The Importance of Transparency and Procedures in Outsourcing Bookkeeping Services

Bookkeeping duties are an essential part of operating a successful business. When your business starts to grow at a substantial rate, it is best to turn to outsourcing bookkeeping services to a reputable company. You must only depend on the services of a company that performs it procedures in the proper manner and with complete transparency. Accuracy is crucial for one thing, and the bookkeeping company should keep you informed of your financial conditions at all times.

Why Transparency Is Important

Transparency with bookkeeping services is important since you will not be able to gauge the profitability of your company without understanding its financial status. Other reasons this is crucial to the success of your company are that your stockholders will want periodic financial reports and financial institutions will require certain records to approve loans for additional operating capital.

Lack of Accuracy May Cost You Precious Funds

The reason that the outsourcing company needs to perform all bookkeeping procedures in a precise manner is that the lack of accuracy may cost you precious funds or profits. For one thing, you will not understand where you are spending an excess of funds if your figures are inaccurate. In addition, if you fail to report your profit margin correctly, you may not receive that new loan the company requires for expansion. When payroll is wrong, your employees’ loyalty may wane to the point that they do not work up to optimal levels.

Bookkeeping Services That You Can Effectively Outsource

When outsourcing bookkeeping services, keep in mind that you can hire a reputable company to perform the following tasks for your company:

• Sales records
• Purchase information, including payment schedules
• Income records
• GST liabilities
• Reconciliation of credit transactions and bank statements
• Revamp of filing system of all the company’s paperwork
• Payroll records, including payroll taxes and leave accruals along with superannuation details
• Debt collection
• Receive bookkeeping training to help you understand your own record-keeping system
• BAS details and possible filing for a one month extension to make related payments
• Other pertinent bookkeeping services

You can depend on Bookkeeping Partners when it comes to outsourcing bookkeeping services for your company. We offer our services on a schedule that fits your company’s needs ranging from a weekly to a quarterly basis. Your company can take advantage of one or all of services depending on your specific needs. Our company works with small businesses up to multi-million dollar corporations. We guarantee your satisfaction with our level of quality and transparency.

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Differences between a Budget Report and a Financial Report

calculator2When running a business, it is important to keep accurate financial records and keep track of expenses through the use of reports. These reports are often referred to as a budget report and financial report. Although the terms are sometimes used interchangeably, they are both considerably different in content and goals.
As a business owner or financial planner, knowing the difference between budget reports and financial reports is imperative for the business.

Budget Reports

Budget reports are records that show the numerous budgets at any particular time or day. For instance, budget reports can contain sales and marketing, operations or production. The goal of this type of report is to define the amount of funds per area and how successful the funds are utilized in each department.

Additionally, budget reports only shoe a business’s incoming and outgoing expenses and cash flow. However, it does not report on how well a company’s finances are doing but only how the money is spent.

Financial Reports

Financial reports are detailed reports and analysis of how a business is doing financially. The repost incudes all the areas of the budget report plus a summary of all liabilities and assets. This enables the viewer or owner to ascertain the company’s net worth. In fact, it is the net worth that represents how much the business is worth. As well, the financial report is comprised of an analysis of the figures and an itemised calculation of how well the business will do in the future based on a core financial plan.

Usefulness and Function

A budget report is done to demonstrate how a business is managing its finances. Generally, the accountant prepares the report and the manager reviews it. The objective of the report is to show how funds are being spent and how much is available for new items or services. Annual budget reports are created for shareholders and investors. However, some potential investors use financial reports for their primary research.
Financial Development

Both budget reports and financial reports can be utilized to create a solid financial plan for a business. For instance, financial developers and planners can use the businesses net worth to define how to manage the liabilities and assets.

Additionally, budget reports will show where budget cuts are needed such as for paying off liabilities or setting funds aside. And with annual financial reports along with the budget reports a business will have accurate numbers of their immediate financial condition and overall worth.

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