The Importance of Professional Bookkeeping for Entrepreneurs

Being an entrepreneur is not easy. You must be a multitasker, handling various tasks and functions simultaneously. One of the most crucial tasks is keeping track of your finances, not only to know your profits but also to plan for business continuity and growth. An essential aspect of managing finances is keeping a record of day-to-day expenses. While ensuring that your accounting records are up-to-date is vital, it can also be time-consuming, expensive, and non-value adding.

What is Bookkeeping?

In simple terms, bookkeeping is the process of maintaining a record of all financial transactions and information related to a business on a daily basis. It ensures that all records of individual financial transactions are not only correct but also comprehensive and current. Therefore, accuracy is vital to the overall bookkeeping process.

What Does Bookkeeping Include?

Bookkeeping services generally include the following tasks:

Setting up the chart of accounts (COA)
Maintenance of the general ledger
Invoice and bill entry
Posting payroll entries
Inputting banking details
Allocating entries to their appropriate account heads
Entering details of credit card statements and bank accounts
Bank account and credit card reconciliation
Month-end or year-end closing

Why Outsource Bookkeeping?

1. Cost Reduction

By utilizing external professional bookkeeping services, you can reduce your bookkeeping expenses by 30% to 40% compared to maintaining an internal team.

2. Additional Savings on Recruitment

With professional bookkeeping services managing your daily activities, there is no need to search for and employ a professional bookkeeper, adding more value to your overall savings.

3. Automation

Technologies like Robotic Process Automation (RPA) and Artificial Intelligence (AI) are transforming bookkeeping. Automation can reduce human effort and errors by almost 90%. For example, using Optical Character Recognition (OCR) technology can extract information from transaction receipts and vendor bills, uploading it to cloud-based bookkeeping software, ensuring accuracy and security.

4. Team of Experts

External services provide access to a team of expert professional bookkeepers. Leading accounting firms often choose these services to handle crucial, value-added bookkeeping tasks.

5. Technical Expertise

Professional bookkeeping service representatives are highly trained and knowledgeable in various accounting software, leading to faster processing times and eliminating the need for training.

6. Flexible Pricing

The pricing for these services is typically flexible and tailored to your company’s requirements, saving you from additional costs on different software and resources.

7. Complete Support

External service providers can operate 24/7, enhancing convenience and processing times, allowing tasks to be completed more quickly.

Conclusion

If you’ve been struggling to manage your finances or spending hours on bookkeeping, let our team of experts save you time, effort, and money while minimizing your financial pressure. Experience the professional bookkeeping services you’ve been looking for!

For more information, visit 1Point1.

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