If you’re a small business owner, you’d likely agree that wearing multiple hats leaves little time for bookkeeping. Your plate is already overflowing with responsibilities, but if your books are neglected, it can end up harming your business down the line. With this in mind, it’s no wonder why you’re on the hunt for a trusted bookkeeping service.
But before you make your selection, it’s important to vet your options for a few must-haves. A positive track record, specializations that match your business, and a full-range suite of services are all signs of a bookkeeping service worth looking into.
Here at NorthStar, we’ve been delivering outsourced bookkeeping services for over a decade, helping small business owners escape the stress of DIY bookkeeping and enable smarter decision-making. Not all companies can afford an in-house bookkeeper, which is why we’re leveling the playing field for bootstrapped businesses that don’t have massive labor budgets.
Get our tips on vetting bookkeeping services, and if your small business is considering an outsourced option, don’t hesitate to reach out to the team at NorthStar.
Bookkeeping Service Must-Haves
Running a small business is no simple feat. Between managing operations, employees, and scaling up, business owners often let bookkeeping fall through the cracks – which can risk potential fines come tax season and harm your decision-making process. Decisions need to be made based on precise, accurate data, after all.
In this way, bookkeeping is the foundation of your business’s financial health. Sloppy books can quickly lead to missed tax deductions, late payments, and a lack of cash flow transparency, highlighting the need for an outsourced bookkeeping service. It’s an especially smart move for small business owners who don’t have the time to handle their own books and would rather escape the stress of DIY bookkeeping.
However, not all bookkeepers offer the same specializations or levels of service. If you’re vetting bookkeepers at the moment, be sure your selection rises to these three standards:
A Spotless Track Record
As with any product or service, you’ll want to ensure that your bookkeeper of choice has a record of success. Credibility is king, after all, which is why testimonials and reviews tend to drive purchases.
Throughout your search for a bookkeeping service, be sure to browse your prospects’ online reviews for an idea of their client experience. You can also directly ask potential providers how long they’ve been in business, what their client retention rate is, and for client referrals.
Keep in mind that if a bookkeeping service is evasive about their track record, or doesn’t have any long-term clients, it’s likely a red flag. An accurate history of satisfied clients is the number one indicator of future success – along with how your bookkeeper’s specializations align with your business’s niche and size.
Specializations That Align With Your Business
While some bookkeeping basics remain the same across most industries, it helps to find a service that’s well-versed in your niche. A bookkeeper who specializes in e-commerce merchants may understand sales tax nuances better than a generalist would, for example. They may have years of experience working with restaurants and are more in tune with tracking tips and menu profitability.
Most importantly, your bookkeeping service should fit your business’s size and unique needs. For small businesses, an outsourced bookkeeping service is likely more attractive than an in-house option, as it nixes high salary expenses and other employment benefits.
It’s a great middle ground for companies that are fearful of DIY bookkeeping errors but don’t have the budget for an in-house employee. Larger operations typically have an in-house bookkeeper or team of accountants since there are far more daily transactions to process.
Types of Services Offered
At a minimum, your bookkeeping service should handle accounts payable and receivable, monthly reconciliations, payroll, and financial statements. But rather than opting for the minimum, it’s important to choose a bookkeeper with a more robust range of services.
Sales tax filings, invoice generation, and bank reconciliations are a few additional services to look for. Most importantly, ensure that your bookkeeping service offers financial reporting, analysis, and advisory support. With this A-Z service, your bookkeeper can both maintain accurate financial records and advise future business decisions based on that clean data.
Ideally, your bookkeeping service will act as an extension of your business. The broader their capabilities, the more value they can provide.
Opt for an Outsourced Bookkeeping Service
Are you a small business owner who doesn’t have the time, or the expertise to handle your books? A remote bookkeeping service with in-house results may be what you need to nix errors, inform smarter decision-making, and ultimately escape the chaos of DIY bookkeeping.
If you’re wasting a substantial amount of time and mental energy on back-office activities but don’t have the budget for an in-house bookkeeper, NorthStar is the solution you’re searching for.
Submit a form on our Contact page to partner with NorthStar Bookkeeping and take accounting duties off of your plate.