September 14, 2022
The growth and expansion of your accounting or CPA firm depend on several factors. Keeping strict watch on the business finances of your clientage is one of them. You require accurate and up-to-date financial data to help your clients make well-informed decisions. When you expand your clientele, you get a guarantee of two things: earn more money and greater responsibility.
Amongst the vast range of services an accounting or CPA firm offers, bookkeeping might be the most uncomplicated one. However, it is also the one that takes the most time and concentration. While taking care of various accounting aspects, bookkeeping might take a backseat. Any miss in recording daily transactions will impact numerous aspects of your high-end clientage, accounting being one of them. Bookkeeping helps in CRA compliance, internal control, and audit; it can also be a great aid for getting tax benefits. You will know how but before that, it’s important to know what all efficient bookkeepers do –
How Efficient Bookkeeping helps?
From recording financial transactions to developing systems to organize sales, purchases, payments, and receipts, a bookkeeper keeps a tab on everything that can dictate the health of an accounting system.
Bookkeepers have the skill of making tax season easier for the clients by following some simple practices –
Keeping Track of Form 1099
Though bookkeepers handle day-to-day financial responsibilities such as recording transactions, managing inventory, invoices, bills, reconciling accounts, and managing payroll, they can prove beneficial in collecting form 1099 from people with whom the business has been done in the past year.
Adding all 1099-Misc at year-end can prove a huge mistake. You could miss the payments, and no matter how small the amount was, it still can hamper your tax planning. A bookkeeper can cover this aspect and ensure that all form-1099 are completed and well covered.
Managing reconciliations, payables, and receivables
An efficient bookkeeper ties up loose ends by reconciling the accounts. If your internal records don’t match bank transactions, it can pose serious trouble during tax preparation.
You might struggle if account receivables are not written off timely and the list of open receivables keeps getting longer. As AR directly contributes to the profit of a business, it will affect the tax preparation process directly or indirectly.
Efficient bookkeeping services can solve this problem timely by writing off such receivables and presenting a true picture of the business’s profits.
The common setback you can face during tax season must be foreseen beforehand and tackled accordingly.
An efficient bookkeeper does that by –
Looking out for Commonly Missed Deductions.
A bookkeeper who doesn’t wait till the last minute to sort out the itemized tax deduction can help a business reduce the tax bill. Tracking expenses and saving receipts might sound like mundane tasks, but these small practices can prove bliss at year-end.
Get Bookkeeping Efficiency via Outsourcing Bookkeeping Services
By outsourcing bookkeeping services, CPAs and accounting firms can improve their client’s accounting and fund flow management. Effective bookkeeping can assist CPA and accounting firms in their strategic planning and progressive plans related to taxation. Tax preparation depends on an accurate picture of the financial information of a business. Outsourced bookkeeping services can prove pivotal in that by –
Any discrepancy in bookkeeping can lead to reduced credibility for a CPA or accounting firm. You cannot jeopardize your clients’ tax preparation because the bookkeeping was faulty and inaccurate. Outsourcing accounting and bookkeeping companies such as Greenbuck Accounting are domain experts who hold excelling means to guarantee transparency in all bookkeeping pursuits, thus bringing unlimited tax return benefits for the clients.
Greenbuck Accounting is a trusted name in the outsourcing accounting and bookkeeping domain. We handle your back-office bookkeeping efficiently so that you can make informed decisions during the tax season and avail deductions and benefits to the maximum extent. To know more about bookkeeping and tax planning, call us at +1 (214) 429-4141 or book a free consultation.