Using an accounting service to manage your business finances

Managing business finances can easily take up 20 hours of your time each week. This is in addition to managing your company and helping it to grow. Business owners know they need to worry about marketing, sales, customer satisfaction, and product development and they just don't have time to deal with the day-to-day accounting problems. Hiring a professional accountant will set you back thousands of dollars, especially if your business is not growing fast enough to support another employee.

To save yourself the hassle of dealing with your business finances, you can hire an accounting service to manage them. Hiring out your business finances will save you a great deal of time. Professional accountants will monitor your invoices, accounts receivables and payables, payroll, taxes, insurance, retirement accounts, profit tracking, and debts. These services will take at least 20-40 hours of your time each week so it makes sense to let someone else worry about them on a daily basis so you can get onto the more important parts of managing your business.

Hiring a professional accounting service to manage your books will be a pretty big investment, but it is cheaper than hiring a professional accountant. Depending upon the company, you should expect to pay around $500 or more each month. Using an accounting service will actually save you money if you calculate how much time you are wasting on accounting. This also frees up more of your time to focus on generating more sales and increasing customer satisfaction.

You will receive weekly or daily reports from the accounting firm that let you know how much cash you have available for business purchases. This will help you avoid over-drafting any of your accounts and it can help you forego making expensive purchases that do not benefit the business.

Using a professional accounting service also protects your business from costly mistakes like tax evasion. Accounting services normally come with tax filing services and they typically have CPAs on staff to make sure everything is correct. Business taxes can get complicated quickly and it helps to have a CPA do them for you since they already understand all the ins and outs of business taxes. They will also be able to help you save money on taxes since they know what type of deductions you can claim. The benefit of having the accounting service handle your taxes is that the IRS can come after them if your taxes were done improperly. While you may still be held liable, they won't walk about without a penalty or a lien also, so it is important to them to get their tax reporting correct.

Keeping track of your business finances can become confusing quickly. Using a professional accounting service will help you stay organized and help you focus on your business. They will handle all of the paperwork that needs filing along with teaching your employees how to properly input their information into the system to obtain correct payroll.

Most accounting agencies will come into your office and assess your situation. They may even organize all of the little details for the business like vacation time, time cards, and work schedules. Hiring them to organize your business can take a huge weight off your shoulders and it will ensure that your business is properly organized to run successfully.

Contact 3 or 4 different accounting services to make sure they offer all the services you need and that they are in the price range for your business. Verify their credentials to make sure they are legitimate. Ask for some references if you are worried about their ability to handle payroll or taxes. Hiring a professional accounting services is one of the best things you can do to help your business run properly and to watch your business grow.