Balancing the books for a small business might not seem like a complex task at first. After all, your business likely has far fewer transactions than your big-corp competitors. Even so, the IRS is often more likely to audit small businesses because it is cheaper and easier to do so, compared to auditing the wealthy. Regardless of what your odds are of facing an IRS audit, working with a QuickBooks bookkeeper can ensure all your ducks are in a row.
What Is a QuickBooks Bookkeeper?
Bookkeepers are finance professionals who balance the books for organizations. These professionals record transactions, manage general ledgers and create financial statements. Some bookkeepers specialize in niche industries or the use of specific programs. A QuickBooks bookkeeper uses the QuickBooks software to carry out these duties. In 2015, Chicago Now estimated that 80% of small businesses relied on this software to manage their books. It has continued to grow in popularity since then.
What Services Do QuickBooks Bookkeepers Provide?
Because QuickBooks automates so much of the bookkeeping process, a bookkeeper more commonly plays the role of the auditor. After all, even the best software occasionally makes mistakes. This frees your bookkeeper to provide additional services beyond just balancing your books.
QuickBooks may not track all transactions accurately. Your bookkeeper enters bills, sales and other transactions based on your receipts and other documents. This can be a time-consuming process.
When you or your accountant files your taxes, all the transactions need to be properly classified. Improper classifications can affect how much you pay in taxes and what deductions you become eligible for, so this is very important.
Your QuickBooks bookkeeper ensures your credits and debits or expenses and revenue balance out. This requires reconciling your bank and credit card statements with your general ledger. Ideally, you should do this at least once per month, once per quarter and at the end of the year.
Most businesses produce three main documents by the end of the year. Your bookkeeper can ensure you have access to all of these, which is handy for financial decisions, seeking loans and other important tasks:
- Cash flow statement
- Balance sheet
- Income statement
As a business owner, it is only natural to have questions about the financial management of your business. Your bookkeeper can answer questions related to taxes, cash flow, payroll and transaction classifications.
Payroll management is the administrative task that ties accounting and human resources together. Your bookkeeper can handle this joint function to ensure you remain compliant.
Why Is QuickBooks Better?
If you don’t currently use QuickBooks, you might wonder why it’s so popular and if it’s worth switching. QuickBooks’s popularity began with endorsements from accountants after being launched in 1998. It is extremely affordable and saves professionals a lot of time that would otherwise be spent manually itemizing transactions.
Here are additional benefits identified by PCMag:
- Transaction forms and contact records are extremely detailed.
- Users receive solid payroll support.
- QuickBooks is user-friendly and makes navigation a breeze.
- It provides customizable reports.
- Projecting profitability is easy.
- Business owners can use hundreds of integrations and add-ons.
- Hybrid sales tax options and cash flow pages increase functionality.
One of the most important thing financial professionals and business owners love about QuickBooks is that the developers are constantly making improvements. New features are added at least once per year.
Why Should You Hire a QuickBooks Bookkeeper?
As a small business owner, you likely wear many hats. You may already use QuickBooks. Maybe you even have a background in bookkeeping or accounting. So, why not handle all the financials yourself? Well, for starters, even accountants hire bookkeepers. There are a number of reasons for this:
All it takes is an extra zero or a misplaced comma to turn your records upside down. While even bookkeepers are not immune to making mistakes, these professionals put checks and balances in place to notice when something doesn’t add up quite right.
Payroll and accounting are two complex areas of business that must comply with labor laws and tax laws. Failure to comply could cost your business fines, penalties, fees and bad publicity. Financial professionals help ensure you remain compliant.
When you manage your finances on your own, you become fully accountable for how you balance your books and what you file in your taxes. By hiring a professional, you pass on that accountability or liability to a professional.
You could spend days every quarter and year-end balancing your books yourself, but isn’t your time be better spent managing your business? When you hire professionals for the job, you can focus on what you do best while they do the same.
Do You Still Need an Accountant?
When you hire a QuickBooks bookkeeper, whether you still need to work with an accountant depends on your skill sets. Some business owners have the financial skills to handle the big-picture finances but just need someone to balance the smaller details. If this describes you, you might not need to work with an accountant.
If your bookkeeper provides tax-filing services, you still may not need an accountant. The good news is that, even if you do decide to hire an accountant, when a bookkeeper organizes all your transactions, the accountant has less work to do. You can, therefore, negotiate a much lower price than if the accountant had to complete all tasks on his or her own.
How Do You Find a Good QuickBooks Bookkeeper?
When choosing a good bookkeeper, it’s important to work with someone experienced and knowledgeable. Of equal importance is working with someone whose values match your own. At Manuel Mattz Financials, our values align with underrepresented demographics and the businesses that support them. We primarily work with business owners who are women, minorities, or LGBTQ, or who belong to other underserved groups.
We are dedicated to ensuring our services are affordable to people within these communities. As a result, we have temporarily lowered our service fees during the economic decline. So, do you need a QuickBooks bookkeeper for your business? Contact us for more information about our services and rates.