Services
BOOK KEEPING
General Ledger Management
This is one of the most fundamental yet important parts of online bookkeeping services and can include several different tasks.
- Recording and organizing financial transactions, such as payroll processing, business purchases, and sales into a general ledger
- Recording debits and credits a business owner makes to maintain an accurate balance of the ledger
- Preparing the books for the month-end close to ensure client information is accurate
- Preparing financial statements
- Performing financial reporting to generate graphs that provide a detailed overview of things like income statements and balance sheets.
- Ensuring that client financial records comply with relevant federal, state, and local regulations
- And if business owners are ever audited, a virtual bookkeeper will use their accounting software to help with both internal and external audits to streamline the process and get the situation under control. Outsourced bookkeeping services can go beyond these bookkeeping tasks and are tailored to the specific needs of each client, but these are the fundamentals that are critical for core business operations.
Expense Tracking
- Keeps track of all the business expenses and at the same time improves budget management and financial planning.
Invoice Processing
- There are three main components involved with sending invoices and managing accounts receivable with an online bookkeeping service.
- The first is creating customer invoices, which can include the products or services sold, the total amount, when payment is due, and any specific payment terms.
- Second is tracking payments, which is typically done through an accounting system. Here, bookkeeping services monitor when an invoice is sent out, whether it’s been paid or not, and how much longer a customer has to pay if it hasn’t been paid.
- Third is identifying overdue invoices so reminders can be sent. Besides getting invoices to customers, many accounting services will assume responsibility for hunting down late payments. With sending invoices and managing accounts receivable being so critical to cash flow management and building strong customer relationships, it’s an area of accounting that many businesses only entrust to a professional tax services provider. Whether it’s someone with a physical office that a client interacts with directly or a virtual bookkeeping service, this is critical to keeping the cash flowing so a business can grow and expand. Doing it efficiently requires using the right accounting software, automating tasks like identifying overdue invoices, and having an effective collections strategy in place to get business owners paid as quickly as possible.
Bank Reconciliation
- This is the part of bookkeeping where a professional looks at a business’s financial records to compare bank and credit card statements with internal records to see if they match.
- If there are any discrepancies, a bookkeeper accounting service will pinpoint exactly what the differences are, how much, and the dates on which they occurred. From there, a bookkeeping service will investigate further to see what caused the discrepancies and figure out what needs to be done to resolve them.
- Besides that, these business services document the bank and credit card reconciliation process from start to finish to make sure the information is properly documented. This is necessary in the event of an audit or if a financial institution like a lender wants to see the details.
- It’s also important to identify fraudulent activity because the quicker discrepancies are caught, the quicker action can be taken by an accounting firm to figure out what was the cause and how to prevent it from happening again. Because many businesses are continually making credit card transactions, it’s usually best for this to be a monthly bookkeeping service. Otherwise, if there’s a lengthy gap with statement comparison, they may not catch it in time.
Accounts Payable Management
Accounts payable (AP) management refers to the processes and strategies a company uses to manage its financial obligations to vendors and suppliers for goods and services purchased on credit, ensuring timely payments, accurate documentation, and optimized cash flow.
Here’s a more detailed breakdown:
- AP management involves handling a company’s unpaid debts to third-party vendors for purchases made on credit.
- Key Responsibilities:
- Invoice Processing: Verifying, approving, and processing vendor invoices.
- Payment Processing: Ensuring timely and accurate payments to vendors.
- Record Keeping: Maintaining accurate financial records of all invoices and payments.
- Cash Flow Optimization: Implementing strategies to optimize cash flow and avoid late fees.
- Supplier Relationship Management: Maintaining strong relationships with suppliers through timely payments and effective communication.
- Why it’s important:
- Financial Stability: Ensuring the organization’s financial stability by managing its debts effectively.
- Cost Savings: Avoiding late payment fees and potentially securing better payment terms with suppliers.
- Improved Cash Flow: Optimizing cash flow by managing payments and ensuring timely disbursements
- Stronger Supplier Relationships: Building and maintaining positive relationships with suppliers through timely payments.
- Examples of AP Management Tasks:
- Seeking trade credit lines.
- Acquiring favorable terms of purchase.
- Managing the timing and flow of purchases.
- Centralizing accounts payable processes.
- Using shared service environments for processing and reporting.
Accounts Receivable Management
AR management encompasses all activities related to invoicing, collecting payments, managing credit, and addressing potential issues with outstanding debts.
Key Activities:
- Credit Management: Assessing the creditworthiness of potential clients and setting appropriate credit limits.
- Invoicing: Ensuring timely and accurate invoicing to customers.
- Collections: Implementing effective strategies to collect outstanding payments, including follow-up procedures and dispute resolution.
- Monitoring and Reporting: Regularly tracking outstanding invoices, analyzing payment trends, and generating reports to identify potential problems.
- Cash Flow Management: Optimizing cash flow by minimizing the time it takes to receive payments and reducing the risk of bad debts.
- Technology: Utilizing technology to automate and streamline the AR process, such as using accounting software or online payment platforms.
- Why it’s important:
- Effective AR management is crucial for:
- Improving cash flow: By ensuring timely payments, businesses can better manage their finances and make informed decisions.
- Minimizing bad debt: By carefully managing credit and implementing effective collection strategies, businesses can reduce the risk of losing money to uncollectible debts. Optimizing efficiency: Streamlining the AR process can save time and resources, allowing businesses to focus on other important task.
7. Payroll Processing
Process payroll handles all aspects of payroll, which can include:
- Calculating employee wages
- Deducting taxes
- Reporting taxes
- Setting up employee payment methods like physical checks or direct deposit
- Issuing payments
- Keeping track of paid time off and benefits
- Preparing W-2 forms
- Creating payroll reports
