The benefits and drawbacks of hiring an in-house bookkeeper. Pros of Hiring In-House For larger companies with a high volume of transactions, employing an in-house bookkeeper can be beneficial. If you're handling 2,000 to 3,000 transactions a month, daily management for reporting is crucial. Managers often rely on daily reports instead of weekly or monthly ones. Many businesses assign additional responsibilities to the bookkeeper, making the payroll cost more justifiable. How

The observation I've made in the real world over and over again is the misunderstanding of roles when the word "accounting" is used in addition to the word "accountant". Woman providing accounting for the local business Definition of ACCOUNTING Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions. It provides businesses and individuals with a clear picture of their financial scene and helps with decision-making. Without accounti

COGS (Costs of Goods Sold) are the direct costs  involved in producing or purchasing the "goods" that a business sells. Goods  refer to both physical and digital products and services. Job Supplies are COGS (Cost of Goods Sold) Examples Retail Store (Physical Products): Clothing, accessories, shoes. The cost of the fabric and labor to make the clothes would be COGS. The cost of the shoes they pay to then sell them, would also be COGS.   Course Creator (Digital Service/Produc

Have you ever come across the saying that 50% of businesses fail within five years? I wanted to discuss the updated statistics for business failure, the reasons behind them, and how you can prevent them by not making the same mistakes. Avoid Business Mistakes that Lead to Failure That statistic (a number compared to another number of the same type) has decreased slightly as of 2023 reporting. However, business failure in the first year has risen. The old statistics were: app

When new businesses start, owners frequently overlook bookkeeping because they are managing various tasks or trying to manage it on their own to save money. By the time they reach out to us, there are numerous issues to address, and they don't understand why. Here are the questions we are most often asked about clean-ups and our services. If you still have a lingering question after reading this, please contact us. "How much are your services? Just give me a rough estimate?"

Due to my 16+ years in Business Consulting, I cannot just allow my team to offer bookkeeping services and that's it. Budgeting Services vs Basic Bookkeeping I know all too well, how much budgeting and financial strategy contribute to achieving an entrepreneur's goals. This is why we offer our Financial Strategy service. M any business owners assume that bookkeeping and budgeting are one and the same. However, there are significant differences between what we do with budgetin

In bookkeeping, ACCOUNT has a specific and crucial meaning. Understanding what an account is and how it functions is essential for managing finances effectively. ACCOUNTS IN BOOKKEEPING Definition of ACCOUNT An account is a record that tracks financial transactions related to a specific category, such as specific types of income or specific types of expenses. These are the foundation of financial reporting and help businesses keep track of their information in a specific way

Reconciling ensures that accounting software records (such as Quickbooks®) and bank statements match which maintains correct financial data for a business owner to base decisions off or file correct tax returns. Reconciling Accounts Online Definition of RECONCILE Reconcile means to bring things into agreement, harmony, or consistency. In financial and accounting terms, reconciling refers to the process of ensuring that two sets of records match, such as comparing bank stateme

Most business owners know that they need to get more organized. The problem they run into is they do not have the time. Most are overwhelmed with trying to wear all the "hats" and keep their business afloat. Doesn't matter if they are a one man band or a twenty employee company. I've observed the same trends no matter the size. Organizing your business to increase profit and income I will use real life examples of two clients I helped. Due to the nature of the example and it

One of the reasons, duplicate vendors happen in the first place is because a Bookkeeper doesn't check to see if that vendor already exists. Searching for the vendor first before categorizing, will help eliminate duplicates Suppose the vendor "Tony Smith" is already in the system. Then, a new vendor named "Tony's Flooring" is added, but they refer to the same individual. When the Bookkeeper reviews the reports to identify contractors who have been paid over $600, a discrepancy

Given the numerous details that pass through a GC business, impacting both the bottom line and IRS requirements, it is essential to hire an experienced Bookkeeper and ensure all these necessary tasks are being completed. While the owner is often focused on production, an expert should be focused on the finances. I will use two examples of businesses that we've helped where when we took over the books, the company became more compliant and knew exactly where they stood financi

"Financial"  means relating to money, especially how it is managed, spent, saved, earned, or invested and "strategy" means a plan of action or policy designed to achieve a major or overall goal. I will describe in full detail what this service is and why it is vital to growing a small business. We look at the big picture and work with the owner to create financial strategies. Financial Strategy The service is designed to help you make money, save money and increase profit. We

A while ago I had someone tell me they weren't worried about reconciling their accounts in Quickbooks. My eyes almost popped out of my head! I couldn't comprehend why this person would believe doing this action wasn't vital for tax reporting or managing their business! You should reconcile and know how to reconcile accurately Reconciling simply means comparing what’s on your bank statement to what’s recorded in QuickBooks® (or whatever accounting system you use). It ensures t

When new businesses start up, the owner either doesn't keep up with the bookkeeping due to wearing so many hats or tries to do it themselves to save money. Don't do your own bookkeeping Their skills and abilities are in the service or product they offer and produce. Most of the time, they are in the production and sales areas of the business. They should not be in the treasury area as it's not their expertise. W hat happens is, they either do it erroneously or don't do it at

One big problem we see when we go into assess a business is they're spending too much money and their financial scene isn't in great shape. This can hold the business back from reaching its full potential. What Does Your Full Financial Scene Look Like? Small business owners totally get how important it is to handle money wisely in their business. They know they need to manage money better to up their financial game, but often are overwhelmed due to wearing too many hats and e