Employing an in-house bookkeeper can be expensive. That cost is not only a salary, but the other direct costs such as employer payroll taxes, workers compensation, medical insurance, retirement plans, and other benefits. Additionally, there can be vacation and sick days to consider as well. There are also the savings in both the time and money involved to place classified ads, interview and train an employee. Our fees to provide you with a high level service to your company are quite competitive by comparison. Since we maintain your financial ledger, the ongoing recording of data and preparation of documents, your year-end work can be significantly reduced resulting in lower accounting fees and faster turnaround time in preparing tax returns and financial statements.
Your monthly investment will be based upon the volume of transactions and the overall complexity of your business.
Frequently Asked Questions regarding Outsourcing of your bookkeeping:
Q. When Should you Outsource your Accounting?
A. You may only need a part-time bookkeeper for your business and do not want to add another position to your staff. Outsourcing this “part time” need can provide an excellent alternative. On the other hand as a small business, perhaps you need the services of a part-time CFO to oversee the financial operations of your company or provide analysis to special financial projects.
Q. Why does it make sense to outsource your company’s bookkeeping/ accounting functions?
A. Outsourcing a “back-office” function such as bookkeeping allows you to focus on the core of your business. So if your business needs a bookkeeper for only a few hours a week or just a few hours per month you need highly trained individuals to give you an accurate, organized, consistent and cost effective solution to the ongoing accounting needs of the business.
Q. How does Outsourcing Work?
A. Your bookkeeping can’t get any easier! Just 3 easy steps:
- You will prepare for pick up by a member of our staff. This alleviates information being passed via the internet.
- We do the work while you operate your business.
- We print & drop off your financial reports and printed checks.
Q. What software will I need?
A. None, our office utilizes QuickBooks and will maintain your files at our office along with a daily off-site backup.
Q. What are the benefits?
A. Outsourcing gives your company access to a higher level of expertise than you normally could afford. R&D lets your company access the right amount of each level of talent needed throughout the year to effectively give you timely transaction processing and meaningful financial reporting and analysis.
The savings puts your accounting department on our staff, not yours, keeping your overhead flexible and lean.
As the owner, you can now focus on your core business, not your accounting department. Outsourced accounting services can result in improved efficiency, cost savings, access to financial information not available by in-house employees and an improvement in your ability to monitor your business. You maintain control over your cash. We provide the data, but you approve all invoices for payment and sign all checks.
Q. What about income tax planning and preparation?
A. Because R&D is not a CPA firm, we do not provide income tax planning and preparation or perform audits. Those functions are typically performed by Certified Public Accountants. We view ourselves as an extension of our client’s business and act in that capacity to provide a foundation of accurate financial records.
Operating without record’s is like driving without brakes – CRITICAL – both are necessities. You may be thinking, “if my business takes in enough money, all these paperwork matters will resolve themselves. If they don’t, I’ll hire someone to clean them up later.”
PLEASE THINK TWICE ABOUT THIS!
How frequently you do your accounting can affect your company’s survival rate:
How good your records are kept can also affect your company's survival rate:
An accurate bookkeeping system is also crucial for preparing your annual federal and state income tax returns, filing sales tax and/or payroll and taxes in a timely manner.
Take record keeping seriously. If you get only one thing out of this article, go away knowing that ignoring your books is inviting disaster. If the IRS ever audits you or your business and finds insufficient records or significant mistakes in your bookkeeping, it can disallow significant deductions. The IRS can also impose fines and penalties, possibly forcing you out of business and wiping out any savings as well. Maybe you feel you can’t afford a bookkeeper when you’re starting out. Typically, bookkeepers charge $30.00 to $50.00 per hour and can take care of a small business for as little as $125.00 to $250.00 a month, leaving you with more time to focus on your core business.
DO YOUR HOMEWORK - Don’t just hire anyone claiming to be a bookkeeper. Check references and learn enough about your records so that you can see the bookkeeper knows her stuff!
R&D Legal Bookkeeping, Inc.
7 Wisner Rd. Suite 2, Warwick, NY 10990
Ph: 845.986.9424 | Fax: 845.986.9425
admin@rdlegalbookkeeping.com
