If you have decided to outsource your bookkeeping and accounting services for the first time, you may be a bit nervous about the cost of doing so. The good news is that there are several things you can do to help keep the cost of outsourced accounting services manageable. The secret to cost containment for outsourced accounting lies, to a large degree, in your own hands. Understanding how accountants charge for their services is the first step.
Bookkeeping used to be a manual, paper-intensive process. In the old days, it wasn’t uncommon for a bookkeeper to be presented with a shoebox full of receipts to work with upon being hired. Today, powerful software and cloud accounting services do away with much of the paper and manual work, but bookkeeping is still a critical business function that can make or break a small business’s success.
Did you know that there are 28 million small businesses in the country? Or that 22 million of those are just one person, and more than half of those small businesses are home-based?
So what are the common challenges these small businesses face?
Over 50% of businesses fail in their first 5 years because of cash flow problems. Most businesses face cash flow problems at some point, but many cash flow problems can be prevented by planning ahead and finding the right balancing strategy.
As a small business owner, you probably already understand the importance of marketing. After all, it doesn’t matter if you make the best products in the world; if nobody knows about your business, you aren’t going to be successful. Many small business owners spend a great deal of time and money marketing their business, but don’t see the importance of accounting. Unfortunately, that’s a common mistake; accounting is just as important as marketing, and here are a few reasons why.