also takes care of your cash record, inventory, assets record, profit and loss accounts, payroll, sale invoice, revenue, and other financial transactions. This data is in the form of a financial statement.

9 Reasons that will Alter your Perception of Bookkeeping Services

If you’ve just launched a small business and think you can get away with skipping bookkeeping for a few months, you’re in for a rude shock. The longer you wait to hire a bookkeeper, the more confusion you’ll create for yourself and your business. You’ll need a professional bookkeeper to maintain proper books of accounts to function smoothly. They will not only keep track of your cash register but will also update you about your company’s financial health. In addition, a qualified bookkeeper will assist you with financial statements, IRS audits, and tax benefits, among other things. Here are a few ways in which bookkeeping helps businesses succeed that will get you looking for bookkeeping services near you right away.

1) Budget

A sound budget is a foundation for a successful business. Bookkeeping helps you manage your budget by monitoring the income and expenses. You may be left clueless about your cash reserves if you don’t keep adequate records, risking the chance of outrun or higher cash burn rate. Bookkeeping allows you to calculate your earnings and expenses, assets and liabilities, and plan for future business growth.

2) Tax-Compliance

Having a good bookkeeping system in place makes it easier to stay on top of your taxes. During tax season, one does not have to look for receipts or papers because all the financial data is already documented. Hiring a bookkeeper near you to keep the IRS away saves you a lot of time. And in case the IRS comes knocking, the bookkeeper can also assist with the financial audit.

3) Organization

Bookkeeping aids you in being organized and systematic in your business. Every dime that comes in and goes out of your company is tracked and documented. As a result, you may confront any IRS audit with confidence because all financial data is easily available. Furthermore, you can quickly offer your investors and lenders the data to obtain more loans and credits.

4) Analysis

Bookkeeping assists you in conducting a thorough analysis of your business. The cash influx and outflow and its impact on business growth are detailed in the financial statements that are generated regularly. By examining the data, you can determine which company strategies are profitable and which should be abandoned. It allows you to make specific tweaks that will help your company flourish.

5) Planning

Your business’s well-documented financial records assist you in planning for future expansion. Bookkeeping also aids in tax planning by allowing you to take advantage of specific tax incentives. For example, you can claim meal deductions for business luncheons on your ITR.

6) Bill and Other Payments

Keeping track of your bills, loans, taxes, and rent payments are excellent bookkeeping practices. You save time and money by settling these on time instead of paying penalties or late fees.

7) Goal-Setting

Bookkeeping can assist you in achieving professional objectives. It allows you to develop financial plans and forecasts for your company’s growth by presenting financial data at your fingertips.

8) Cash Flow Management

It not only allows you to manage but also boosts your cash flow. Bookkeeping assists you in keeping track of consumer and vendor invoices. You can request early payment from your consumers and pay the vendor on or near the due date. This would free up additional cash for you to invest in your company.

9) Peace of Mind

If you practice effective bookkeeping, your financial records will be well-organized. You don’t have to be concerned about dealing with banks, investors, or the Internal Revenue Service. You are at ease and can concentrate on growing your business.

Thus, having a bookkeeper serves you at multiple levels. It keeps you organized, safe from the IRS, helps you move towards your goals, and lets you control your finances. It takes care of your financial worries so that you can focus your energy on business expansion. In a nutshell, a bookkeeper and accountant are what you need to make your business a success.

If you are an Indian business owner working in the United States looking for bookkeeping services near you, contact AOTAX today. Our team of skilled bookkeepers will help you get your financial books on track. We have over 15 years of experience in the relevant field and have helped over 2 lac Indian professionals and businesses get their books and taxes in order.

5 Reasons why you should Outsource your Book Keeping and Payroll

by Mounica Kota | Mar 11, 2019 | Book keeping, payroll, tax deductions, Tax Preparation

5 Reasons why you should OUTSOURCE your Book Keeping and Payroll

For any successful business, it doesn’t take a lot of time to understand and realize that accurate financial records is of paramount importance. And book Keeping isn’t all that easy or straight forward. It requires a good amount of proper skills and a lot of time.

The lack of proper bookkeeping, your business might be prone to a lot of risks, inconsistency in business, might result in falling revenues and so on. You might even run into the risk of internal fraud. Thus, outsourcing your bookkeeping and payroll might be the best possible solution.

Here are some prominent reasons why you should consider it.

Save Time

A company’s management team usually has a lot of tasks on their hand. On top of that, adding the pressure of bookkeeping is not advisable.

Bookkeeping can add a lot of unwanted pressure and leave less time for management to work on important issues.
Outsourcing will help your company to clean up all that time so that you can utilize the time in more prudent issues and concerns or focus on growth.

Reduce Costs

When you opt for outsourcing your bookkeeping and payroll, cost reduction is one of the significant benefits.

In the initial days, it might look like it is increasing the cost but in the long run, it will save a lot of money.
Bookkeepers are usually experts and have a lot of knowledge when it comes to tax regulations.
Along with services that eliminate the chances of errors you will also benefit from better tax cuts and benefits.
Also, you will end up saving money in terms of hiring full-time resources, dedicated office space etc.

Better Tax Management

Bookkeepers are experts in their fields. It should not come as a surprise that they have a lot of grasp on taxation laws and regulations.

Hiring them would ensure that you get most of the exemptions and deductions.
Thereby enabling you to save more money.
Another benefit is error-free tax filing for your company.

Consultation

One of the major benefits of outsourcing your bookkeeping and payroll management is better budgeting.

Outsourcing to experts also beings in better forecasting for the future.
Unlike internal employees, outsourcing firms will provide you with unbiased reports and opinions in fields like future success, financial analysis, taxation, stability of business and so on.
Outsourcing companies might also offer advice and strategic plansto further improve the business.
More importantly, book keepers ensure that creditors and vendors are paid on time, which elevates your position in the market.

Better Technology

Having access to the latest technology in book keeping and payroll can be an expensive affair for small scale or medium scale companies.

Taking the help of outsourcing will help you have access to the latest technology.
It includes better software/database, enhanced procedures, latest operational changes, best practices and so on.
And of course, the security levels on offer are quite high along with sufficient privacy and backups for the worst-case scenario.

There are a lot of perks of outsourcing your book keeping and payroll. This can come in handy if you are a growing business entity. After a certain threshold, it will be a bit more difficult to handle all the payments, receipts, settlements, vendors, creditors, maintain records of all and so on.

Outsourcing is a seamless and hassle-free way of handling such situations with breeze and needless to say, the entire endeavor is cost-effective as well. If you haven’t already, consider outsourcing your book keeping and payroll management.