Do it Yourself Bookkeeping is Perilous For the Untrained Bookkeeper.

As a business owner, you may decide not to use a bookkeeping service or elect not to use a Quickbooks Proadvisor Team, or in-house accounting department. It may seem that you have saved money by having a family member do the company's books and pay the taxes to the government as they come due.

However, it must kept in mind that when capital is needed and your company tries to obtain a loan, banks insist on detailed financial records. This is frequently when problems arise. If one does not have electronic records or financial statements have not been accurately prepared, the bank is more likely to lose faith in the applicant's claims of solvency and deny the company credit.

The Internal Revenue Service conducts audits. Small Business owners who are not using software such as Quickbooks have a harder time defending their deductions as computerized records are not available. Misclassified transactions on tax returns result in deductions being forfeited, and back taxes being owed. This can ruin a good credit rating, and possibly result in hardships which could easily have been prevented by a qualified bookkeeper managing the account.

Outsourced bookkeeping is a cost effective solution in many cases. Transactions are properly categorized. Relationships are not put under strain by having spouses doing the bookkeeping. Money is saved as vendors tend to be 30 percent less expensive than an in house bookkeeper who is paid benefits as well as a salary.

Outsourcing to a qualified accounting professional provides peace of mind, as that professional will be there to prepare for any audits. Transactions under scrutiny are explained to the government. Professional advice is dispensed to provide for better bookkeeping, in a manner that is cost effective and in accordance with accounting principals and standards.

About the author: Matthew Beck is the owner of M.Beck and Associates located at the Omni Park Office Plaza in Euclid Oh http://www.outsourcedbooks.org/

M.Beck and Associates provides bookkeeping services on a nationwide basis.

 

» left by Dean Allan from Gawler, Australia (1 year 316 days ago.)

I am reading your article with interest from Australia and it is so refreshing to see there are people in other parts of the world making sensible suggestions to business owners.

 

When you take into account the errors made to financial records by untrained employees (or worse, family members who have no idea on how to collate financial data correctly) in some type of attempt to keep costs down it is frightening.

 

A fully qualified bookkeeper is essential to any business hoping to drive their profits up - it is the only way you can be confident of the integrity of your financial data.

 

Dean Allan

MYbookkeeping Services

Gawler, Australia

 

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» left by matthew from Euclid (1 year 315 days ago.)

Financial records that do not tie out to other business statements-Bank,Credit Card,Loans and others are scary-especially in the event of an audit, as an undefendable deduction is revealed, repealed, and replaced with penalties and interest.

Ownership should understand it is more expensive to repair the damage,than to have it done right to begin with.

Matthew

M.Beck and Associates

Cleveland Ohio

Is Gawler in Victoria ? My family lives in Queensland

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