Do You Resist Bookkeeping?
The Answer for the Accounting-Impaired
Monica Ross
As a sole entrepreneur,
you may be wearing all the hats, running out of time and running
on empty. You try to make time for marketing, errands and family,
but when it comes to recording the financial transactions of your
business, you find yourself procrastinating. There isn't really
that much to do to employ anyone in-house for the task, but you
can’t seem to motivate yourself to spend the few hours you
need per month to tackle that file full of receipts. Here are
some tips to help make this task less daunting:
1. The first step would
be to register your business and all taxes. This can be done
online at the Government website for your Country.
2. You will need to set
up a business bank account, as well as online banking for convenience.
You have several Banks to choose from depending on which Country
you live in. My suggestion would be to go with the bank that
you currently use for personal use.
3. Choose which Accounting
program you would like to use. My recommendation would be QuickBooks.
Your other options are MYOB, Simply Accounting, Peach Tree and
Quicken.
4. Choose a Bookkeeper
if you are not going to keep up on your books yourself. Also
find an Accountant for your year end tax preparations. You will
need to choose one that meets your needs based on cost and convenience.
5. Have a budget set
in place for all business expenses, including marketing, advertising
and purchases.
6. Set up a filing system
for all receivables, payables, receipts and bank statements.
7. Keep up on your books
on a monthly basis. Make sure you enter everything into your
Accounting Software on a regular basis so you do not have a
mess at tax time. Or have your virtual bookkeeper completing
this for you on a constant basis.
Be aware there is another
option: a virtual bookkeeper that doesn’t take up valuable
office space, or have to be trained on new software. Yes, it’s
a real person, but they don’t have to come to your office,
and you don’t have to run back and forth to get to her.
You only pay for the time used – no travel time, no coffee
breaks or vacation time. A virtual bookkeeper can adjust to
the tax needs or accounting needs of any province or state
because she or he deals with clients from many geographical
areas.
What about the cost? If
accounting is not one of your core competencies, it may make sense,
operationally and economically, to use a virtual bookkeeper. Your
time is better spent bringing in new customers than struggling
with the books. You may even find that your accountancy bills
have reduced because the quality of your record-keeping has increased!
Other reasons to
use a virtual bookkeeper:
Your bookkeeping system will be customized for your business.
Keep tabs where your money goes, with reports on how much you've
received in the last three to six months with just an email to
your virtual bookkeeper.
Good records kept by your virtual bookkeeper will make an audit
proceed much more smoothly than handing over a shoe box full of
scattered paper.
Your virtual bookkeeper will have an accountant prepare your tax
return at the end of the year, and he or she will spend much less
time on it (saving you more money) if your information is organized
and up to date.
You don’t have to buy new software or train your virtual
bookkeeper, just send your information via a secure method then
sit back and relax!
How to choose a virtual bookkeeper:
Make sure the bookkeeper is certified.
Ask for references.
Take advantage of an initial consultation: find out why they are
“attracted” to your business.
Ensure they are computer competent.
Find out how their services can be tailored to meet the specific
needs and budget of your company.
Now that we are beginning a new fiscal year, it’s a good
time to overcome your resistance to bookkeeping. Many virtual
bookkeepers provide an initial consultation at no charge. The
choice is yours: continue to exhaust the limitations of your time
and possibly retard the growth of your business, or convert the
time you free up with the help of your virtual bookkeeper into
income!
Monica Ross is the founder
and President of Virtual
Bookkeeping™, and has considerable experience working
for all types of small and medium sized businesses and independent
contractors. She has run her own business since 1999 and knows
what it is like to move from surviving in business to thriving.
A single mom/entrepreneur with a big heart, Monica loves bookkeeping
but more importantly she loves to partner with her clients to
help them grow their own businesses. Article Title: Do You Resist
Bookkeeping? monica@virtualbookkeeping.ca
**Unedited by BPO staff
