At TenKey LLC we understand that getting a small business up and running can be a stressful and challenging task. Every element of your business needs to work together seamlessly, and you may find yourself having to wear one too many hats.
Is a Lack of Time or Money Holding Your Business Back?
12 Bookkeeping Tips for Businesses in Portland, OR
Here at TenKey, we understand first-hand how hard it can be to keep your small business running. It’s hard enough to stay current on all the responsibilities that you fully understand, let alone the ones that you might not enjoy so much. Bookkeeping is our specialty, so let us help you understand what you need to do to keep your books in proper order!
We serve small businesses in the Portland, OR, area and are happy to help you with your accounting and bookkeeping needs!
1. Automate everything you can
You probably already know that more automation means less that you have to handle manually. This is a big deal! Luckily, there are a ton of accounting software applications that can help you to simplify the process of bookkeeping.
Software suites help to track daily, weekly, and monthly transactions and financial decisions. We encourage our clients to use certain software suites so that they are able to be as thorough as possible when tracking their finances, which enables us to save them time and money when it comes to compiling and digging into their books
Make sure to do your homework before purchasing your accounting software to make sure it can solve all of your needs. If you need help picking a bookkeeping software suite, just call us at 971-220-6416.
2. Keep detailed records
Keeping copies of receipts, invoices, expenses, and debt either physically or digitally is crucial to the success of your business. The financial condition of your business relies on you being able to quickly and easily sort and recall financial records.
Having a way to sort and organize these records is essential. While many choose to keep these records digitally, there are still plenty of businesses that store physical copies of financial records.
3. Keep business finances separate from personal finances
Setting up a business bank account is often one of the first steps in getting your business finances together. This protects your finances and prevents things from getting mixed up or forgotten.
Please don’t forget this step!
4. Perform regular audits
Regularly performing audits on things like purchase orders, estimates, and invoices can help you to stay organized month-to-month. It will help you in the short term, but the evidence of these audits will also help you tremendously in the long term when it comes time to do taxes.
5. Set reminders for deadlines
This is good general advice, but especially for small business owners, setting reminders for deadlines like tax season, end-of-the-month billing cycles, and invoice collection is crucial.
Remember the last time you forgot to charge a client or group of clients? Hopefully not! Setting reminders and partying attention to them is easy with personal, digital calendar systems, so you have no excuse!.
6. Make keeping your books your number one priority
Whether you keep the books yourself or pay a contractor like us to do it, bookkeeping should be at the top of your list. It’s really easy to put off doing your books because of how tedious and frustrating it can be, but that annoyance will decrease over time as it becomes second nature.
Really, it’s so important to keep your books in good order that you can’t afford to let them slip, so making them a priority should be at the top of your goals list.
7. Track business expenses
Keeping track of your expenses can help you understand and anticipate your business needs in the future. Being able to see what you spend and when can open a window into your habits and business needs.
This might look like keeping a record of supplies, insurance, utilities, and inventory.
8. Prepare for unforeseen expenses
By tracking your expenses, you have half the battle won, but the other half is the unknown. It can sound scary to consider the unknown expenses you might incur, but if you prep for it, it might not end up being nearly so painful.
Set aside some liquid assets in a business savings account titled “Emergency”. When something unforeseen occurs, and you have no idea how to pay for it, you have the emergency savings account to cover that expense. Anytime you have to dip into the emergency account, prepare to refill the account to a level that makes you comfortable for the next time you need something unforeseen.
9. Pay yourself a salary
Depending on the type of small business you have set up, you will want to pay yourself a reasonable salary. Taking a monthly salary can mean the difference between your business succeeding and you burning out.
If your business is scraping by, but you are personally barely solvent, how much of a chance does your business have? It’s better for you to find a decent balance between work and personal life than to have your business dip into the red during a downturn.
10. Track and reimburse business mileage
Any mileage incurred for business means in your personal vehicle can be claimed as a write-off. It’s important to track the date, miles, and purpose of each trip and use that info to submit for reimbursement.
Most bookkeeping software has mileage tracking functionalities that you can take advantage of.
11. Consider outsourcing payroll
If you have employees, you know how much work can be to track hours, withhold taxes, and file payroll tax returns. It’s important to get this aspect of your business precisely correct so that your employees feel taken care of, which is why it’s a good idea to outsource your payroll.
There are some things you should trust professionals to do because they can do it faster and more efficiently than you - payroll is one of those things!
12. Consider outsourcing your bookkeeping
For the same reason that you should consider hiring a pro to do your payroll, you should consider a pro to keep your books. Here at TenKey, we can keep track of your books at a lower cost to you than you can because it’s our business!
We are trusted by businesses around the Portland metro area and beyond to keep their books in tip-top shape. Consider giving us a call at 971-220-6416, and we will do our best to simplify one of the most painful aspects of keeping your business running!
How to Raise Prices Due to Inflation
Inflation is soaring, which means that all companies are scrambling to avoid losses in both their supply chain and the pricing of their products. Everything from labor and logistics costs to gas prices is soaring to an epic 40 year high. Inflation sits at 7.9% at the time of this writing, and with the invasion of Ukraine by Russia, it’s looking like things are going to get worse before they get better.
So what is the proper response to this to avoid dipping even further into the red? As a small business owner, it’s essential to know what blunders not to make.
Spreading the Cost Evenly Among Products
It’s tempting to respond in kind when facing price increases across the board, but it may not be the best approach for your customers or your business. Spreading the cost of inflation evenly across all your products or services may hurt you by discouraging customers from purchasing from you.
While it requires more work, it may be better to analyze your costs and see where inflation is exerting the heaviest pressure on you. Once you have an idea of your pain points, you can adjust pricing on specific products and services according to what makes sense, given your costs.
If a client sees that your prices are up across the board, they may be deterred from your services. If the cost of your services remains the same, but you charge more for travel time because gas prices have increased, that same client would likely concede that such an increased cost to them makes sense.
Asking for Big Price Increases and Accepting Small Ones
You know how little white lies work, right? This method of asking for an 11% price increase to cover inflation and then walking that back to 5% breeds mistrust. First of all, it opens up the client’s mind to the idea that price increases are negotiable, which will teach clients to barter with you in the future. But it also opens their mind to the idea that if you will walk the price back 6%, why should they accept any increase at all?
It’s always best to be straight with clients on your needs; that way, they aren’t tempted to doubt you. If your clients doubt you, you’ve already failed them.
Not Trusting the Sales Effort
If you have employees in sales, or if you are in charge of your sales efforts, you know about the give and take involved in negotiations for things like price increases. It’s pretty essential with definite cost increases for your company that your increases are not negotiable for your client.
Your sales team needs to feel confident that they are providing accurate and saleable numbers to your clients, and that’s hard to do if terms are flexible. Further, if you need to increase prices due to inflation, that’s not something that can be mitigated with longer deals or sales tactics. You need to increase costs to keep doing business sustainably.
Staying solvent and profitable is the most important thing for you and your clients. You won’t be doing any favors if you allow yourself to fall into debt and your business fails because of it. It would help to build long-term relationships on trust with your clients, which always means being upfront and honest about price increases and why they happen.
4 Quick Accounting Tips for Small Business Owners
Every time you have to sit down and look at your books, it's a little stressful; luckily, we have some tips for you to make it easier on your mind and your business.
Having a good grasp on your accounting and bookkeeping gives you a better chance at success and increased revenue over the years. So, we are here to help you build some great habits that will keep you on the straight and narrow to success for years to come!
Hire an Accountant and Bookkeeper
There are no two ways about this, and it's so much cheaper for you to have a professional keep your books than for you to try to keep them. Even if you have a friend or family member in charge of your books, if they aren't intimately familiar with the ins and outs of accounting, you are probably losing money through errors, time spent, or mishandled books.
By hiring a professional accountant and bookkeeper, you get the expertise of a professional who won't waste your time or money and will keep your books squared away for years. This will free you up to run your business, and that peace of mind is immense!
Decide How to Report Income and Expenses
Do you want to use accrual accounting or cash-based accounting?
Obviously, talk to your accountant about this one, but here's something for your mind to work on before you do.
What is Accrual Accounting?
Accrual accounting requires businesses to report income when revenue is earned, not when cash is received. Also, expenses are recorded when they are incurred, not when they are paid.
This limits business owners' flexibility to the period where income and expenses are reported.
When to Use Accrual Accounting
When your business:
One that carries inventory
Is larger
Has complex structures
Has shareholders or investors
What is Cash Accounting?
Cash accounting is when businesses report revenue when cash is received and reports expenses when they are actually paid. This allows for more flexible planning and reporting practices.
When to Use Cash Accounting
When your business:
It doesn't carry inventory
Is smaller
Sells services, not products
Pay Yourself a Salary
Many small business owners avoid taking a salary because they believe it will help their business to succeed, but you should be adequately paid. If you own a small business and never take a salary, how sustainable is the business?
Paying yourself a regular and repeatable salary allows you to keep the business and home life balance. Isn't that why you started your business to begin with?
Even if the salary isn't enough to sustain you fully, make it regular and somewhat sustainable.
It’s important to note that how you pay yourself depends on how your business is setup.
If your business is an S Corp or C Corp, a salary is an acceptable form of self-payment as long as it’s made through payroll.
If your business is an LLC then draws are the way to go.
Get Bookkeeping Software
No matter if you are keeping your own books or paying someone else to do it, invest in good bookkeeping software! This can simplify things tremendously by not requiring you to do a bunch of work that's already been done. Bookkeeping software today is so much more impressive than it was even ten years ago; you won't regret this investment.
10 Bookkeeping Tips You Can Use Anytime
Bookkeeping Tips Anyone can Use
Take these ten bookkeeping tips and turn them into peace of mind.
Do you want tax time to be a total nightmare? No! Of course, you don’t. But I bet you’ve had a few tax time nightmares in your life. Well, no more!
How will we help you defeat the monster that is small business bookkeeping to ensure a smooth and easy tax season? We will give you a list of tips that you can turn into a system for keeping things neat and organized. When tax time comes, all you will have to do is collect all the work you’ve been doing in small chunks throughout the year and compile it. Easy!
Bookkeeping for a small business is about building routines that help you to prevent things from falling through the cracks. That way, your earnings stay earnings and don’t fly out the window every tax season.
So, we have to create a process that details your business finances, a method that will combine your invoices, deposits, expenses, and tax information to make your life much easier.
Before You Get Started, Get Organized
Bookkeeping is one of the most essential parts of any small business venture. The more we can simplify and organize the process, the easier it will be. You can take some time to accomplish these basic steps, which will make it much easier to achieve the ten tips that we list below.
Save all your receipts, which is especially important for all transactions that are over $75. Having clear documentation of all purchases will help a lot when claiming deductions on tax returns. You can also keep track of your reimbursable expenses so that you don’t pay for those things out of your personal bank account.
Make sure to identify and classify your employees for tax purposes correctly. It’s also essential to reconcile your bank statements with your books to ensure that the numbers add up every month. It’s essential to keep all records and documents backed up both physically and digitally in an offsite location, either weekly or monthly.
It’s also important to keep all your bills paid on time to avoid late fees and hits to your credit.
These are just the basics that everyone should adhere to whether you are a brick-and-mortar store or an online eCommerce site.
Now, let’s get on to the tips!
10 Bookkeeping Tips You Can Use Anytime
Find a Trustworthy Advisor
Having a good advisor who is familiar with your books to help you out at least once a month is a critical and invaluable part of keeping your books in tip-top shape. They can straighten you out when you aren’t sure what to do, answer any questions that arise, and take some of the heavy lifting off your plate to free up your time. Here at TenKey, we are excellent at accounting review for small businesses and can help you anytime if you give us a call at 971-220-6416.
Go Paperless and Use Cloud Accounting Software
Most accounting software out there right now has all the basic functionality and features that you might need at a reasonable price. The most popular option right now is Intuit’s Quickbooks Online. You will want to look for a package that is fit for a small business. Not only are your books available anywhere (on your phone or your laptop), it’s also backed up to the cloud. We have some opinions on what suites fit specific business models best, and you can call us for our views on those.
Plan for Big Expenses
Nothing can wipe out your month’s spending power like an unforeseen big expense, which is why it’s critical to plan ahead on things like inventory. Budgeting for big-ticket items regularly can help you avoid moments of scarcity when you need the money the most.
Keep Business and Personal Finances Separate
As soon as you open your business, apply for a business savings and checking account at your local bank or credit union. This will avoid big mix-ups in the future and keep your personal finances safe and secure from your business finances. This is also a good idea because it allows you a chance to forge a meaningful relationship with a local bank or credit union, which can be invaluable over time.
Watch Your Invoices Closely
Late and unpaid bills can hurt your business credit and hurt your tax payments as well. Keep all bills neat and organized, but most importantly – keep them paid. If you can keep track of your payment receipts, too, that’s great.
Set Aside Money for Taxes
If you are diligent in keeping track of your financial records, you will probably have a good idea of what you should owe when tax season comes. If you put aside a little bit of money each month to taxes, it won’t hurt nearly so bad when taxes come due. Nothing can hurt like having to take out a loan just to pay your taxes, so stay on top of things to avoid that at all costs.
Avoid Cash
Cash is hard to track, which makes it easy to lose track of when spending it. This can make it hard to know if you bought something that can be written off.
Keep Daily Records & Reconcile Bank Accounts Regularly
Double check your bank accounts and daily records once a month. This is just doing your due diligence to reconcile your withdrawals and deposits in your account.
Double Check Your Accounts Receivable
Making sure that you collect what you are owed is basic business good sense. If you miss what you are owed one month, there is a chance you miss it the next month, and before you know it, you have done a ton of free work and have nothing to show for it. Running a regular accounts receivable report will give you a good idea of what you are owed and what you need to collect.
Go Over Your Books Once a Week Like Clockwork
Set aside a specific day of the week where you always do your bookkeeping chores. Making this a habit will result in your books looking organized when tax time comes and will save you a massive headache more often than not.
If you are ever in need of bookkeeping assistance, please give us a call at 971-220-6416!
How Small-Business Owners Delegate HR Well
Human Resources is tricky for small businesses because, like so many different aspects of owning a small business, it probably isn’t the owner’s forte. So many small business owners neglect HR until an HR problem arises, then they are forced to scramble to cover the problem and become compliant, which is not fun.
The statistics on small business HR woes are not great. Most small businesses have an ad hoc employee who has the tag “HR manager” slapped on top of the rest of their workload. Needless to say, this isn’t an ideal situation when a real HR problem arises. So what can you do to protect your company when HR issues aren’t your forte? Give us a call at 971-220-6416!
Here at TenKey, we specialize in HR as a contracted resource for small businesses and belong to SHRM -did we mention we have over 25 years or HR experience? Whether you choose to hire us or delegate the duties to an employee, here are some tips for delegating HR in your small business.
Choose the Right Person for the Job
Business owners often choose an internal candidate to fill the HR role based on their current role, not their ability sets.
The real goal should be to find someone who can:
Keep things confidential and professional
Keep things organized
Someone who has good listening skills
Someone who is naturally empathetic
This person can deal with being the bearer of bad news and someone who is generally good with people.
Delegating HR Means Providing Training
Picking the right person is where to start, and getting them the training they need to perform the role is the next step. Training doesn’t mean dropping a few “HR For Dummies” books on their desk and walking away.
Ideally, the person you delegate HR responsibilities to will have some previous experience or training in the field. If they don’t, it would be a good idea to pay for some classes for them to attend. Some states offer courses and technical assistance in this realm, and most of these programs are pretty helpful.
Being patient with this process is crucial; you are asking a lot of these employees, and they will likely need some time to get used to the new responsibilities and everything that comes with it.
Prepare for Growth
You aren’t finished once you’ve delegated a person to HR duties. As your organization grows, prepare for HR to grow with it. If you add new locations, have a plan in place for how HR will grow to accommodate the needs of those who may be physically remote from your original location.
Support HR
Probably the most crucial role that you can play once you’ve delegated HR responsibilities to an employee is that of an understanding supporter. Just like with any employee, HR will need to feel supported and empowered by you in order to reach their potential.
If you need help with HR issues and are not ready to delegate the responsibilities to an employee, just give us a call at 971-220-6416. We have been doing this a long time and can help you either remotely or in person.
Big Accounting Tips for Small Businesses
How a Bookkeeper Reduces Your Stress While Increasing Overall Productivity
If you are a business owner, you are constantly looking for ways to decrease your stress. Simultaneously, you always have to make sure that the services you spend your money on are actually paying off for you, which ironically adds to your stress levels!
Fortunately, one surefire way to save money and decrease your stress level is to hire a bookkeeper. Don’t believe us? Take a look at this list of five of the most undeniable benefits of hiring a bookkeeper!
Five Bookkeeper Benefits
Your time and your mind are freed up, allowing you to focus on your expertise.
You trust an expert to handle your finances leading to fewer costly financial mistakes.
You receive critical financial information on time, allowing you to make timely decisions.
Your business has proper systems and processes in place which prevents cash “shrinkage.”
Your business is prepared for growth.
But the list of benefits of hiring a bookkeeper pales in comparison to the list of drawbacks
What You Risk by Not Hiring a Bookkeeper
Invoicing doesn’t happen on time.
Outstanding invoices aren’t tracked or collected.
Cash or inventory goes missing.
Lack of current financial information makes it impossible to make good financial decisions.
Payroll or government filings are done late, incorrectly, or not at all.
Bills are paid late or not at all, incurring late fees or credit hits.
No awareness of cash availability.
Growth is cut short by messy internal strife.
Doing your own books eats into your personal time.
If cash is tight, things are stressful.
All of this leads to a less happy, less productive, more stressed you! Not only that, you aren’t a bookkeeper! You know better than anyone that a professional can do their job faster, more efficiently, and for less money than someone who does the same work on an amateur level. It’s not rocket science; it’s common sense – so why take chances with one of your most valuable assets?
Five Reasons Why You Don’t Have a Bookkeeper
If you don’t have a bookkeeper, it’s probably because of of of the following reasons.
You don’t like the feeling of sharing your financial information with others. This is a big one, which is why it’s at the top of this list. You have to have someone you can trust with something as important as your financial information. You should have a good bookkeeper or accountant just like you should have a good lawyer; it’s just common sense. We are professionals who make your success our business!
You want to be intimately familiar with your cash flow. This is excellent motivation but the wrong way to look at it. By doing the books yourself, the chances for error are compounded tremendously. You ought to be reading financial statements and accounts receivable reports, not producing them.
You think a bookkeeper is expensive. We do this every day, and as such, we are quite fast, which saves your money. But the cost of not hiring us should be the thing that scares you here! We save you money by keeping your books in prime shape and doing our job well.
The state of your accounts is out of control and embarrassing. Let me assure you; we have seen it all. We walk into messes with every new account; your’s isn’t any different.
You don’t know how to find a good bookkeeper. This is the one that makes sense. It can be hard to find a good bookkeeper, so start by going to the website of a national bookkeeping association. Bookkeeping associations make sure that their members are properly trained and accredited. From there, it boils down to who you gel with!
Give us a call at 971-220-6416, or contact us at HELLO@TENKEYLLC.COM to learn more. It’s time to take your business to even greater heights!
How to Find The Best Outsourced Accounting and Bookkeeping Service
What’s the difference between your business now and your business when you decide the outsource your accounting and bookkeeping? Well, you have a lot more time when you find an excellent accounting and bookkeeping service! We know it’s super overwhelming to find the right service to outsource your books to, which is why we put together this blog.
The information we’ve put together below will help you understand what a professional outsourced bookkeeper and accounting service should offer. It will also show you how to compare these providers to achieve the best fit for your business. We will go over questions that you should ask and measure the value of these outsourced services. We will even go over some of the things to steer clear of.
Here at TenKey, our business is helping our clients succeed by taking on the burden of their books and accounting duties. Give us a call today at 971-220-6416.
The Guide to Finding the Best Outsourced Accounting and Bookkeeping Service
Create a list of your needs in bookkeeping and accounting. Figuring out what you need can help you dial in the conversation you will have with the services when you find them and will give them a more accurate way to provide you with a price and let you know if they are a good fit for you. Do you need someone to do your payroll? Maybe you want your bank and credit card accounts balanced and nothing more? What if you only want quarterly reports done by an outside entity? Figure out your needs first.
Make a list of the questions that you will ask your prospective partners. If you need help figuring out what kind of questions will work – this will depend on your needs, but here are some examples:
How quickly can you adjust the scale if our transaction volume increases or decreases significantly and without warning? If your business has heavy seasonality, this is a must-ask question.
How does partnering with you to handle my accounting and bookkeeping needs help to save me money – or what is my Return on Investment (ROI). Price plays a huge role in the equation, but it’s certainly not the end of the line. If the cost of an accounting and bookkeeping service seems high, but they can save you tremendous amounts of time and money, they net you a great ROI. This plays to the old adage, “You get what you pay for.” Yes, the price of the lowest contractor may seem the best, but the things they miss, their lack of respect for the job, or their lack of knowledge in how to make themselves helpful to you can end up costing you a lot.
How do you ensure privacy for our clients and us? Discretion is critical to your business and the clients that you serve, and you will want to make sure that your bookkeeper is up to the job of protecting your privacy.
Measuring True Cost vs Value
Once you’ve sat down and talked with a few accounting providers, it’s time to re-examine whether this is a move that will provide good value to your business over time. If it just ends up looking like an added expense, then consider keeping the accounting and bookkeeping in-house. Depending on the size and scope of your business, a high-quality in-house bookkeeper can set you back roughly $50,000 per year. That figure doesn’t include the cost of training, hiring, benefits, or a long-term track for that employee.
Compare that to the cost of a high-quality outsourced bookkeeper, which can run between $500 and $6000(is this the correct range you were intending? Just making sure) per month, and well, you see how this pans out.
It can be difficult to accurately understand the amount of value that an outsourced bookkeeper can add to your business. Start asking yourself the following questions to understand how we can provide value to you:
What’s it worth to you not to have to go over dozens of resumes?
What’s it worth not having to check references for new employees?
What‘s it worth not to have to train a new employee?
What’s it worth to have a professional team hit the ground running who never has to take a vacation or take sick days?
How quickly can you replace a new employee if it doesn’t work out?
How much will it cost to pay for office space to house this new employee?
Final Steps of Choosing
The actual value that we here at TenKey provide to our clients depends on their current situation and the job market in their area. We are able to take on clients anywhere in the US and are ready for whatever challenges you can throw at us!
The final step to finding the perfect outsourced accounting and bookkeeping professional is to compare the price, services, value, and fit. Create a chart that compares contractors in a side-by-side fashion and highlights all the benefits of each. Also, highlight each contractor's costs, and you will have a much easier time breaking down who you should go with if it isn’t already apparent.
Sometimes you just click with someone, and that’s often more powerful than any of the other factors. Never underestimate how well you like or get along with someone because you will want to build a long-term relationship with them that will last in the long run.
If you are looking for the right service to help your business with its bookkeeping and accounting needs, consider giving TenKey a call at 971-220-6416 or email us at HELLO@TENKEYLLC.COM. We have been in the business for decades and know exactly what it takes to help you succeed!
Bookkeeping Basics: 6 Concepts to Help You Start Out
Is bookkeeping a headache? Yes, it can be. But it’s made much more difficult if you don’t have a basic understanding of what to do and why. With this guide, you can keep your own records and avoid the hassle of incorrectly kept books.
Of course, we here at TenKey are always happy to help with all of your bookkeeping needs, so should you ever need help with your books or perhaps CFO Services, we have you covered! Just give us a call at 971-220-6416, and we will have you sorted out in no time.
Where to Start
Record keeping is the best place to begin when trying to get an idea of where you stand with your books. Here are the three most popular options:
Accounting Book: Manually keeping track of your books in a physical accounting records book is a tried and true method for bookkeeping. This can be very cumbersome, especially when / if you are audited or need to recall something quickly.
Spreadsheets: This method gets you into a digital format that can be a little easier to search quickly. Human error can easily creep into your spreadsheets and wreak havoc down the road.
Bookkeeping Software: While the most expensive option, bookkeeping software can offer a lot of features that make aspects of keeping records clean and easy for you to understand. This is the best option for proper record keeping. Look for a software suite that makes sense for your needs and the size of your business.
Accountant vs. Bookkeeper vs. DIY
You don’t need a degree to do your own books, but it can help! Here are the differences between your bookkeeping options.
DIY: If you have the time and a bookkeeping app, you can keep your own records pretty easily. Making mistakes can cost you big down the road, but the more you do it yourself, the easier it will become. This is also advantageous because you will always have a good idea of how things are going, and you won’t be paying someone else to keep your books.
Accountant: Accountants are usually responsible for general oversight of accounts and producing tax documents and financial statements that comply with local and federal laws.
Bookkeeper: A bookkeeper will dig into the nitty-gritty of everyday financials for your company to keep a lasting and accurate record of all your finances. They do this monthly, quarterly, or yearly, based on your needs.
Basic Bookkeeping Types You Should Know
You are going to need to understand some basics about bookkeeping to make things much easier in the long run for you. Here is a list of bookkeeping types you should understand:
Sales: The account where all your incoming revenue from sales transactions. This is one of the most important accounts you have and should be kept up to date.
Cash: The account where all business transactions pass. Another very important account, bookkeepers usually will use two journals, cash disbursements and cash receipts, to track activity.
Accounts Receivable: If you sell services that are billed for over time, you need accounts receivable account that tracks the money due from customers.
Loans Payable: This account tracks what you owe, to whom, and from when.
Inventory: This is the account where you keep track of the type and quantity of products you keep in stock. Physical counts should be done regularly to ensure the books track with reality.
Purchases: This is the account where you track what you’ve bought for your business.
Payroll Expenses: The account where you track the wages and salaries paid to your employees. This is usually the highest cost for any company with employees.
Important Bookkeeping Practices You Should Probably Do
Yes, it seems overwhelming at first, but keeping the books for your own company is doable if you break it down into steps and habits that you follow religiously.
Avoid Procrastination: If you are pressured into doing things at the last minute, something will slip by. If everything is always up to date, you won’t ever be left in the lurch looking for crucial info.
Keep Your Books Tidy: Yes, your books can easily fall into a clustered mess, and yes, that makes things harder on you in the long run. Keep it clean, and you won’t regret it.
Store Your Receipts: If you store your receipts digitally and keep them on a routine backup schedule, you never have to worry about whether you are compliant or not.
Keep Business and Personal Books Separate: This is easier said than done, and what a hassle it will save you!
Basic Bookkeeping Terms You Should Know
If you don’t know the difference between a balance sheet and an income statement, you will have a hard time keeping your books well. Here is a shortlist of the top bookkeeping terms that you should understand.
Trial Balance: A business document where all ledgers are compiled into debit and credit columns. This is a check sheet that ensures the books are mathmathically correct.
Profit and Loss: A report that shows the financial revenue and expenses for a specified time.
Expense: This is a fixed, Variable, day-to-day, or accrued cost that your business incurs via operations.
Balance Sheet: A report that shows your business's financial situation.
Chart of Accounts: The full list of accounts used in your business to track and categorize financial transactions.
You Don’t Have to do it Alone
Of course, if you insist on keeping your books yourself, you can! But you don’t have to go it alone, whether you need a little help with a few of your accounts, or if you want a one stop shop to keep your business squared away 24/7, TenKey can help.
Just give us a call at 971-220-6416, or shoot us an email at HELLO@TENKEYLLC.COM, and let us know what you need help with. We have over 20 years of experience in keeping books, and are proud to serve the community!
What are CFO Services in Portland, OR?
Running a successful business is tough. Running a successful business all by yourself is nearly impossible. That’s why we’re here. TenKey is Portland’s premier bookkeeping and accounting firm, and we offer a wide variety of services.
Many of our clients hire us to take over duties typically reserved for a CFO. Outsourcing CFO services have become extremely popular in recent years as an easy and cost-effective way to manage a business. Above all else, outsourcing helps you focus on what’s important—growing your business.
The CFO services we offer include:
Cash Flow and Revenue Management
As your CFO, it’s our job to suggest possible improvements that can maximize both your business’s cash flow and its revenue. We’re also here to help solve any issues you may have with cash flow by taking a deeper look into your company’s capital, debt obligation, and other pertinent financial components. One way we accomplish this goal is by utilizing cutting-edge accounting software and providing regular reports. Routine reporting can help reveal any glaring issues and potential for adjustments.
Financial Analysis and Modeling
Once onboard, we will take a look and assess your historical financial performance and compare that to any industry benchmarks and competitors. The correct financial analysis and modeling can help you make informed business decisions that accelerate growth. Ultimately, we want to maximize the bottom line..
Budgeting, Planning, and Forecasting
A good CFO should provide a realistic and practical plan for the future of your business that includes both short-term and long-term goals. You would be amazed at how few business owners keep track of their budget or projected growth, usually because they don’t have the time. Our CFO services include budgeting, planning, and forecasting to help improve your business’s financial strategy. Forecasting, in particular, can help us make minor adjustments that lead to significant gains.
Business Valuation
Generally speaking, a CFO should assess the monetary wellbeing of your business and take a deep dive into your financial records. Comparing your company’s performance with others in your industry should paint a more accurate picture of where you stand as a whole. Other reasons business valuations are important to include taxation, equity financing, and better financial reporting.
Ready to Outsource CFO Tasks?
Find out why more and more business owners are outsourcing their bookkeeping and accounting tasks! If you are interested in utilizing our CFO services, please call 971-220-6416, or contact us at HELLO@TENKEYLLC.COM to learn more. It’s time to take your business to even greater heights!
Ways Outsourcing Your Bookkeeping Can Help You
Bookkeeping is a tedious yet essential task for anyone trying to run a business. Keeping track of all your financial transactions, financial statements, and important tax information can be particularly overwhelming if you’re a small business owner with no previous accounting experience. As your business grows, you may find it impossible to do without some kind of help.
That’s where TenKey LLC comes into play. With over 20 years of experience, our accounting and bookkeeping firm offers a wide array of financial services designed to lessen the stress and burden of managing a successful business. We handle the bookkeeping while you focus on more important aspects, such as growth. Our monthly financial statements can even help illuminate potential adjustments and opportunities that take your business to the next level!
Outsourcing Your Bookkeeping Vs. Doing It Yourself
Getting a new business off the ground is a tricky endeavor. In the beginning, most small business owners find themselves stretched razor-thin, with little or no capital to hire additional employees. You may find yourself bookkeeping simply out of necessity.
Keeping track of the books may be feasible at first, but as your business (and profits) grow, doing it yourself can cause more problems than it prevents. In the past, you would typically hire a new full-time employee to take over accounting. These days, it may make more sense to outsource your bookkeeping.
There are numerous benefits to outsourcing bookkeeping when compared to taking care of it yourself. But above all else, utilizing an experienced accounting firm helps you avoid mistakes. Common mistakes that can end up costing you a lot more money than just hiring a professional.
Outsource Bookkeeping to Avoid Common Mistakes
When a business owner with no prior experience attempts to do the books themselves, the potential for error is extremely high. And when it comes to bookkeeping, one minor mistake can lead to major consequences. The IRS has a zero tolerance policy for errors and may audit your business or issue a sizable fine if they notice something amiss.
The most common bookkeeping mistakes include:
Failure to track small transactions and minor receipts
Failure to budget properly
Failure to report on any and all sales
Neglecting payroll taxes
Neglecting to back up your financial data
The larger your business, the more complicated your bookkeeping becomes, the easier it is to fall behind. One of the biggest mistakes an owner can make with their own books is failing to fully comprehend where they stand financially. This can lead to missed opportunities and poor cashflow, not to mention the stress and anxiety as a result.
When you hire a team like us, you no longer have to worry about making mistakes. Instead, we provide accurate financial reports and organized books using a fully integrated accounting system specifically designed to your needs. With decades of experience, you can rest assured knowing your finances, and your future, are in good hands.
Outsource Bookkeeping to Save Money
One of the most essential and appealing benefits of outsourcing bookkeeping is that it saves you money. Hiring a full-time bookkeeper or employee can be a costly endeavor. In addition to their hourly wage or annual salary, you also have to factor in other expenses like benefits, insurance, and the recruitment & training process.
Outsourcing your bookkeeping essentially eliminates these costs. It also largely eliminates the potential for fees and penalties that stem from payroll mistakes or misreported sales. The money you save can be reinvested back into the business, whether that be to expand your services or ensure your current employees are happy with their wages and benefits.
Happy employees tend to be more productive, which in turn, typically leads to more profits. It’s a wonderful cycle of success.
Outsource Bookkeeping to Grow Your Business
A good bookkeeper should provide you with access to relevant financial information on a routine basis. Why? Having a basic, up-to-date understanding of your finances is a key part of running a successful business. Owners who aren’t on top of their finances are running their business “blind,” which can lead to a whole host of additional problems, especially when growth is a concern.
Regular (usually monthly) financial reports provide you with the necessary information you’ll need to grow your business. Your reports, along with our guidance, will help you identify potential opportunities that optimize your profit margins.
Unfortunately, too many owners get caught up in the day-to-day operations and neglect long-term planning. When you outsource your bookkeeping, and use our state-of-the art accounting services, planning for the future becomes a lot easier. You’ll even have more free time to improve overall operations, making any day-to-day issues you encounter far less frequent.
Our Professional Bookkeeping Services
The services we recommend and provide depend on your business’s individual needs. That said, some of our most common services include:
Organizing the books – Keeping the books organized is a difficult task for most small business owners as their business grows. Tons of paper receipts and transaction notes, for example, can make it hard to produce proper reports. A professional bookkeeper will reorganize your records and provide you with the information you need to stay on top of your finances.
Charting of Accounts – A professional bookkeeper should help set up your chart your accounts in a way that organizes your financials, complies with GAAP, as well as highlight income and spending trends. This can be incredibly challenging to do yourself.
Financial reports – Regular financial reports are a necessity if you want to run your business properly and optimize your capital. Reports can also make it much easier come tax season, as all your financial information is already organized and easy to digest. Also, our financial reports are provided monthly, giving you regular and up-to-date access to your financial information.
Reconciling Accounts – Mistakes happen, even if you are diligent and conscientious when it comes to recording your transactions. That’s why it’s important to reconcile your accounts on a routine basis. A professional bookkeeping team can help identify and correct any discrepancies, giving you a chance to rectify mistakes before they end up costing you big time.
Interested in Outsourcing Your Bookkeeping?
Our team is happy to help! Call 971-220-6416 or send a message to Hello@TenKeyLLC.com to learn more about our bookkeeping services.
The 5 Biggest Issues that Outsourcing HR Can Fix
At Tenkey, we understand that running a small business can be tough, especially in the beginning. Many business owners find themselves wearing multiple hats, from CFO to CEO and everything in between, including human resources. While this may be necessary at first, it’s not sustainable.
As your business grows and you hire more employees, you may find yourself in need of a more robust HR department to avoid potential problems. Instead of staffing HR internally, many businesses have turned to a growing and effective trend: outsourcing the department. Outsourcing your HR department can help you avoid or resolve a variety of issues, including the following five.
1. Outsourcing Reduces Costs
According to some sources, outsourcing can help cut HR costs by 20% to 30%. The average HR manager earns more that $75,000 a year, and that’s not including benefits. A small or medium sized business could be spending hundreds of thousands of dollars on HR, depending on the staff size.
When you outsource the department, you spend far less on salaries, reduce the costs of employee benefits, and reduce the costs of hiring and training. Hiring an expert HR team can also help you avoid expensive penalties for non-compliance with employment laws and regulations, as well as spend less time worrying about it and more time increasing profits.
2. Outsourcing HR Can Free You Up to Focus on Core Business Processes
One of the many reasons business owners are outsourcing a number of positions these days is to maximize their time management. Besides the fact that being stretched too thin can lead to mistakes and poor physical and mental health, it also prevents you from focusing on what’s most important: your core business processes. Whether you are a doctor wanting to focus on provided top-notch medical care or a mechanic focused on fixing and maintaining vehicles, outsourcing HR allows you to do what you do best and not get bogged down by logistics.
3. Outsourcing HR Can Mitigate Legal Risks
An inexperienced HR manager or department may be more likely to make mistakes, but hiring an experienced manager may also be too costly. Outsourcing HR functions serves as a nice middle ground. You get all the experience for a fraction of the price.
This ultimately helps mitigate your legal risks as a business owner, whether it be a worker’s rights compliance issue or something even more serious. At the end of the day, putting your trust in people who are more familiar with employment law and HR practices can give you peace of mind.
4. Outsourcing HR Can Improve the Hiring Process
Our team has the skill and experience to develop an efficient hiring process for your business that attracts top talent. From the initial job description to the actual interviews, hiring outside HR professionals helps streamline the process. Once we bring an employee on board, we can also implement training procedures that allow them to assimilate quickly and hit the ground running.
The money you save by outsourcing HR can also be used to attract qualified candidates searching for a job that not only pays well but offers ample benefits too. In other words, outsourcing HR allows you to match or exceed the benefits packages of your competitors, ensuring you do not lose top talent due to such issues.
5. A Third Party Can Improve Overall Employee Happiness
Better benefits don’t just attract better employees; they keep them happier in the long-term as well. Employees that know their company cares enough about them to provide excellent wages and comprehensive benefits also tend to be more productive and loyal. They feel appreciated, and in turn, your business flourishes. It is a win-win all the way around, and it all starts with a good Human Resources department.
Call Now to Learn More About Our HR Services
Find out how our HR services can help take your business to the next level! Call 971-220-6416 or contact us at Hello@tenkeyllc.com today!
The 8 Biggest Accounting Mistakes You Can Make
If you’re a small business owner, you already know what a headache accounting can be, especially when you make a mistake. That’s why many owners hire firms like us, TenKey Management & Bookkeeping Services, to take care of their bookkeeping. Outsourcing your accounting needs allows you to focus on growing your business and helps you avoid common and costly mistakes, ultimately giving you peace of mind.
1. A Lack of Organization or Failing to Take Bookkeeping Seriously
This is one of the most significant accounting issues facing most new business owners. Effective bookkeeping requires vigilance and strong organization skills.
If you do not properly track and store information, from small transactions to large payments, it could come back to haunt you during tax season. Information should also be updated with regularity and punctuality to avoid forgetting a transaction.
2. Failing to Track Minor Receipts & Small Transactions
Minor receipts and small transactions can quickly add up. No matter how insignificant a transaction may seem, it’s still important to record it and file away a receipt.
In the case of a tax audit, you want to be able to show the IRS any and all proof of claimed expenses, etc. Receipts can also provide answers for any mistakes or gaps in your bookkeeping before the IRS gets involved.
3. Using Outdated Accounting Software or No Software at All
While you can track your finances in an excel spreadsheet or even keep a physical ledger, we don’t recommend it. These days, business owners and accountants have access to powerful software that makes it far easier to handle bookkeeping.
Most software allows for seamless integration of your bank account and your business’s financial data, like payroll and taxes. In the end, useful accounting software helps significantly reduce any chance of making mistakes.
4. Neglecting to Back Up Your Data
When you do implement accounting software, it’s also important to back up your data. Most software should automatically back up data, or at least make it easy to back up in case of an emergency.
The general rule of thumb is to keep two or more digital copies of each record and avoid relying solely on cloud-based hosting. While it is usually considered a thing of the past, some business owners even opt to keep physical paper copies.
5. Failing to Budget Projects Properly
Failing to budget a project properly can lead to a whole host of problems later down the road. Without established parameters, a project or endeavor can end up costing your business more money than it makes. Proper budgeting also allows you to plan ahead and make the necessary adjustments for growth.
6. Failing to Report on Sales & Payroll Taxes
As we’ve previously established, the IRS has a zero-tolerance policy for error. If you misrepresent your sales or the payroll taxes you owe to the government, you can expect to receive a considerable fine at a later date. As your professional accounting team, you can rest assured knowing we’ll double and triple-check your returns before sending them off.
7. Short Term Thinking
We here at TenKey Management & Bookkeeping Services not only want you to avoid mistakes, we also want to help you take your business to the next level. Many business owners that take care of their own books often get caught up in day-to-day or short-term thinking. When you outsource your finances, you free yourself up to focus on better business strategies, while we help you budget and plan for long-term goals with regular reporting.
8. Trying to Do It All Yourself
While this may be a necessity at first, trying to do it all yourself as your business continues to grow is extremely stressful. On top of that, stretching yourself too thin can lead to a series of easily avoidable mistakes, especially if you do not have a strong background in accounting and business tax law.
Outsourcing your accounting and bookkeeping is usually a necessary and encouraging sign of a successful, growing business. If you’ve landed on our site looking for an accountant, you’re on the right track.
Call Today!
Don’t let an accounting mistake hurt your business! Call 971-220-6416 or contact us at HELLO@TENKEYLLC.COM to speak to a team member about our accounting services today!
Advisory & Management Services
At TenKey, we pride ourselves on properly guiding our clients with practical strategies that maximize cash flow and minimize tax liabilities. In other words, we want to keep you and your business on track to achieving your financial goals, which is why we offer Advisory and Management Services!
An advisory and management package can include a wide variety of services, such as accounting oversight, financial analysis, leadership development, cash flow budgeting, and metrics dashboard monitoring and reporting.
Accounting Oversight
From established businesses to start-ups, a successful enterprise relies on accurate and insightful financial information. Not only does accounting oversight help you maintain profitability, but it also helps you capitalize on new opportunities as they present themselves.
Financial Analysis
Financial analysis generally falls under the accounting oversight umbrella. Knowing exactly what is going on with your business’s finances makes it possible to identify potential problems and implement money-saving adjustments. That’s why our advisory and management services typically include frequent and accurate financial statements.
Leadership Development
When working with TenKey, you gain a trusted partner that’s just as invested in your business goals as you are. Times of prosperity are usually pretty easy to manage, but let’s face it, most businesses will experience multiple lows throughout their lifecycles. The right leadership can ensure any lows you may experience are as brief and minimal as possible.
In some instances, we may suggest a leadership development program. If you hire us, it’s likely because outsourcing your bookkeeping and controller duties is a cost-effective solution. However, when the time comes, we can also help facilitate a smooth transition to a well-trained salaried employee, such as a controller or CFO.
Cash Flow Budgeting
A cash flow budget estimates all cash receipts and expenditures expected to occur during a monthly, bimonthly, or quarterly time period. Keeping a record of current and projected cash flow can virtually guarantee you always have a clear view of where your cash balances are at.(does that sound weird? Feel free to reword that)
Cash flow budgeting is important yet often neglected. When your business is thriving, knowing what to do with any extra cash flow can take your finances and profits to even greater heights. Our job as your financial advisor is to help get you there!
Metrics Dashboard Monitoring and Reporting
As you can probably guess, a metrics dashboard is a powerful digital tool that allows us to analyze and monitor your key performance indicators, metrics, and data points central to your business. Much like cash flow budgeting, and frequent financial reports, metrics dashboard monitoring can help improve many facets of your business, from digital marketing to sales. Thanks to new technologies like dashboards, it’s never been easier to identify and implement the changes you need to make to reach your financial goals.
Call Now!
If you’d like to learn more about our Advisory & Management Services, our team is standing by to help! Just call 971-220-6416 to speak to a team member or email us at Hello@ TenKeyLLC.com today!
Controller Services in Portland, OR
TenKey offers a wide-variety of finance management and bookkeeping services designed to help keep your business in the black and take it to the next level. Sometimes, this involves advanced accounting responsibilities that usually fall on a salaried Controller or CFO.
In other words, hiring TenKey as a part-time Controller or CFO can save a significant amount of time and money, while ensuring your finances are impeccable.
The Outsource Structure
Our economy is more complex than ever before. New businesses are using cutting-edge tactics to grow and succeed. Older industries are adapting to the changing times to ensure they stay afloat. All of this has led to what some financial experts call a “gig economy.”
The gig economy is largely propped up by independent contractors and outsourcing. The latter is often seen as a cost-effective way to improve or grow the bottom line. Many businesses, big and small, have realized how much they can truly save with part-time workers.
When it comes to Controller and CFO positions, our outsource structure is fairly simple. TenKey provides you access to accounting resources and services that fit your schedule and the size of your business.
What Does an Outsourced Controller Do?
Our outsourced Controller services will be tailored to suit the exact needs of your growing business. Often times, it’s leaders of small businesses and nonprofits that benefit most from hiring an outsourced Controller.
The role we take on as a Controller varies from business to business. The rules and responsibilities we set for your business are based on the services you provide. In general, however, we may perform any of the following duties:
Budgeting and forecasting
Projections and cash flow management
Bookkeeping and management of accounting processes
Inventory management and job cost analysis
Proper documentation of accounting (processes, operation manuals, etc.)
Monthly reports and relevant information
Tax preparation and audit-ready financials
Advice on making the proper adjustments
Strategy for potential scaling
An outsourced Controller can also play a supporting role underneath a salaried CFO to address things like cash flow problems, raising capital, and the implementation of new accounting systems and software.
In some instances, a part-time Controller can even handle oversight on all client accounts and carry out proactive account management.
Why Should You Use an Outsourced Controller for Your Business?
There are a number of reasons that leaders of small and medium-sized businesses are switching to outsourced bookkeeping, accounting, and controller services.
First and foremost, outsourcing is a cost-effective solution that is often cheaper than a salaried Controller.
Beyond that, outsourcing helps stressed, and overworked business owners focus on growing the business rather than tedious bookkeeping and accounting functions.
With over 20 years’ experience in corporate finance and accounting, hiring TenKey gives you access to a team with immense expertise. This is particularly important in finance and accounting. One wrong move or miscalculation can cost a business dearly. Working with TenKey can give you peace of mind knowing your business’s bookkeeping is in the hands of experienced professionals.
What Does an Outsourced CFO Do?
An outsourced CFO has similar responsibilities to that of a Controller. The difference between controller and CFO is primarily one of perspective. Controllers tend to deal with current financial compliance and recordkeeping.
A CFO is usually responsible for every financial aspect and how it all works together on an operational level. Most CFOs are concerned with growth strategy and future performance.
For bigger businesses, an outsourced CFO can help identify and manage a bookkeeper and Controller. The aim is to produce reliable data, providing insights on how we can help you achieve your monthly, quarterly, and overall goals.
Up-to-date financial data lets you know exactly where your business stands so you can make adjustments accordingly.
Unfortunately, many business owners may not know how to make the proper adjustments for growth. A CFO can serve as a much-needed coach or sounding board to make sure you take the right steps. That’s why you want a seasoned veteran in the role, someone with decades of experience.
However, seasoned and salaried CFO can prove to be quite expensive. Outsourced or part-time CFOs provide all of the services listed above for a fraction of the price. Hiring an outsourced CFO means your needs will be met with the lowest possible cost and the highest quality.
Until your business expands to a certain level, hiring an additional full-time employee, like a CFO, may not be the best answer to achieve growth.
As your needs fluctuate, our team will work with you to ensure your cash is deployed efficiently, and every opportunity is maximized. When it’s time to hire additional full-time employees, we’ll be the first ones to let you know.
How Much Money Will I Save By Outsourcing My Controller and CFO?
Most accounting firms will create a custom quote based on your specific needs. The spending range for an outsourced Controller or CFO varies, but you can easily save upwards of 60%. Money that would otherwise be spent on salary and employee benefits can now be put towards growth.
For example, a full-time CFO can cost anywhere from $200,000 to $350,000 (salary + benefits), depending on the size of the company. A full-service accounting and finance team can vary depending on experience and expertise. Let’s say they charge as much as $12,000 a month. That’s $144,000 a year, still far less than that of a salaried CFO.
The Importance of Having a Good Accounting Team Behind Your Business
Simply put, sloppy or inaccurate bookkeeping can cause many financial and logistical issues with your business. Even still, many new business owners tackle finances themselves because a W-2 employee seems too expensive.
Many new business owners also think bookkeeping is simply about maintaining records for taxes and staying above board, which couldn’t be further from the truth.
As we touched on earlier, a Controller or CFO can help you combat many potential problems, like interruptions in cash flow or messy books, while freeing up time to focus on more important issues.
An outsourced Controller or CFO can serve as a stepping stone until you grow to a place where hiring a full-time employee is necessary.
Contact TenKey Today!
Perhaps now more than ever, the right (or wrong) financial strategy can make or break your business. If you are frustrated with the current state of your business’s finances, we are here to help! To learn more about our Controller and CFO services, please call 971-220-6416, fill out our contact form, or email Hello@TenKeyLLC.com today!
6 Bookkeeping Problems Hiring an Outsourced Bookkeeping Service Can Solve
For most business owners, bookkeeping is a huge, albeit necessary burden, especially for those who wear many hats. Our goal here at TenKey Management and Bookkeeping Services is to remove this burden for businesses in Portland, OR and nationwide. Outsourced bookkeeping allows you to focus on what you do best - run your business.
Sloppy bookkeeping can cause many financial and logistical issues. Hiring a professional bookkeeping service like TenKey is one of the best ways to address or prevent this from happening. Below are some of the most common problems we see.
1. Stress and Anxiety
From hiring the right employees, to drawing in consumers, to maximizing your gross revenues, running a successful business is stressful enough. Add bookkeeping to the long list of responsibilities, and you may find yourself pulling out hair. In other words, in-house accounting causes tons of stress and anxiety for small and medium-sized business owners.
The stress and anxiety of working 24/7 can result in poor business decisions that limits growth. The main reason we recommend outsourced bookkeeping is for the owner's peace of mind. Our clients are amazed by the benefits of being able to take a break from work. Both their mental health and the health of their business buoyed tremendously.
2. Access to Updated and Relevant Information
Another significant benefit of outsourced bookkeeping is having access to updated and relevant information. Unfortunately, most people come to us behind on their books, or with books that contain inaccurate information. Some owners also complain of a lack of reports from their current bookkeeper, which is never a good thing.
A sound bookkeeping system should provide the owner with access to updated and accurate information. Knowing and understanding your finances is key to running a successful business, especially if you want to grow. If you do not have relevant financial information, you probably have no knowledge of where your business stands and where it is heading. This is known as running your business “blind.”
Using TenKey for your bookkeeping needs will give you a firm grasp on your current finances, and any relevant information. Your reports will also identify potential opportunities to help you plan for the future of your business.
A big trend right now involves providing regularly updated information through cloud-based solutions. Simply put, all you have to do is let us know how often you want to see updates on your books.
3. Taxes and Audit-Ready Financials
Taxes are by far the biggest complaint we hear when it comes to business owners taking care of their books. If you are continuously filing for extensions, or worse, not filing at all, it’s time to outsource your bookkeeping. It’s time to take a proactive approach rather than a reactive one.
Using outsourced bookkeeping to prepare your taxes not only benefits you, but it also makes accountants, financial institutions, and the IRS happy as well. Why? When you use a professional service like us, there are no questions about the integrity of the data, no concerns over accuracy.
Issues with the IRS can stifle or even end your business. For this reason, a tax review and estimate before the end of the year is one of the most important things you can do.
Our tax review of your business accomplishes two goals. First, it helps you better understand your potential tax liability. This allows you to make advantageous tax moves like end-of-the-year purchases.
Second, our review will provide a tax estimate. This will give you several months’ notice to plan on how you will pay for your taxes in April, or quarterly/EOFY. Tax planning is only possible with an accurate and up-to-date bookkeeping system.
4. Not Enough Time
Most small business owners are well aware that there simply aren’t enough hours in the day. There is always a task that needs to be done, a fire to put out, or a bigger goal to achieve. And this doesn’t take into account the importance of balancing your personal and professional lives to avoid burn-out.
Unfortunately, striking the right balance is easier said than done. One way to ensure you have more time to focus on other parts of your business, and your life, is to outsource bookkeeping. Most business owners find an outsourced bookkeeping service to be a practical, even necessary expense more than anything else.
That’s not to say that you should be totally hands-off. Ideally, you should stay somewhat involved in the bookkeeping process to better understand the financial ins and outs of your business. We recommend our clients participate in crucial responsibilities like financial reporting.
5. Ability to Make Proper Adjustments
As we previously mentioned, without a proper bookkeeping system, you may not have access to current financial reports, which is known as “running your business blind.” Running blind can result in some major issues, like an inability to make the proper adjustments.
In other words, owners who do not know where they stand financially will miss opportunities to improve their business. Regular financial reports allow you to increase cash flow, reduce your overhead, and make quick adjustments that lead to long-term benefits. Flexibility and adaptability are two crucial, and sometimes underrated, components of a successful business.
Our outsourced bookkeeping services allow you to make the proper adjustments and maximize your resources. One way we accomplish this goal is by comparing your budget to actual results. This helps illuminate potential opportunities, as well as problems that require adjustments.
6. Scalability
If you are struggling to scale your business, you may be asking yourself why. Whether you are looking for investors, or simply want to take your business to new heights, a robust and accurate bookkeeping system is paramount.
Scaling a business is stressful enough. Trying to scale with improper and out-of-date bookkeeping is nearly impossible. Our aim as your outsourced bookkeeping team is to ensure your business is ready for growth and even exceeds your goals.
If you do maintain your own books and still experience growth, your bookkeeping needs will undoubtedly change. Explosive growth can be too much to handle for any one person, especially someone who is running a business. Having our team in your corner provides you with a bookkeeping system that meets your growing and changing needs without you having to worry!
Call TenKey Today!
Most small business owners don’t have the time to train and manage a bookkeeping staff, let alone run the books themselves. If you are ready to take your business to the next level or just want to eliminate the headache of bookkeeping, TenKey is here to help! Fill out our contact form, email us (at Hello@TenKeyLLC.com), or call 971-220-6416 to learn more today!
