As computers became more of the norm in homes and offices, the accounting and bookkeeping departments began to dwindle. People and small businesses were going to do their own bookkeeping with the latest in accounting software. They were going to save money on this expense.
Bookkeeping jobs were not as plentiful. You were now expected to have more duties in an office environment, because bookkeeping was suppose to be quick and easy with simple bookkeeping software.
But things seem to be changing just a bit. Yes, simple bookkeeping software does make keeping the income and expenses easier, but there is still the problem of someone imputing the information. It was now one of those extra chores you had to do in your business. The TV commercials, make it look easy. They will show a business owner doing his own books with a smile, but in reality this doesn't always happen.
Unless you know how to do bookkeeping, even with the simple bookkeeping software, you are going to run into trouble if you don't take the time to input the information on a regular basis.
As a bookkeeper for a small business, I have noticed over the years, the changes in this type of job. As many businesses tried to cut back on expenses, they would take on way too many jobs, and wear too many hats. As simple as some of these programs are, you still have to organize your receipts and invoices, and input them into the system. Plus if you are a corporation or limited company you HAVE to use an accountant for your year end.
So, how many people do you know with small businesses, that take a shoe box of receipts and invoices to their accountant at the end of the year? My own accountant told me, that for years they offered bookkeeping services, that dwindled when the simple bookkeeping software came in, and was advertised as a way for the business owner to take control of their own business. It was suppose to be really easy, and the program would magically spit out reports.
Many bought the programs, with good intentions of keeping track, but like many small businesses, they were just stretched too thin. Now my accountant is seeing a turn around and people are going back to using dedicated bookkeepers to keep track of their businesses, even if it is only part time.
There are many great businesses out there, that do wonderful work, but because they lack the drive or interest to sit down with their paperwork, that simple bookkeeping software, is just sitting on their hard drive with nothing entered.
Horror Story - This is a shame, because I just recently tried to help someone with their business, that was about to be shut down by the government due to lack of tax payments.
The reason this is sad, is that it was not due to his business not working, he had plenty of money in his business account. His business was successful. It was simply from not doing his paperwork and paying attention to bills. His cell phone was cut off for lack of payment, he simply forgot. So, now the government had sent him 3 reminders, he kept meaning to sit down with his simple bookkeeping software and figure out taxes etc, but just got busy, and now they froze his bank account. His business came to a grinding halt.Credit: amazon.com
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These may be the extreme, but this is a true story. Now the government is involved which can make things messy. I could no longer help him, he had to now have a review done by forensic accountants to find out just how much past due taxes he owed. You can just imagine how much that is costing him. Plus it is taking his time away from a business that he is now struggling to keep.
So, if you run a business like this, then you should consider hiring a bookkeeper. Bookkeeping can keep you on top of your bills and revenue agencies.
Keeping the books is a great way to know whether your business is making money or not. If you hire someone to do this part for you, then you can concentrate running the business. The added expense of a bookkeeper will be worth it in the end.
I do the bookkeeping for my sister's business. She had simple bookkeeping software on her computer, and a stack full of receipts and papers in a basket. She just couldn't get her brain wrapped around the idea of sitting there and working out numbers, other than her projections and estimates for projects. There just wasn't the time.
So, I took on the job part time. I let her know when her source deductions are do, and how her business is doing. I also pay her business bills, and stay on top of things with a report each week. She knows exactly where she stands.
So, yes there are simple bookkeeping software programs out there, but unless you like doing this part of your business, you may still need to get help. Too many businesses are suffering simply because of poor paperwork. If you struggle with the trust factor, then consider a family member. If they like working with figures, you could send them on a simple course on how to do bookkeeping. There are many online, plus some of the simple bookkeeping software companies will offer courses for computerized bookkeeping.
Knowing how to do bookkeeping is something most business owners should know anyways, just so they can stay on top of their business. But they should consider hiring a bookkeeper to actually keep on top of this job. Yes, things got easier for the bookkeeper by being computerized, but someone still has to organize and input the data, and most business owners would rather spend their time making more business.
So, finding bookkeeping for small business services, through your accountant or a family member is a good way to go. If you can spend the same time looking for and working on your main business, then the added expense of bookkeeping for small business will be well worth it.
Bookkeeping for Small Business - Keep your business working like a well oiled machined, get a bookkeeper involved, or learn how to do bookkeeping yourself. But however you do it, you need to keep good records, for your business and the TAX department.