Answers to Your Bookkeeping Questions, Part 2

This is a continuation of our Part 1 blog about Bookkeeping questions:

What if I change my mind about using an outside bookkeeper?

We understand that things change for business owners and, from time to time, they may need to pause or discontinue services. Every company has a different policy about cancellation and commitment. At BookWerks™, your rolling commitment is for 30 days.

What software is most commonly used?

Typically, bookkeepers will use either Xero or QuickBooks software. BookWerks™ uses both, depending on the preference of the client.

If I’m on QuickBooks, can you migrate me to Xero accounting software?

Yes, we can help you make the transition quickly. During onboarding, we’ll make journal entries in Xero from your monthly account totals in QuickBooks, for both the balance sheet and the P&L/income statement, going back to the start of the year.

How do I know if I need a bookkeeper or a CPA?

For decades, CPA firms provided bookkeeping and payroll services to their clients, along with tax and advisory services. This made CPAs a one-stop-shop for all things accounting and finance. However, this approach is not as common now, and it is typically not cost-effective for the client.

As separate payroll services developed, many CPAs found they could not price match the bookkeeping firms that were solely focused on day-to-day financial tasks. Many CPAs discontinued their payroll and bookkeeping services, choosing instead to focus on tax and advisory services.

This means that many small business owners will benefit from partnering with both a bookkeeper and a CPA. When small businesses outsource bookkeeping to the best bookkeeping companies available, they can trust that their everyday financial information is being tracked, managed and prepared so that, come tax or business strategy time, they will be ready to consult with their CPA.

What is the difference between BookWerks™ and a CPA service?

BookWerks’™ accounting staff does not perform CPAs services; we do not handle tax returns or offer CFO services. Our principals are not accountants, but rather small business entrepreneurs who recognized the value of providing robust financial reports that tell how a business is performing, so owners can make informed and timely business decisions.

We partner with trustworthy CPA firms and can happily work with them so that they have access to mutual clients’ online accounts. When you contact BookWerks™, you don’t have to immediately know whether you need bookkeeping services, CPA services, or both. We can help you figure out what type of service is best for your needs.

What are the advantages of using an outside bookkeeping service instead of an in-house bookkeeper?

While an in-house bookkeeper may seem simpler at first, there are actually many advantages to outsourcing your bookkeeping services instead:

• Partnering with an outsourced bookkeeper is often less expensive than hiring an employee. Our bookkeepers are solely focused on providing accurate, timely financial reports, and they won’t get distracted by other business tasks (or need healthcare, vacation, and the other perks many full-time employees expect).
• With an inside bookkeeper, you are at the whim of one person. If that one person decides to go on vacation or leave the company, you may have to scramble to keep recording transactions seamlessly. With an outside partner, there is never an interruption. Our team of available bookkeepers ensures that even when one person is down for the count, there is another person available to step in and keep things running smoothly.
• When small businesses have an in-house bookkeeper, that person is often wearing multiple hats. They are likely not just managing your books, but also supporting other administrative tasks, or even sales, marketing, or HR tasks. Your inside person may not have the proper training or up-to-date knowledge of the rules and regulations that affect your finances. With an outsourced bookkeeper, you know you’re getting a trained bookkeeper whose top priority is accurate financial reports.
• Professional bookkeeping services are also less likely to make costly mistakes.
• We keep your private financial information private.

For accurate, always on-time, secure financial record keeping that helps inform important business decisions, most small businesses find outsourcing their bookkeeping is a smart investment.

Ready to Explore Outsourced Bookkeeping? Set up an intro call.

At BookWerks™, we are committed to providing timely, accurate financial services to small business owners. Whether you are looking for an affordable Cincinnati bookkeeping service or a virtual bookkeeping option, we are ready to chat and see if we can help. Reach out today to set up an intro call with our team.