Don’t Do the Math: 5 Reasons Outsourced Bookkeeping Services are the Right Choice for Your Business

Published on: 25 December 2018 Last Updated on: 08 August 2019

Every business owner is faced with the challenge of knowing when to outsource and when to hire in-house.

With most business tasks, this depends on many different factors. But when it comes to accounting, it’s always better to outsource.

In this guide are five amazing benefits of outsourced bookkeeping. Read on to see why you should outsource bookkeeping services.

1. Increased Privacy/Security:

Due to the sensitive nature of financial documents, and the wide array of legal issues that result from improper bookkeeping, your accountant must be extremely trustworthy. If they do you wrong, it could completely destroy your company.

This is doubly true of in-house accountants. As they are a member of your own staff, you are held accountable for any mistakes they make.

But when you outsource your bookkeeping, this burden of accountability is outsourced as well. Since the accountant belongs to a separate company, any mistakes or intentional misconduct they make is on them, not you.

Plus, when you outsource, there’s far less chance of misconduct happening regardless. The stakes are much higher for outsourced accountants than for in-house ones.

For an in-house accountant, bookkeeping is just a job. They might leave for a better one at any time. They aren’t necessarily all-in.

But a third-party accounting company is. If they don’t provide you with competitively superior accounting service, they’ll go out of business.

2. Peace of Mind for Everyone Else:

When you do your own bookkeeping, you have exclusive control of your company’s secret financial records that no one else is allowed to see. Understandably, this makes clients and tax agencies nervous.

How do they know you’re not fudging numbers and manipulating the records for selfish gain? They’d have to just take your word for it. And that’s not very reassuring.

But a third-party accountant has zero incentive to bookkeep dishonestly. And since the accounting is done off-site, no one at your company will even have access to edit or share this information. So there’s no reason for anyone to question the accuracy or integrity of their accounting.

3. No Training, No Management, No Turnover:

Your outsourced accountant requires no recruiting, no training, and no management from you, ever. That’s all taken care of by their company.

It’s true, however, that you’ll still have to scout for the right accounting company for your business. But it’s much less involved than the typical hiring process. Here’s more info on that.

Best of all, you’ll never have to worry about turnover. This is a really, really huge deal when it comes to bookkeeping. Have you ever considered what happens if your in-house bookkeeper quits without any notice whatsoever?

Accounting is essential. It’s not something you can put on hold until you hire someone else (which can take a really long time). Who will take care of it in the meantime?

If you outsource, you won’t need to answer these questions. Even if the accountant assigned to your case abruptly quits, there’s an entire team of qualified accountants ready to replace them.

4. Keep Your Focus on Your Business:

You heard us right. When you outsource, you won’t have to recruit, manage, or rehire accounting staff, or do your own accounting, ever again. It sounds like you just got a lot more time on your hands.

What will you do with it? You’ll do what you do best, of course. You now have all this extra time to invest in your business where you’re needed the most.

5. Upscale or Downscale With Ease:

Outsourced accounting is as big or as small as you need it to be. It will more easily upscale or downscale with you as needed than in-house accounting staff.

There won’t be any hiring or layoffs of accounting staff when your company rapidly changes size. And they don’t take up any space in your office, so space restrictions won’t be an issue, either.

Get Outsourced Bookkeeping For Your Business:

It’s now plain to see that outsourced bookkeeping is the best option for any business. Outsource your bookkeeping to reap these great benefits.

Get more financial tips for your smoutsourced bookkeepingall business right here. Read about six loan mistakes every business owner must avoid.

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Crucial Aspects To Bear In Mind When Selling Your Business

Nobody likes to give up their hard-earned business at once. Sadly, unforeseen situations often compel us to give away our treasured organization. Now, the matter is which factors compels you to sell your business. If the profitability of your business falls drastically. The second important reason is if your experienced buyers show red flags. The third and most important reason is perfect competition in the market. As we know the reasons for selling a business, it is important to know certain steps to help you get its right value after selling. The first step is to know the valuation of your business as per the current market rate. The second step is due diligence as well as financial trends. Knowing The Worth Of Your Business: What It Takes? Several factors help you know the real worth of your business. It's not something Google or Wikipedia will tell you. Check out some of the key factors that you should consider while bringing out the best worth of your business:- 1. Book Value Of Your Business Take your total assets and subtract it from your total liabilities. It is one of the most straightforward approaches you can adopt to trace the correct valuation of your business. You can get the data of your business valuation directly from your accounting / record-keeping books. However, it works like a summary of your business valuation. The only limitation of this process is that you cannot get any future data on your revenue and earnings. It will give you a fair idea of the current valuation of your business as per the current market scenario. 2. Make Cash Value Analysis If you understand your cash flow analysis correctly, you will consider the current and future potential earnings. Furthermore, it is also possible to measure the valuation of your business for a specific period. Additionally, selling your business is not difficult if you follow the correct process. Now, if you do not have clarity regarding the terminologies of cash flow analysis, seek the help of online accounting software. There's a higher probability of using a financial planner that can assist you in accurately preparing this business valuation. 3. Consider Using a Revenue Multiplier This is less sophisticated but still an effective tool for quickly determining a company's potential value. The winning secret? It multiplies your company's current sales with multiple scores. Let's get this concept clear with the help of an example. A company with a value of $200K annual sales with a multiple of 5 will be worth 1 million. So, the more an investor becomes confident about the ROI, the more valuable your company will be. The multiple that you will use will depend on several factors such as:- Competition in your industry. Market potential. Timing of your business. The power of your management team. 4. Earning Multiplier The price-earning ratio is one of the best formulas to understand your business's valuation. Here, the Price Per Share method is widely leveraged. First, divide the current market trading price by earnings per Share. After this calculation, there's a tentative understanding of the net profit earned by the company. The rule here is if you get higher EPS, your company has a higher valuation. Ultimately, the company's current share price will highlight your company's position in the stock market compared to your competitors. 5. The Tax Implications Assessing the tax implications of selling a business is also a crucial stage. The structure of your business will help you determine its valuation. It will determine the tax responsibilities you will face after concluding the sale. Your business's overall tax liability will be determined based on the nature of the business assets and the method of sales you want to employ. Additionally, you can seek the help of a proficient tax consultant to get the correct value for your business taxes. Steps For Preparing Your Business For Sale You need to follow some simple steps to prepare your business for sale. Some of the crucial steps that you must consider here are as follows:- Determine your objectives and goals for your sale. Identify where your business stands today in comparison to other companies. To get the correct value of your business from the buyer, you must compare your financial goals. Identify whether there exists any mismatch between the valuation and the goals of your business. Collect all your diligence material. Identify who all are your potential bidders. Optimizing your business for sale not only aids in attracting qualified buyers but also positions you to achieve a higher sale price by presenting your business as a well-organized, profitable entity with transparent operations and a solid financial footing. Identifying The Right Buyer For Your Business There are some of the simple steps that you need to employ to find the right buyer for your business. Some of the key factors that you must take care of here are as follows: 1. Determine The Profile Of Your Buyer Before you search for your potential buyer, it is important to understand the ideal buyer profile. It includes several factors, like financial resources, management style, and industry experience. These are some of the crucial factors that you must consider before selecting your business buyer. Your business buyer needs to understand the real value of your business both in monetary terms and reputation-wise. This will make things easier for you. 2. Conduct Market Research To Find Potential Buyers You need to conduct market research to identify your potential buyers. Here, you have to compare the rates different buyers offer you. Select the best bid that suits your business valuation. Some businesses employ mergers and acquisition techniques to get the best buyers for their organization. It includes the private equity groups that help you select the best buyer for your company. Private equity groups are categorized as industry and subsectors. 3. Consider The Budget Of Your Buyer Different buyers have different budget limitations with them. Now, you must calculate the valuation of your company first. After that, you can review your buyer's budget. The budget that matches your business valuation will be your buyer. Therefore, you must understand your buyer's budget constraints to select the right buyer for your business. Sometimes, businesses opt for an auction process to make the sale for their business. 4. Evaluate The Bids From Interested Buyers Once you have evaluated the potential buyers or attracted the potential buyers, It is essential to evaluate each bid and negotiate the terms of the sale. The business selling process is a lengthy method. It takes a complete evaluation of the process to get the right value for your business within a particular time. Here, proper planning of the bids matters a lot. Thus, you must be careful and select the best bid. This is why finding the right buyer for your business ensures a smooth handover and contributes to the business's long-term success and growth under new stewardship. Final Take Away Hence, if you want to sell your business, then the correct valuation and the right selection of buyers are important. Selling your business is a heartbreaking process. If you can control your emotions and fix the right valuation of your business, then you can get the right value. You can use the money to set up another business, which could be a better option. Now, you can share your opinions and comments with us in our comment box. This will help us to know your take on this matter. Additional Reading: How To Sell A Small Business Without A Broker? Tax Implications For Independent Event Planners Choosing The Right Business Insurance Agent In Illinois

Defending Your Modern Company Through the Use of Threat Intelligence

Our society has seen a significant shift throughout the past decade, as the Internet and other technologies have become more essential to our society than in previous eras. In 2020, the web has become imperative for communication, media consumption, and numerous other entities that have enabled our society to undergo a dynamic transformation. There has been a digital revolution in the past 10 years, as numerous elements of our society have been revolutionized. One sphere that has had one of the most significant digital revolutions has been the economy, as the web and other technologies have impacted it so immensely. There has been a myriad of changes that our global economy has experienced due to the rise of the web, and one of the most overt has been the increasing threat from hackers and other cybercriminals. Cybercrime has become a major problem for companies throughout the globe, as the threat of data breaches and other online attacks has become more relevant. Utilizing the top cybersecurity measures is now critical for all modern companies, and learning how to protect your business is crucial. One of the most effective cybersecurity measures is threat intelligence, and understanding this facet of online protection is essential to the success of your company. Defending Your Modern Company Through the Use of Threat Intelligence: Outlining Threat Intelligence There are numerous challenges of operating a modern enterprise, and one of the most ubiquitous issues is cybersecurity. Investing in threat intelligence is one of the most proactive steps you can take towards safeguarding your business, and learning about it for your company is imperative. It is an aspect of cybersecurity where a multitude of data is analyzed and examined to figure out potential issues for your business. It aids in creating informed decisions and helps to eliminate many data breaches by implementing high-quality solutions. Threat intelligence is composed of tactical threat intelligence, operational threat intelligence, strategic threat intelligence, and technical threat intelligence. Having these four elements work in tandem to create a diverse approach to mitigating cyber threats will ensure that your business is protected. Practical Uses of Threat Intelligence Understanding why your business needs threat intelligence protection is important, but learning how to effectively implement it into your business model is more essential. Threat intelligence aids in stopping data loss by finding and reporting security threats before they become more serious. It also aids with direction by identifying potential threats and learning how to safeguard against them for the future. Finally, the most critical element of threat data is that helps to inform open source IT communities online about possible warnings. This ensures that the entire web community is aware of these warnings and has information on how to protect themselves from these risks in the future. Final Thoughts There are numerous challenging elements to having a top-quality company in the modern era, and cybersecurity is one of the most difficult. Learning how to eliminate threats through the use of threat intelligence and understanding how to keep your business safe is essential for a 21st-century enterprise. Read Also: Digital Services Offered Online How a B2B Payment Solution Can Aid Your Ecommerce Company?

Business Insurance Covering Tree Trimmers: Insurance Policies You Need To Know

After the pandemic was under control, one business industry started flourishing, the Tree Trimming business. But, unfortunately, the trees and other plants that were left to grow during these past eighteen months have now started causing problems for people. A few entrepreneurs were able to see this marketing surfacing up and started planning to launch a tree trimming business. However, you must understand that this business is different from the other businesses and needs extra care to succeed. While starting the tree trimming business, there is an area where you need to invest more of your time. We are talking about service insurance policies. The tree trimming business is a different kind of business and potentially one of the dangerous jobs there. Hence, you must select the right business insurance policy to protect your business from any catastrophic event. What Are Business Insurance Policies? A business insurance policy is a way to guard your business against any uncertain losses. Of course, the losses we are talking about here are not the business losses but the losses that accrue during the regular course of business. There are different types of insurance policies. Depending on your business structure, different policies might be applicable to your business. This insurance covers property damage, equipment damage, legal battle, and employees oriented risks. Types Of Tree Trimmer Insurance Policies There are multiple business insurance policies. Depending on what type of business you have, the policies integrated with your business might vary. To understand which tree-trimmer-insurance is the best for your tree trimming business, work with your insurance agent. Here are a few insurance coverage options that your agent might recommend to you. 1. Professional Liability Insurance Professional liability insurance is commonly known as Errors And Omissions. This insurance protects the business from any false claims against your services. If you are going to have a tree trimming business, this business insurance policy is important to have. Professional Liability insurance will cover the damages that might be accrued during your work. This really helps you work at ease, knowing that any damages sustained will be recovered. 2. Commercial General Liability Insurance General liability insurance is the most basic insurance policy; almost every business has this insurance policy. However, if you really want to protect your business, you must have commercial general liability insurance. In fact, this type of coverage policy is significant if you're dealing with the customers. The Sad truth of today’s society is that you cannot trust anyone. Hence, having this insurance coverage protects your business from any unnecessary lawsuits. General liability coverage is designed to protect your tree trimming business from my thyroid-party claims. For instances: Property damage. Damaging the job site. 3. Commercial Auto Insurance Commercial auto insurance acts as your personal car insurance. This ensures that if your vehicle is damaged while offering your services, you can claim the damage from the insurance coverage. However, this insurance policy covers only commercial vehicles, such as cars, trucks, vans, and other motor vehicles used in the tree trimming business. However, there are some instances where the personal car also gets covered while they are used during the business process. Therefore, commercial auto policies are written higher than personal policies assuming that the damage accrued will be more than normal. 4. Commercial Property Insurance A property insurance policy safeguards your business from any damage done to the building while offering services. The insurance also covers the loss of income and even increases the expenses that result from property damage. Any damage to the business property would not be covered under the general liability. This is where the Commercial property insurance policy helps you. It gives protection to all physical parts of your business. 5. Worker’s Compensation Insurance Worker’s compensation insurance intends to protect the business and business owners from the employee's claims. This usually happens when the employees are injured, dividing the business hours and want compensation from the employer. All states require worker’s compensation insurance policies from the businesses, but the requirements might vary depending on which start you carry on your tree trimming business. For instance, some estates ask the businesses to mandate the worker’s compensation policy, while others give the owner discretion not to have until a set number of employees is reached. Considering the risk associated with the tree trimming business, we recommend that you carry worker’s compensation insurance for your business. FAQs (Frequently Asked Questions) We understand that no matter how much we talk about the business insurance policies, there will always be some unanswered questions. Therefore, we have taken this opportunity to curate those questions and answer them all. Q1: Are Insurance Important Before Starting The Business? Yes, you should invest in coverage policies before you can interact with your customer. Although the cost of business insurance might seem high, it is the best way to protect your business in the long run. After all, you cannot buy insurance to cover up all the damages after the event has taken place. Q2: Will Business Insurance Protect Your Business From Everything? Business insurances are ways to protect your business from the social lament of society. But, it doesn’t completely protect your business from everything. There are certain exceptions that might directly be written in the policy. However, do that only after consulting your business lawyers and policy in-depth to avoid any blind spots. Q3: Difference Between Business Insurance & General Liability? The difference between the two is clear as day. One is an umbrella term used for all types of business insurance, while one is a type of business insurance. Business Insurance is a generic term used to define all types of insurance coverages a business needs. In comparison, General Liability is a specific type of coverage a business needs to protect its assets. Take Away It is important to find the right insurance professional to help you guide through the complexity. You must understand that you might be an expert in business operation, but insurance policies are different. To learn more about tree trimming business insurance requirements and the cost associated with the services, reach out to us today. Read Also: Why You Need Classic Car Insurance? Four Different Types of Insurance Everyone Needs Steps to Take After Being Involved in a Ridesharing Accident

Don’t Do the Math: 5 Reasons Outsourced Bookkeeping Services are the Right Choice for Your Business

1. Increased Privacy/Security:

2. Peace of Mind for Everyone Else:

3. No Training, No Management, No Turnover:

4. Keep Your Focus on Your Business:

5. Upscale or Downscale With Ease:

Get Outsourced Bookkeeping For Your Business:

It’s All in Your Head: Do You Have the Right Mindset for Business?

6 Shameless Examples of Product Placement in Movies We’d Like to Forget

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Crucial Aspects To Bear In Mind When Selling Your Business

Defending Your Modern Company Through the Use of Threat Intelligence

Business Insurance Covering Tree Trimmers: Insurance Policies You Need To Know

Don’t Do the Math: 5 Reasons Outsourced Bookkeeping Services are the Right Choice for Your Business

1. Increased Privacy/Security:

2. Peace of Mind for Everyone Else:

3. No Training, No Management, No Turnover:

4. Keep Your Focus on Your Business:

5. Upscale or Downscale With Ease:

Get Outsourced Bookkeeping For Your Business:

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It’s All in Your Head: Do You Have the Right Mindset for Business?

6 Shameless Examples of Product Placement in Movies We’d Like to Forget

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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All Comments

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Follow Us

Recent

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