Should I be doing my bookkeeping myself?

Should I be doing my bookkeeping myself?

Many business owners ask themselves “Should I be doing my bookkeeping myself?”, this is a very important question and you should be considering all of your options.

The 1st question I would suggest asking yourself is, Is doing the bookkeeping yourself really the best use of your time? Truly when it comes to YOUR business you need to spend your time focusing on your clients, growing your business, and taking your company into the future, if doing the books takes you away from any of these items you should consider hiring a bookkeeper.

The next question you should ask yourself is Do you have the knowledge to even do the bookkeeping? This is not an insult on your intelligence it is taking the time to make sure you can get the correct information from your Bookkeeping when it is needed. Although bookkeeping / accounting software’s help walk you through starting your books the knowledge of how to ensure they are setup correctly can be confusing. If you are not recording accurate information then your bookkeeping is rendered incorrect which may lead to problems with your taxes and growing your business.

Software…. Choosing a bookkeeping software can be quite the chore but here at A.S.Bookkeeping, LLC. we like to suggest our clients use QuickBooks. Many of our clients have to come to us and have already started using QuickBooks which is great but while helping clients out we often hear “Oh I didn’t even know you could do that” often times clients are using some other programs or applications and are paying additional money for something that their QuickBooks can already do for them. On the other hand there are also other programs and applications that are supported by QuickBooks that can help your business save time and money by simplifying processes so that you can focus on your business and not the books.

Consider taking a few minutes to calculate how much time your spending on your bookkeeping each month and multiply that by your hourly rate / average party income in hours; You could be losing money by spending time doing the books and not conducting business!

One final thing to consider is are you losing family time because you need to do bookkeeping instead? We are all trying to strive to find balance between work and family and your bookkeeping should not take away from family time because that is time you cannot get back.

Bookkeeping is important, please do not ignore it! We at A.S. Bookkeeping, LLC. would love the opportunity to assist you with your bookkeeping needs and finding a system that works best for you and your business.

To contact us you can complete the below form or email us at amy@as-bookkeeping.com

[contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]

Quick Tip- Quickmath Calculator

http://www.fishbowlinventory.com/infographics/quickbooks-tips-four-july-17-2012.html

http://www.fishbowlinventory.com/infographics/quickbooks-tips-four-july-17-2012.html

Reconciliation (Term Tuesday)

Reconciliation aka Balancing the Check Book

Definition

Investopedia defines Reconciliation as “An accounting process used to compare two sets of records to ensure the figures are in agreement and are accurate. Reconciliation is the key process used to determine whether the money leaving an account matches the amount spent, ensuring the two values are balanced at the end of the recording period.” http://www.investopedia.com/terms/r/reconciliation.asp

If you use a Bookkeeping software you most likely enter the transactions that go through your bank account or credit cards into the software but just “Entering” those transactions does NOT mean you have reconciled your account most bookkeeping software’s have another area in which you compare your accounts in two different forms to make sure everything has been entered at the end of each month! If you have not been completing this second area of reconciliation you might want to contact a bookkeeper to help you to actually complete your Reconciliation’s.

 

bank-building-icon

Organizing Your Office Can Greatly help with your Productivity

Organizing might not be your TOP priority when it comes to your business but taking the time to organize your office may just help your productivity level more than you could imagine.

I found this great article with 25 Office Organizing Tips that everyone can benefit from doing. Here is a summary of the tips provided by “Business Know How” you can find the full article at http://www.businessknowhow.com/manage/getorg.htm

  1. Clean out each desk drawer, to free up even more valuable storage space.
  2. Clear off the top of your desk, then wipe off the surface of the desktop.
  3. Keep essential items on your desktop (computer, phone, fax, card file).
  4. If you work with more than one person create an in box for each person.
  5. Have a master to-do list for each day at your desk.
  6. Pre-Sort the mail.  To-File, To-Read, To-Contact(write or call).
  7. Use a variety of containers to organize office supplies, paper clips and pens.
  8. Use a variety of desktop organizers or trays to organize papers that come across your desk.
  9. Create a separate drawer for personal paperwork, items, etc.
  10. Use storage boxes to store dated files.
  11. Purchase Magazine boxes to store booklets, magazines, catalogs you want to keep.
  12. Create a file for magazine articles or scan them into your computer.
  13. Filing system should be simple easy and manageable
  14. Color-coding your files makes it faster to find information.
  15. Do not over stuff folders.  It may be time to toss some of the information in the folder .
  16. Never overload filing drawer.  It will make it difficult to retrieve information in the drawers.
  17. Sub-divide larger files with interior file folders.
  18. Tab hanging file folders in the front.
  19. Return calls in batches.  Leave specific messages and the time you called if the person you’re trying to reach isn’t available.
  20. Empty workspace of everything but the project you’re working on to cut down on distractions.
  21. Keep an assortment of all-occasion cards and stamps in your desk.
  22. Keep takeout menus from favorite restaurants so you can  order ahead and pick up dinner on your way home.
  23. When using more than one checking account, color coded checks are an easy way to identify each account.
  24. At the end of each project or event, organize paperwork and file or store it.
  25. Straighten desk at the end of the day and especially at the end of the week so that you can start each morning with a clear desk.

The above information was obtained from http://www.businessknowhow.com/manage/getorg.htm!

file boxes

 

 

Did you Know… “Bookkeeper” has 3 consecutive double letters

Bookkeeper

6 Things about Money You May Not Think About BUT should!

Here is a great article from Entrepreneur Magazine on  6 Things about Money You May Not Think About BUT should!

Click here to read the full article http://www.entrepreneur.com/article/225377

Key Points in the Article

1. Protecting your personal credit rating.

2. Diversifying your portfolio.

3. Choosing the right business entity.

4. Discussing finances regularly with your spouse or partner.

5. Keeping personal credit cards out of your business.

6. Aligning your salary with your business cash flow.

dollar sign

If you do what you have always done, you will get what you have always got. -Mark Twain

If you do what you have always done, you will get what you have always got. -Mark Twain

If you do what you have always done, you will get what you have always got. -Mark Twain

3 Things to Consider Before Your Business Donates to Charity

Throughout the year we as business owners and individuals are often approached by others about donating to Charities,  do you every questions if you should donate or do you just “Write the Check”…?

Here is a great article from Entrepreneur Magazine of 3 Things to Consider Before Your Business Donates to Charity http://www.entrepreneur.com/article/225130

Charitable Contributions

Cost of Goods Sold (Term Tuesday)

Cost of Goods Sold aka COGS or Cost of Revenue

1st of all please remember Cost of Goods Sold does not apply to just product based companies if you provide a Service you will have cost of services provided as well!

Definition

  1. Investopedia defines Costs of Goods Sold as “The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs. COGS appears on the income statement and can be deducted from revenue to calculate a company’s gross margin. Also referred to as cost of sales.” http://www.investopedia.com/terms/c/cogs.asp
  2. QuickBooks Help defines Cost of Goods Sold as “The Cost of Goods Sold account is added to your chart of accounts the first time you add an inventory item. QuickBooks uses this account to track how much you paid for goods and materials that were held in inventory and then sold. While an item is held in inventory, its value is tracked in the Inventory Asset account, which is also added to your chart of accounts when you create your first inventory item. As soon as that item is sold using an invoice or sales receipt, its value is taken out of the Inventory Asset account and put into the Cost of Goods Sold account.”

For a service based company a few items that might be included but not limited to in your COGS account could include materials used to provide service, direct labor, subcontracted labor and commissions.

http://www.as-bookkeeping.com

Here is a link to brief informational video on Cost of Goods Sold by Investopdedia:

http://www.investopedia.com/video/play/what-are-cogs/

COGS

 

A mediocre person tells. A good person explains. A superior person demonstrates. A great person inspires others to see for themselves.” Harvey Mackay

"A mediocre person tells. A good person explains. A superior person demonstrates. A great person inspires others to see for themselves."