Welcome 2011

As 2010 descends, we get ready to welcome this New Year with open arms. It had been a great year (glad that America has bounced back .. no questions about why we are still the leading nation across the globe). Let's pledge to continue our association next year.

Analytix Solutions announces its next FREE webinar on “Check-in to our Suite: Accounting Solutions for the Hotel Industry” on Dec. 22

Dec. 2, 2010 Woburn, MA – Analytix Solutions announced that its free webinar for the month of Dec. will take place on the 22^nd from 5:30-6:30 PM EST. This FREE webinar is titled “Check-in to our Suite: Accounting Solutions for the Hotel Industry” and will presented by Satish Patel, CPA, founder of Analytix Solutions, a leading bookkeeping, accounting and CFO-level service company working for small and mid-sized companies.

Key highlights of the presentation:

1. Smart practices for managing your finance department
2. Emerging trends and technologies impacting financial management
3. Measuring the health of your business: tracking key performance indicators
4. Re-evaluating the needs of your finance department\
5. Client Case Study – Arena Sports

Analytix Solutions, a one-stop accounting and bookkeeping company, has been conducting free webinars in its endeavor to create a direct platform for interaction between accounting experts and hotel Industry participants. With the tips and tools given in these online accounting meetings, hotel Industry participants can overcome accounting and financial management problems and improve efficiency.

Further information about this webinar can be found on http://www.analytixsolutions.com/webinars/hotel-webinar-dec2010.asp

Interested attendees can register for the accounting webinar on http://www.analytixsolutions.com/webinars/register-webinars.asp

Check past webinars by Analytix Solutions.

Analytix Solutions announces its next FREE webinar on “Stepping-up your Accounting? How to score an Accounting Home Run” on Dec. 22

Dec. 2, 2010 Woburn, MA – Analytix Solutions announced that its free webinar for the month of Dec. will take place on the 22^nd from 4-5 PM EST. This FREE webinar is titled “Stepping-up your Accounting? How to score an Accounting Home Run” and will presented by Satish Patel, CPA, founder of Analytix Solutions, a leading bookkeeping, accounting and CFO-level service company working for small and mid-sized companies.

Key highlights of the presentation:

1. Smart practices for managing your finance department
   
2. Emerging trends and technologies impacting financial management
   
3. Measuring the health of your business: tracking key performance indicators
   
4. Re-evaluating the needs of your finance department
   
5. Client Case Study – Arena Sports

Analytix Solutions, a one-stop accounting and bookkeeping company, has been conducting free webinars in its endeavor to create a direct platform for interaction between accounting experts and indoor sporting facility industry players. With the tips and tools given in these online accounting meetings, sport industry players can overcome accounting and financial management problems and improve efficiency.

Further information about this webinar can be found on http://www.analytixsolutions.com/webinars/indoor-sports-webinar-dec2010.asp

Interested attendees can register for the accounting webinar on http://www.analytixsolutions.com/webinars/register-webinars.asp

Check past webinars by Analytix Solution.

Happy Thanksgiving 2010

It’s time to be thankful for all the good things in life. Thanksgiving 2010 is upon us and here Analytix Team wishes you a sincere heart-felt thanks to all our clients, well-wishers, friends and family who have helped us survive the difficult recession of 2009-10. We look forward to enriching upon this relationship for further growth next year.

Analytix Team wish you great time with your family and friends on the Thanksgiving Day.

Happy Columbus Day

Analytix wishes you a very HAPPY COLUMBUS DAY! It’s the day of the arrival of Columbus in America and celebrates the spirit of adventure and discovery. So hope your day is filled with fun and adventure!

4 financial basics you should know before you outsource bookkeeping for your restaurant

All restaurant businesses operate on a very tight profit margin. It is hence of vital importance that you, as a restaurant owner run a tight ship. You need to know the basics of accounting and bookkeeping for your restaurant before you outsource bookkeeping to a professional. Such a basic idea on your part will not only prepare you for working alongside the firm you outsource bookkeeping to, it will also ensure that you are aware of the financial position of your restaurant. The following are some financial basics to keep in mind for your restaurant when you are outsource accounting or bookkeeping.

Management of your restaurant’s cash flow

When you manage your cash flow, you are essentially tracking the cash which goes out as well as comes into your restaurant. When you outsource bookkeeping, this function is basically taken care of by the bookkeeping firm. However, it would help both you and your bookkeeping firm if you know the basics of how to manage your cash flow. Through it, you will also know the business patterns of where your money is coming in and going out from. So whether you have decided to outsource bookkeeping or outsource accounting, knowing how to manage your cash flow will help.

Keeping the restaurant inventory

A restaurant generally has a lot of stock and supplies coming in regularly, which keeps it running. When you outsource bookkeeping, your bookkeeping firm needs to carefully review your restaurant inventory so that you can avoid losing money on inventory. Taking a regular look at the restaurant inventory like supplies, products and food ingredients should be part of your day to day activities. This will help in managing your restaurant’s bookkeeping efficiently. The decision to outsource bookkeeping will come handy in eliminating the losses related to inventory. You can also learn a lot while interacting with the professionals when you outsource accounting.

Keeping records of your restaurant

When you outsource bookkeeping, your record keeping remains updated at all times. You will hence be able to see the profitability and overall financial position of your restaurant at all times. An expert firm generally processes invoices and receipts within 24 hours of receiving them. Interact with your bookkeeping firm and know the basics about keeping records. This way, you will be able to keep track of your finances well.

P&L Statement

A profit and loss statement holds a lot of importance for your restaurant. As the statement gives a summary of the inventory, income and expenses, you will be able to see the month-by-month progress of your restaurant. When you outsource bookkeeping, the expert firm you hire will provide you with a monthly or weekly P&L statement, which will help you in taking strategic decisions and maintaining the profitability of your restaurant.

Happy Labor Day

Analytix wishes you a HAPPY LABOR holiday! Here we salute the silent heroes 'the American workers' whose contributions have made us one of the greatest nations on this planet. We admire and celebrate the economic and social achievement of all our workers.

Thinking to outsource bookkeeping? Take care of these aspects

The decision to outsource bookkeeping is in the best interest of your business as it saves a lot in costs. When you outsource bookkeeping, you ensure that your books are being taken care of by an expert, so that you can finally focus totally on business activities. However, outsourcing bookkeeping services to the right firm is of utmost importance if you want to reap benefits of outsourcing. You need to check the credentials of the bookkeeping firm properly to ensure that its bookkeeping services suit your requirements perfectly. Be sure to check for the following aspects when you outsource bookkeeping:

Is the bookkeeping firm experienced?

Experience of the firm you outsource bookkeeping to is the most important factor. You need to ask relevant questions to the bookkeeping firm and know about the experience it has. This will give you an idea of whether it will be able to fulfill your business requirements or not. If possible, get references of past clients you can speak to, so you can know the quality of outsourced bookkeeping of the firm in question. There are also some industry-specific companies for outsourcing bookkeeping services that you can inquire about.

Are the bookkeepers qualified?

Your decision to outsource bookkeeping is made on the assumption that your books will be taken care of well. For that to happen, the bookkeeping firm needs to have expert bookkeeping professionals on their payroll. While inquiring about a specific firm for outsourcing bookkeeping services, check about the kind of professionals working there. An experienced bookkeeper working on your books will ensure that your finances will be well maintained and updated at all times.

Which services will be included? Is there enough flexibility?

Is the outsourced bookkeeping package you are availing flexible enough for your business? Your bookkeeping firm may provide services like payable management, accounts receivable management, bank reconciliations, inventory management, recording and reconciling payroll transactions, revenue reconciliation with bank deposits etc. Most firms are also offering flexible services to suit business requirements today, so you need to check the details and determine if you can scale your requirements up or down at any time. Once you ensure that the package is flexible enough, you can go ahead and outsource bookkeeping to that firm.

Is it within your bookkeeping budget?

By outsourcing bookkeeping services, you can save from 40 to 50% in costs; that is the most important objective when you outsource bookkeeping. But you still need to make the most of the package the bookkeeping firm offers you. Have a budget in mind so that you can save the most from your bookkeeping package. You would do well to also negotiate with other bookkeeping firms so that you know the best rate being offered.

The decision to outsource bookkeeping will help your business only if you select the right firm to partner with. So while outsourcing bookkeeping services, take note of the above-mentioned points to ensure you hire the right bookkeeping firm.

Want to take your restaurant to the next level? Outsource bookkeeping

Being a restaurant owner, you will know that keeping a restaurant afloat in tough economic times is a tall order. Due to the thin profit margins restaurants operate on, any tilt in the finances may topple a restaurant business and force the owner to shut down. That is why, as a restaurant owner, you need to ensure that your business has the strongest finances possible. One sure-shot way of doing this is to outsource bookkeeping tasks related to your restaurant. There are several ways professional bookkeeping accounting services can help your business. Listed below are some of them:

1. Focus more on your restaurant

The most effective way of developing your restaurant is putting your skills as a business person (and maybe a chef) to good use. You cannot do that if you are constantly looking after bookkeeping tasks. The decision to outsource bookkeeping can serve you well if you want to focus all your energy on developing your business and if you are not a financial wiz. Getting an expert for bookkeeping accounting services not only ensures that you hand over all the financial functions of your restaurant to them, but also that you focus on the more important revenue-generating activities for your restaurant. By outsourcing bookkeeping services, you need not worry yourself about the non-core functions of your restaurant and can effectively take care of more important business activities.



2. Avoid common mistakes in restaurant financial

Some restaurant owners try to take care of their everyday bookkeeping themselves. But in the process, they make mistakes in entries, which could spell doom for the business. Outsourcing bookkeeping services ensures that all your financial documents are taken care of by an expert in the field, which means there will be no mistakes in your books. Deciding to outsource bookkeeping for your restaurant will also help you in case you want to make strategic decisions regarding mergers or expansion in the future, as strong, impeccable records will help you in making the right decision for your restaurant business.



3. Add to your bottom line by outsourcing bookkeeping

Using bookkeeping accounting services from a professional also means that you can save costs associated with hiring and retention of in-house staff. Most bookkeeping service providers offer very cost effective packages, which allow you to save the costs, and in turn, add to the bottom line of your restaurant business. You hence get to increase your profitability and add to your profit margins when you outsource bookkeeping.

Bookkeeping accounting service is the right step for your restaurant if you want to take it to the next level. In addition to saving resources, the decision to outsource bookkeeping will help you in your strategic decision making and maintain error-free records throughout the year.

Happy 4th of July 2010!!

Analytix Solutions wishes all it clients, readers and well wishers a very happy 4th of July. We hope that you enjoy the long weekend coming up and celebrate this 4th of July Independence Day in high spirits!

Score over your competitors by outsourcing accounting services

Accounting is undoubtedly an integral part of running and developing a business successfully. In addition to helping run the day-to-day functions smoothly, accounting also ensures that the financial picture is clear in case you are looking for an acquisition or a buyer for your business. However, taking care of the accounting functions is no small task. After all, you are not an accounting expert. That is why outsourcing accounting services may be the best decision to achieve your business goals. Hiring an expert for accounting services not only ensures that your finances are in the right hands, it also frees you to take care of strategic decisions so that you can stay competitive in the business.

Outsourcing accounting services to an expert

Many business owners try to take care of their accounting functions by hiring a full-time in-house accounting staff. This is a very expensive option, as hiring, training and retention takes up a lot of business resources. But now, in the cut-throat business scenario, it is financially more viable to use a professional accounting service provider who has the potential to save 40-60% of accounting costs. When you outsource accounting, your work is done by expert accountants, reducing the chances of errors and producing impeccable records. Due to the growing popularity of outsourcing, the number of accounting service providers has also increased exponentially. If outsourcing accounting services can save you significant costs as compared to in-house hiring as well as get the work done efficiently, why would you want to have an in-house accounting department?

What you can expect from accounting services

When you outsource accounting, you will have a team of accountants working dedicatedly on your business financials. Most companies provide custom services, tailored to meet your business requirements, so that you do not have to pay for any service you don't require. Such custom solutions are also scalable, you so can change your workload at any time. However, discuss the details with your accounting service provider so that you know the details beforehand. When you are outsourcing accounting services, also check out other services of the company like bookkeeping, tax preparation, payroll etc. which could be useful to your business. Also iron out the other details with your accounting service provider and discuss how your financial information will be protected and which firewalls and encryption are used by the company.

When you are outsourcing accounting services to a professional company, you can focus completely on your business activities and get a competitive edge that sets you apart in the market.

Outsourcing bookkeeping: Is it the right decision for your business?

To outsource or not to outsource bookkeeping is the question today for a lot of businesses. With the focus on saving costs in the tough economy we have today, a lot of businesses are turning to outsourcing for their non-core activities like bookkeeping and accounting. While most trust a bookkeeping service provider to maintain their books of accounts efficiently, some are still in the dilemma of whether to outsource bookkeeping or not. If you are one of those business owners still doubting the feasibility of outsourcing your financial functions, read on.

Most business owners are not experts in accounting and bookkeeping and hence find tasks related to their business finance cumbersome and tedious. Moreover, as they are not experts in bookkeeping, they might end up making mistakes which might affect the business bottom line. Hiring in-house staff becomes an expensive option, with payments related to office space and bonuses eating up business profits. In such a situation, outsourcing bookkeeping to a professional firm may be the best decision a business owner can make.

Some reasons you can outsource bookkeeping to an experienced bookkeeping firm are:

1. Many businesses like restaurants operate on very thin profit margins. A single error in their books of accounts can mess up a lot of their business functionality. When you select an online accounting bookkeeping firm, you are handing over all your bookkeeping functions to experienced professionals. You can hence outsource bookkeeping and then quit worrying about mistakes in your finances, knowing that a professional is taking care of them. You can also ensure that your bookkeeping is being done correctly by having 24/7 access to your books.



2. There are a lot of firms to which you can outsource bookkeeping functions to. Such fierce competition has resulted in online accounting bookkeeping services being available at very low rates, which saves significant costs to small and mid-sized businesses. It is also easier to find out the most reputable and experienced service provider by asking current clients of the bookkeeping firm in question and inquiring about the firm's reputation in general. The costs which are saved through outsourcing bookkeeping can then be re-invested into the business for expansion or diversification.



3. Outsourcing bookkeeping functions to a professional bookkeeping firm ensures that your books are up-to-date at any given period of time. With such impeccable financial records, you can take strategic decisions with ease. Such updated records also give the true financial picture of your business, so you can run it efficiently.

As a business owner, the decision to outsource bookkeeping will benefit you the most. You can save costs as well as get your non-core work done without spending time on it personally. Just look for a reputable bookkeeping firm, and outsourcing bookkeeping will work well for you.

Happy Memorial Day 2010

On this Memorial Day, Analytix Solutions pays tribute to all the soldiers who have laid down their life for our country. Here’s saluting all our war heroes for their selflessness, bravery and sacrifice.

Want to make outsourcing accounting a success for your restaurant? Follow a weekly accounting system

The restaurant industry is a harsh one, with more changes in ownership than most businesses. In such a tough situation, you need to make your restaurant business strong financially by outsourcing accounting. Handing over your books of accounts to an accounting firm ensures that your financials are in good hands so that you can focus on your business better. However, even after you have selected the firm for outsourcing accounting, your role as the owner of the restaurant doesn’t end; you need to ensure that the accounting service provider you have hired is taking steps in the best interest of your restaurant.

The turnover of a restaurant is very fast, with income, expenses and inventory coming in and going out each day. So even when you are outsourcing accounting, you need to keep close tabs on such details so that you can avoid a month-end chaotic situation. Having a weekly accounting system for your restaurant will benefit you in this case. In case you have a small staff, you won’t be able to handle a weekly accounting system easily. The decision to outsource accounting can be in your best interest in that situation.

Industry experts believe that outsourcing accounting and having a weekly accounting system is the best step for a restaurant business. Getting weekly updates on accounting of your restaurant will allow you to respond quickly to any financial situation your business faces, which in turn, will help you stay stable in the restaurant business. While outsourcing accounting functions to an expert firm, ensure that they can follow the weekly accounting system, through which you can get the relevant updates and reports for your restaurant.

There are a number of accounting service providers today which specialize in the restaurant industry. Such outsourced accounting firms have an exact idea as to the requirements of a restaurant, so they will be able to help you out with your finances. You can make inquiries with various firms who provide accounting services and check out the packages and the services they include in them.

A good firm for outsourcing accounting will be able to customize its package according to the requirement of your restaurant. Getting a weekly accounting report from such a firm will be an easy task and will help you in running a profitable restaurant for a long time.

Want to save time and effort for your real estate business? Outsource bookkeeping

If you are in the real estate business, you will know that taking care of bookkeeping functions of the business takes a lot of time and effort. This is mainly because real estate bookkeeping is very different than bookkeeping for other businesses. It is more complex and requires the attention of an experienced bookkeeping professional. If you want to avoid the headaches and stress associated with real estate bookkeeping, you can outsource bookkeeping functions.

Real estate bookkeeping is so complex that the business owner may sometimes ignore core business activities to complete it. This has an adverse effect on the business and affects its bottom line. If you chose to outsource bookkeeping to a professional firm having experience in real estate bookkeeping, you can stem such losses. Not only will such a firm be expert in real estate bookkeeping, it will also ensure that you get to focus on your core business activities.

Getting a professional firm for bookkeeping services also means that you save on the money you spend on hiring in-house resources. An accountant-level employee comes very expensive and hiring an in-house one can put a strain on your resources. A real estate bookkeeping firm generally also offers affordable and cost-effective packages in comparison to hiring an expensive bookkeeper in-house. The costs saved with your decision to outsource bookkeeping can then be re-invested in business activities, so that you can expand and diversify your business as required.

When you look to hire professional bookkeeping services, ask around for a firm which has experience in real estate bookkeeping. Such a firm will know the general rules and policies which are best suitable for your real estate business. By deciding to outsource bookkeeping to a professional firm you can ensure that your books are updated and error-free at all times. You can also avoid the mistakes made in entering transaction into your books by having a whole team from the bookkeeping service firm work on your books.

When you outsource bookkeeping functions for your real estate business to a professional firm, you ensure that it is in the right hands. Your books will be updated on time and what's more, it will be affordable than any other option you were considering. You can hence quit worrying or spending time on real estate bookkeeping and focus on your core business.

Want to increase profits of your restaurant? Think of outsourcing accounting services

In our last post, we discussed some basics of outsourcing accounting services for a restaurant business. Continuing with our topic of restaurant accounting and bookkeeping, we thought of highlighting HOW outsourcing accounting services can help your restaurant business grow. As said before, profit margins of restaurants are quite thin as compared to other businesses.

Outsourcing accounting services is a good way to ensure that your costs are reduced while getting your financials done efficiently. Some ways in which the decision to outsource accounting can help your restaurant are:

1. Maintain Impeccable Restaurant Financials

Having your books of accounts updated at all times is very important, especially in the restaurant business. Outsourcing accounting services to an expert accounting firm ensures that there is a team of experts working on your books at all times. Having impeccable records means that you won't have to scramble at the last moment when it's tax time. If you are trying to take care of accounting yourself or hiring a bookkeeper, you are likely to make mistakes too. If you outsource accounting, you eliminate any errors that your books might be having. Accounting professionals of an experienced accounting firm ensure that your books are free of any errors and up to date at all times.



2. Spend More Time on Expansion & Profitability

As a restaurant owner, the most important benefit of outsourcing accounting services will be the time you save. You can spend this time on thinking about strategic opportunities related to expansion, mergers or simply increasing profitability. When you outsource accounting, you leave all the non-core functions headaches to an accounting firm, while you focus on important, revenue generating or expansion activities.



3. Save Costs and Increase your Profitability

A good way of increasing profit margin of your restaurant business is reducing costs related to everyday activities. Outsourcing accounting services not only save you the cost of hiring in-house staff, it also saves you the money spent in training and hiring. If you are allotting space to your accountant, you can also save on its rent by deciding to outsource accounting. The savings that you accumulate over a period of time added to your bottom-line or re-invested in your restaurant.



4. Take Strategic Decisions with Ease

Time is of essence when you are thinking of taking strategic decisions. If your books of accounts are not updated or you do not spend enough time exploring different opportunities, you might end up taking wrong decisions for your restaurant business. Outsourcing accounting services means that you will have the time to explore any opportunities you find for your restaurant. It also means that when it's time to take the decisions, the financial position of your restaurant is crystal clear, so that you can judge whether the deal is viable for your business or not. Outsourcing accounting services hence helps in taking strategic decisions as well.

With outsourcing accounting services, you can not only increase profits of your restaurant business, you can also manage it well and expand when the time is right. When your profit margins start showing an improvement, you will know that the decision to outsource accounting was a good one for your restaurant.

Happy Easter 2010!!

It’s time for celebration again: Easter 2010 is upon us.

Analytix Solutions wishes all its blog readers a very happy Easter celebration. We hope you have a great time with your family and friends over the Easter weekend.

Outsourcing accounting services for your restaurant? Some basics for restaurant accounting

Success of any business is defined by one factor: profits. This is even more relevant in case of restaurants, which operate on a very thin profit margin. As a restaurant owner, you must know the perils of finances when it comes to your business. It is hence important to know some basic accounting factors when you are outsourcing accounting services to a third party. Such knowledge will not only prepare you for working well with the accounting service provider, it will also help in knowing the overall position of your business. Keep these financial basics in mind while outsourcing accounting services, and you will be able to make your restaurant business profitable.

Managing Cash Flow

Tracking cash coming in and going out of your restaurant is the main purpose of managing your cash flow. You can manage your cash flow better with the help of the firm you are outsourcing accounting services to. Tracking your restaurant’s cash flow will basically help you in knowing business patterns and noting where the money is coming in and going out.

Restaurant Inventory

Many restaurants lose a lot of money in inventory i.e. the supplies needed to run the restaurant. You need to take careful look at the inventory of your restaurant like supplies, products and food ingredients if you want to manage your restaurant accounting properly. Outsourcing accounting services eases the task of maintaining books, but you also need to reduce losses for your business to be profitable. A professional accounting services firm can guide you as to a proper method for taking inventory.

Record Keeping

You also need to record the income and expenses of your restaurant, so that you can get an overall feel of the profitability of the business. Outsourcing accounting services ensures that your record keeping is updated at all times. An experienced accounting services firm processes receipts and invoices into your books of accounts within 24 hours of receipt, ensuring that your record keeping is always up to date.

P&L Statement

A Profit and Loss Statement is a very important document for your restaurant. A monthly P&L statement will help you know the overall true profitability of your restaurant as it summarizes the incomes, expenses, inventory etc. for a particular time period. As you are outsourcing accounting services, your accounting firm will provide you with regular P&L statements, with the help of which you can take strategic decisions and maintain the profitability of your restaurant business.

Although you are outsourcing accounting services, these four are the basic things you need to take into account to ensure that your restaurant business has strong finances. Specialized accounting services for restaurants will also help you maintain profitability of your restaurant.

4 ways outsourcing bookkeeping services can help grow your business

Managing and growing your business is not an easy task, considering that you have the responsibilities of all the departments on your head. If you are looking for ways to reduce your load and dedicate time to growing your business, outsourcing bookkeeping services may be the right step for you. Business owners generally ignore the number of hours they spend in taking care of their bookkeeping functions, which they can avoid by outsourcing bookkeeping services. By outsourcing bookkeeping functions to a service provider, you can not only save on time but also ensure that your bookkeeping records are maintained impeccably.

The following are 4 ways outsourcing bookkeeping services can help in developing your business:

1. Save Time

The most important benefit for business owners of outsourcing bookkeeping services is that they can save on time, which can be used for expansion of the business. Outsourcing bookkeeping can ensure that you as the business owner can focus on your core business activities so that you can take your business to the next level.



2. Save Resources

Outsourced bookkeeping services are generally cheaper than hiring in-house bookkeepers. Outsourcing bookkeeping services to a service provider also means that you can save on office space as well as the rent associated with it. The resources saved by outsourcing bookkeeping services can then be re-invested into the business, increasing the scope of expansion.



3. Reduce Mistakes In Bookkeeping

If you are trying to complete bookkeeping yourself, you are likely to make mistakes. Even if you hire a single bookkeeper for your business, there might be errors in the final documents. On the other hand, a bookkeeping service provider has a whole team of bookkeeping professionals, who are experienced in the field and can ensure that the finished work is impeccable and without mistakes.



4. Have Impeccable Financial Records

Outsourcing bookkeeping to an expert means that you can stop worrying about the state of your financial records. The bookkeeping service provider you hire will be experienced and reputed, which means that you won't have to scramble at the tax time to update your records. Outsourcing bookkeeping services is as good as handing over your financial records of your business to an expert and then forgetting about it till March every year.

While looking to hire a professional bookkeeping service provider, check its reputation and experience carefully. When you find the right service provider for outsourcing bookkeeping, you can proceed with growing your business according to your plan.

Outsourcing accounting: Is it good or bad for your small business?

Outsourcing is a bit of a dilemma to many small businesses. Small business owners wonder whether outsourcing non-core functions can bring them enough benefits or whether it is too great a risk to take. A major issue for small businesses is to decide whether outsourcing accounting and bookkeeping, which takes up a major chunk of their time, is the right step for their business. In order to determine whether outsourcing accounting to a professional accounting firm is the best step for a small business, it is necessary to analyze the advantages and risks associated with it. If you are one of those small business owners facing the same dilemma, read on.

The advantages of outsourcing accounting for small businesses are many:

Focus on revenue-generating activities
The main advantage of outsourcing accounting for a small business is that it allows the small business owner to focus on the core business activities without worrying about the state of books of accounts. The major problem faced by many small business owners is the inability to dedicate enough time to revenue-generating activities. With an accounting firm taking care of all accounting and bookkeeping functions, the small business owner can rest assured that business finances are being taken care of, and can hence dedicate his/her full focus on business activities.

Leave the accounting functions to experts
Outsourcing accounting to a professional accounting firm ensures that experts are working on your accounting. This reduces the chances of errors in your books of accounts. This also means that your books will remain up to date at any given point of time, so that you get the true picture of your business profitability and can take business decisions accordingly.

Save costs
Outsourcing accounting to a professional is cheaper than hiring in-house resources. By outsourcing accounting, small businesses can save up to 40% of costs. This is a significant amount of saving for a small business. This amount can be re-invested into the business. With the many accounting firms in the market today, you can select a service provider who has experience in your industry.

Customized accounting services
Accounting firms provide customized accounting services, which meet specific small business requirements. You can ask for specific reports at regular intervals so that you get the correct picture of your business’ profitability. You can also omit those accounting services your business doesn’t require. Outsourcing accounting functions hence ensures that your business has the solution most suitable for it.

There are also certain disadvantages of outsourcing accounting that need to be taken into consideration:

Confidentiality
Outsourcing accounting means that you have to send confidential accounting information to the accounting firm. If proper security measures are not taken by the accounting firm in question, confidentiality of the accounting information may be breached. Small business owners need to double check on what security measures are being taken to protect their confidential information to avoid a breach.

Inexperienced accounting service providers
Inexperienced accounting firms are a major issue for outsourcing accounting. Outsourcing accounting to an inexperienced service provider can damage the profitability of your business as well as take up extra time for correcting the mistakes that accounting firm makes. While outsourcing accounting, check the experience of the accounting firm and talk to past clients in order to get an idea about the skills of the firm.

The advantages of outsourcing accounting far out-number the possible disadvantages of the same. If small business owners select the accounting firm carefully, their business can prosper steadily even in a tough market.

Outsourcing bookkeeping: 5 things to check

Are you a small business owner looking for ways to save costs? Outsourcing bookkeeping is a great way to reduce costs while getting the work done efficiently. Outsourcing bookkeeping tasks ensures that you hand over all the bookkeeping activities to an expert and focus all your attention to the main business activities. But here's the catch: you need to hire the right bookkeeping firm to do the job for you. You need to make an informed decision regarding hiring an experienced bookkeeping firm, which suits your business requirements perfectly and has the potential to add to your business' growth. While outsourcing bookkeeping to a professional firm, keep the following pointers in mind:

How experienced is the bookkeeping firm?

The most important factor in outsourcing bookkeeping functions is the experience of the firm you select. While checking out various firms, ensure that you ask relevant questions about its experience. If possible, get references of past clients, so that you can speak to them yourself and know the quality of work of the bookkeeping firm in question. There are some firms which specialize in providing bookkeeping services to specific industries. If you can find one which specializes in your industry, it would be ideal for your business.

What are the qualifications of the professionals?

You should be outsourcing bookkeeping to a firm which has qualified and experienced bookkeepers. Check with the bookkeeping firm regarding the qualifications of the bookkeepers who will be working on your books of accounts. Qualified people working on your bookkeeping ensures that your finances will be maintained efficiently, without any mistakes.

Is the bookkeeping firm technologically advanced?

If your bookkeeping service is going to include online bookkeeping, the bookkeeping firm will need to be updated with the latest technology. To provide the right bookkeeping services, the firm will need the right kind of softwares and programming. Experienced bookkeeping firms are experts at handling various bookkeeping softwares like QuickBooks, Peachtree, MYOB, Great Plains etc. They also have strict measures in place for ensuring data security. Before outsourcing bookkeeping, ask questions about the kind of technology the bookkeeping firm uses.

Which services will be included? Is there enough flexibility?

While outsourcing bookkeeping, check which services are included in your package. Professional bookkeeping firms generally provide bookkeeping services including accounts payable management, accounts receivable management, bank reconciliations, inventory management, recording and reconciling payroll transactions, revenue reconciliation with bank deposits etc. Moreover, their services are flexible, so you can scale your requirements up or down at any time. This flexibility saves a lot of costs at the time when your bookkeeping requirements are minimal.

Does the bookkeeping package match your budget?

Outsourcing bookkeeping functions has the potential to save you up to 40% cost of in-house resources. However, you still have to make the most of the deal the bookkeeping firm offers you. Fix a budget that is affordable for you and stick to it when you are outsourcing bookkeeping for your business. You can also compare bookkeeping packages other firms are offering, so that you get the best bookkeeping package available.

Outsourcing bookkeeping to an expert bookkeeping firm ensures that you save costs as well as manage books of accounts efficiently. Invest some time in researching for a good firm, which can become your partner in making your business more profitable.