Getting a handle on bookkeeping
Bookkeeping is like washing dishes. Nobody really likes to do it, but you absolutely have to take care of it if you don’t want a huge mess to pile up.
Recording income, expenses, deposits, payroll and all of the transactions for your business make up the lion’s share of your work in bookkeeping. Bookkeeping is primarily a data entry role. It takes attention to detail, accuracy and consistency. And effective bookkeeping lays an important foundation for the accounting and analysis that will follow it.
As a business owner, you have three choices to handle your bookkeeping. You can do it yourself, you can have an employee handle it or you can hire an outside firm to take over your bookkeeping for you.
Handling your bookkeeping yourself or hiring an employee to handle it both have the benefit of keeping you directly in control of what is happening with your business. If you operate a very small business, it may be effective for you to handle the bookkeeping on your own, but it won’t take long for the responsibility to grow to the point that it is not an effective use of your time. Your personal time as the leader of your business can return a significantly greater value than sitting in front of your computer entering transactions. Additionally, if your mind set isn’t geared toward attention to detail and accuracy…leave this to someone else.
Leaving bookkeeping to a trusted employee gives you many of the benefits of keeping it in-house, while also freeing up your time to work on higher return activities. The most important aspect of having an employee handle your bookkeeping is effective training and instilling the importance of the task that the employee is taking on.
Whether you handle the bookkeeping yourself or turn it over to an employee, creating an environment that encourages success is crucial. FusionForge Consultants is here for you. Our partners are prepared to work with you to create a an effective Chart of Accounts and bookkeeping process for your organization, train your staff on effectively and efficiently processing bookkeeping transactions and remain a phone call or email away to answer questions and provide ongoing support as your business grows.
For many of you, that solution is enough, but some of you glazed over at the mere thought of bookkeeping. For you, it might be wise to consider turning your bookkeeping over to an outside firm. Your options there include CPA firms and outside bookkeepers. It can be very convenient to have the same CPA firm who handles your taxes take care of your bookkeeping, but that convenience comes at a cost. CPA firms tend to have a higher hourly rate than an independent bookkeeper and it may not be their main focus. The bookkeeper is more affordable, but you must insure that you find one with the experience and skill set to support your needs.
If you are looking to completely turn over your bookkeeping to an outside firm, give me a call. FusionForge Consultants has partner organizations who specialize in bookkeeping and have relationships with several of the CPA firms in the area.
Bookkeeping is an often unappreciated, but critical role in the growth of your business. Investing the upfront time in creating effective systems will return significant dividends for your organization down the road. FusionForge Consultants is here to support you in crafting that more perfect future.