Answers to Your Bookkeeping Questions, Part 1 of 2

Wonder how outsourcing your bookkeeping works? Here’s part one of everything you ever wanted to know, with more answers in our next blog.

Answers to FAQs about Outsourced Bookkeeping

Here are common questions we are asked:

How do bookkeeping firms price their services?

Many bookkeeping services charge on an hourly basis. However, it’s much better to find a service (like BookWerks™) that bills on a flat monthly subscription basis, which can scale up as your business grows and your needs become more complex. In addition, you’ll always know what you are paying with no surprises.

What kind of customer service should I expect from my bookkeeper?

Support with everyday financial questions is usually included. Your assigned bookkeeper should be able to quickly answer your business financial questions any time. At BookWerks™, we make every effort to respond to calls and emails by the following business day.

Which is better, cash or accrual bookkeeping?

One is not better than the other. With Cash Accounting, you record transactions when the money actually hits your bank account. If you invoice on the 25th, and the payment comes in the next month on the 10th, the transaction is recorded in the second month. This method is good for businesses that have immediate sales, like restaurants and retail stores.

Accrual Accounting records transactions when the purchase is made. For example, in the above situation where you invoice on the 25th, the transaction is recorded in that month, not the month when the money arrives in your bank account. If you offer customers credit or request credit from your suppliers, you will probably use this method.

What types of companies use outsourced bookkeeping services? 

All types of businesses. We serve business owners in the restaurant/brewery/food truck space, veterinary and dental professionals, entrepreneurial graphic designers, jewelers and clothing makers, professional service companies, and more.

What is needed to get started with an outsourced bookkeeper?

You will need three things:

1. Electronic transaction access
2. Expense reporting software
3. Separate accounts for your business and personal transactions

Can my international company use a domestic bookkeeping service? 

Yes. As long as your business is a US entity, you can be based anywhere. If you have foreign subsidiaries, we can provide consolidated reporting.

Why do flat-fee bookkeepers like BookWerks™ base their prices on expenses?

Expenses reflect the complexity of a business and are simple to calculate. Make sure the firm you choose prices their services fairly. An affordable outsourced bookkeeping company will charge competitive rates.