There are a number of opinions when it comes to choosing between bookkeeping services and doing it on your own. Bookkeeping services are not only required for filing your income tax returns but these are also needed for maintaining your income records. You may hire a tax preparer or tax accountant to prepare your income tax return files but any missing record or incorrect data would end up in erroneous files and huge penalties by the IRS.
There are different ways to maintain the record of your business. Some people choose cloud storage services for keeping their data safe. Some people prefer in-house bookkeeping services by hiring a bookkeeper to take care of bookkeeping digitally or use conventional methods of maintaining paper files.
No matter which bookkeeping method you choose, you will need a bookkeeper to maintain your business records for several reasons. Firstly, many people make mistakes in their income tax return files by misunderstanding deductions, investments, and treatments. This type of mistake is mostly committed when incorrect data is entered from initial bookkeeping services. On the other hand, a professional bookkeeper has dependable and authentic information about categorizing different types of incomes.
Secondly, mathematical or calculation mistakes are made even when using income tax calculator. Such mistakes may occur not only in income tax forms but also in weekly, monthly or annual business reports. Mathematical or calculation based errors are also made due to wrong entries or incorrect categorization of business records in the books.
Now the question here is that do small businesses also need bookkeepers? A majority of the big businesses take the burden off their shoulders by hiring professional bookkeepers. We believe that small businesses are always in the stage of constructing bigger rooms in the market and growing their customer base. These businesses require more attention and investment than big businesses. You would not want to make the taxman frustrated or angry and you should not forget that even if the business gains were low or negative this year, you still have to file for income taxes. In short, small businesses should not just rely on small business accounting software and should invest in professional bookkeeper to save on income tax returns.
Now when you have decided to choose a good bookkeeper for your business, here are the essential qualities to find a good bookkeeper you can really rely upon.
As you are going to hand over your business record matters to someone else, it is important for the bookkeeper to be competent and reliable. Bookkeepers do not need to hold CPA accreditation but they should hold a degree in accounting and finance from a reputed institute or university. In order to choose a professionally competent and reliable bookkeeper, do some general inquiry about their reputation. Furthermore, ask them general questions about taxation and record keeping and analyze the approach they use to practically complete their jobs.
Professional competence can also be assessed by estimating their interest and passion in bookkeeping. As a ground reality, bookkeeping is a boring job and people in this business for a few years may start losing interest. A job done without interest leads to imperfections in results. The passion of bookkeeper can be judged in several ways. Interesting and passionate bookkeepers will ask questions about your business, tell about their personal techniques of work, and talk about the most modern trends in bookkeeping. You can also track the record from the International Association of Bookkeepers.
Poor communication between team manager and bookkeeper may end up with chaos in books. It is highly important for bookkeepers to be good communicators so that they not only establish free flow of information but also become team-workers. Assessing communication skills of any person is not that tough. Apart from language, tone, and expression, also look at the body language of interviewees.
Bookkeeping services are shifting from paper files to computer based information systems. There are many small business accounting software programs which people use to keep the record of their businesses. Good bookkeepers are not only efficient in software and computer but they are also willing to take on modern technology. Even if you keep the records in paper libraries, yet there are pretty good chances to shift to computer generated programs for bookkeeping in the long run.
These are the basic requirements to choose a good bookkeeper. Furthermore, you can analyze the performance of bookkeeper and mould it according to your own needs but if the bookkeeper shows quality in following characteristics the there is no requirement to find another bookkeeper.
Resourceful – The bookkeeper must be resourceful and should know the tactics of resolving financial issues.
Updated – Successful and reliable bookkeepers keep themselves well-informed and updated. They keep notes about changes in bookkeeping and taxation laws.
Honest – Reliable bookkeepers are those who keep you well-informed about financial complexities. Since you are not as much aware of bookkeeping as they are, they must inform you about problems, complications and chances to resolve the problems. Alarm bells must ring if they show ‘I can do everything’ attitude.
Professionally and Industrially Active – Don’t be afraid if your bookkeepers maintain contacts within the industry. Fear may not stop them from leaving your organization but it will definitely stop them from updating their knowledge and information. Professionally active bookkeepers are those who maintain good relations with their colleagues and keep you updated about their job or any upcoming financial crisis.
Client and Work Focused – There are two types of bookkeepers. The first kind is of those who are more focused on pleasing the clients irrespective of profits and losses and the second kind is of those who maintain a balance between client and work. If you want to take your business higher simply by investing in a good bookkeeper then prefer those bookkeepers who maintain balance between client happiness and their work. They should keep suggesting new ideas to the clients and mention the possible pitfalls of a decision made by the client i.e. they should be dedicated.
Finding a good bookkeeper helps you save a lot not only on payments made to tax preparers and tax accountants but also by increasing your income tax returns. If you want to get reputed bookkeeping services then Tax Professionals is a trusted name here for you. Apart from bookkeeping services, we also provide suggestions and advice on tax preparation, income tax filing and business record keeping. We make bookkeeping and tax preparation your cup of tea.
E WATERS