There are a number of options a business has when it comes to choosing between various bookkeeping services and doing it on your own. Not only do you need bookkeeping services for filing your income tax returns, but you also need them for maintaining your financial records. If you decide to undertake this task on your own, you should bear in mind that any erroneous files or incorrect data could result in huge penalties imposed by the IRS. There are different ways a business can maintain its financial records. It can hire an in-house bookkeeper or outsource the task to someone.
Either way, you will need to look for a reliable and good bookkeeping service. These days, you can find a plethora of options at your disposal, which can make things quite confusing. Luckily, there are some qualities that set apart the professional services from others. What are they? Read on to find out:
Quality 1: Tech Savvy
Software is becoming increasing useful and important for managing your finances nowadays. Everything is going digital, which means you need to use a bookkeeping service that can keep up with the tech. QuickBooks has become a popular way of maintaining books and hiring a service that uses it can save you time and money. While a number of services will claim they know how to use accounting software, you should ensure they understand all functions and features like accounts payable and accounts receivable and bank reconciliations amongst others. You can consider this cloud bookkeeping Singapore service; it is reliable.
Quality 2: Analytical
Good bookkeeping services have accountants who can analyze your business’s financial information and reports and relate their conclusions to you. They should be able to think about the ‘what-if’ scenarios to help the business in staying prepared. For instance, a good service will be able to guide you about the areas of your business where you can save costs and use resources in a more efficient way.
Quality 3: Detail-Oriented
It is vital that the service you are considering is thorough and pays attention to every detail. For instance, when a sale is made, they should be able to keep track of the customer, the terms of the sale and how it needs to be documented.
Quality 4: Know Tax Basics
While they don’t have to have the Internal Revenue Code memorized, they should have some tax knowledge because you will need to file appropriate tax returns. You don’t want to go around looking for a tax preparer as it is immensely time consuming. Moreover, it could also complicate things as you have to discuss things with two parties instead of just one. Therefore, look for a service that can not only do your books, but also help with your taxes.
Quality 5: Accessible
You want a bookkeeping service you can contact whenever you see an issue or problem. They have to be accessible for this purpose and should be able to provide you the assistance you need. A service that’s not available when you need them is of no use to you.