Talk and Act
Small business owner ply their trade in order to create cash flow and fill up their bank accounts. Their hard earned money does, however, need to be recorded, tracked, and organized so that the information in available when needed. If the business is very small, the owner might be able to handle the books himself, but most will need to seek the help of a professional bookkeeper.
The reason that many of them outsource bookkeeping services is that small businesses don’t often generate enough transactions to employ an in-house bookkeeper. And one of the benefits of outsourcing is that at least there is a bookkeeper taking care of the business records. Professional bookkeepers have training and experience that a small business owner in all likelihood does not. Outsourcing to a bookkeeping service gives the small business more time to take care of promotion, marketing, and performing the actual work for the core business. Also, when the owner attempts to keep books on his or her own, there is no one to double check the work. Costly and time-consuming mistakes will probably be made, errors that someone with experience and training won’t make to begin with.
Small business owners may think that simply operating a business requires the services of an in-house bookkeeper, but that probably is not the case. Smaller businesses do not perform the number of transactions that substantiates employing a full-time bookkeeper. The salary alone adds up fast, as do other factors that some people don’t think of right away; retirement plans, medical insurance, and workers compensation are all requirements of a full-time employee. It doesn’t take much number crunching to see how quickly these expenses add up. An outsourced bookkeeper is not an employee and will therefore not garner these benefits from you.
When outsourcing to a bookkeeping service, that company will offer the small business owner options. The owner chooses the services that will be carried out. The amount of detail that in needed is also determined. Since no small business runs exactly the same, different types of requirements will arise. The owner and bookkeeper will get together and figure out how many invoices, deposits, and checks will be taken care of on a monthly basis. Once this is all decided upon, a monthly fee scale can be figured out. These fees are often reasonable and much cheaper than the salary and benefits that are provided to an in-house bookkeeper.
Time and money are the two most valuable resources available to a small business owner, and outsourcing to a bookkeeping service saves both. The experience and efficiency the bookkeeper brings offers peace of mind to the owner. And when the owner has more time to take care of the business itself, the more revenue is generated.
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Tags: Accounting, bookkeeping, Business, finance, Outsourcing
Posted in Accounting · September 4th, 2010 · Comments (0)
For a freelance contractor, choosing an umbrella company can be daunting, especially with so many to choose from. It is important to know what fees they charge upfront, specific services they provide, if they offer Internet access, and what kind of reputation they have. The time you spend researching the company you choose can end up saving you a lot of money in the end.
When looking at potential companies read the fine print and be on the lookout for hidden entry and exit charges. If your income is unpredictable, it might be best to go with a company that offers a set fee rather than one that bases its fees on your earnings, especially if you make a good sum of money. You should be able to choose between weekly, semi-monthly, or monthly billing.
Spend some time looking into companies. There is a good chance that you know people who can recommend one company over another; learn from their experiences. It won’t be difficult to find out which firms to watch out for. You can also ask the company about their current clients and ask for testimonials. A good sign of stability is length of time in business and good references.
One thing that most freelances look for in a company is customer service and ease of use. Find out if you can submit timesheets online, as well as claimed expenses. Look for “money back” guarantees so that you have an out if you are not satisfied. Also, find out what their response time is to questions. You don’t want to be held up waiting to hear back from a company for days; you are looking for continuity and don’t need any unnecessary delays.
Depending on your particular circumstances, how a company pays could play a major role in choosing an umbrella company. Ask if they pay using FPS, C.H.A.P.S., or Bacs. If they use Bacs, you will have to wait days to be paid, but if they use FPS or C.H.A.P.S., you will receive payments in just one day as they use a same-day bank transfer, while Bacs is not an instant transfer of funds.
Last, but certainly not least, make sure the umbrella company is a member of a professional body like Professional Passport, SPA, or AEMC so you know they are compliant. Most umbrella companies provide professional indemnity, employer’s liability, and public liability insurance as a part of their service, but ask to be sure. If they can service your needs and provide these assurances, they should be a good match for your business.
Tags: Business, freelancing, small business, Taxes, umbrella company
Posted in Taxes · September 4th, 2010 · Comments (0)