Why is it better for small businesses to work with local bookkeeping firms? The answers have less to do with economics and more to do with the power of relationships. Building up a small business means you have to cooperate with a surprisingly large number of other people. And we’re not just talking about the customers you need to win over. Let’s take a look at how local bookkeeping partners can help you work with the people around you.
1: Do you need a full-time in-house bookkeeper? Probably not!
For a new business that’s just starting out, it doesn’t make much sense to hire a full-time staffer to do the accounting. In fact, many small business owners handle it themselves. It often involves only a few hours of extra work per month. That assumes you don’t let it pile up into a terrible backlog, of course.
If you aren’t so keen on doing numbers and data entry, though, a local bookkeeping firm can be your best friend each month. Those month-end reconciliations aren’t going to do themselves. Letting a bookkeeper from a local firm handle them for you can be a real lifesaver. The alternative of ignoring them is an obvious disaster, but the benefits go beyond that. Bookkeepers save you many hours that you can put back into running the show! The increase in attention you can give to your fledgling company means better growth. Eventually, it will make sense to hire your own in-house accountants and bookkeepers. Your local firm can get you to that point.
2: A degree or two of separation goes a long way when it comes to company finances.
Another important factor to consider regarding your bookkeeping is the issue of privacy. Do you want to keep your company’s financial information in the hands of someone who could easily share it with other employees? We’re not suggesting that this would inevitably happen with an in-house bookkeeping team, but it does happen.
It’s important to be honest and open with your workers about the state and success of your company, but for security purposes, it can be a very good idea to keep your financial processing off-site. That ensures that only the members of your organization who you approve are able to have access to your financial information.
3: Who best understands your financial and economic context? A local bookkeeping firm!
Whether times are good or bad, whether the money is flowing in fast or draining out, you want to work with someone who understands why. Anyone can investigate the patterns that appear, but a local bookkeeping company will get it faster.
When you work in the same city as your clients, you’re subject to the same economic ripples that move through the region from time to time. You work in the context of the same labor laws and environmental regulations. You’ll probably even get hit with bad weather at the same time! All these things can have an effect on the balance sheets and income statements, and local collaborators will know why.
4: Local partners and your local CPA make tax time much friendlier.
Every business needs to work with a Certified Public Accountant to deal with their taxes. Tax law in the USA is way too complex for anyone who’s not a specialist to handle. Sure, you can fill out a form on your own. Unless you know the ins and outs of the code, it’s anyone’s guess whether you were able to maximize your deductions. Your bookkeeper also doesn’t know tax law. What they can do, though, is work in sync with the CPA of your choice.
It may seem redundant to work with both an accountant and a bookkeeping firm. That’s not the case, though. Each role is distinct and beneficial to your company. Your bookkeepers handle the daily recordkeeping, as well as detailed reporting each month and as needed. “As needed” includes providing the CPA with organized information that makes their job easier as it does for yours. That means getting a better result from your tax preparations!
5: People you know personally are handling your finances.
The most important benefit of local bookkeeping is precisely that it’s local. You can get there, and without a fuss. You can meet with each other, at each other’s offices, or over lunch in your town. You can still really get to know the people who you’re putting in charge of your company’s money matters, even though they work in a different office. It’s so much easier to build up a relationship of trust that way.
For local bookkeeping in the Lehi, Salt Lake City, and Provo and Orem regions of Utah, consider SyncLedgers! You can contact us today to explore and get started.