How Much Does Catch Up Bookkeeping Cost?
When you get behind in your books, you might find yourself sweating a bit. In addition to being worried about how you’ll get caught up, you may also be concerned about the catch-up bookkeeping price you’ll have to spend to bring your financial data up-to-date. Most business owners find that catch-up bookkeeping services are well worth the price. But before we cover the actual cost of a catch-up bookkeeping service, let’s explore the reasons why businesses should consider relying on an accounting firm to ensure that their books are clean and accurate. Why Catch-Up Bookkeeping Is So Important What is catch-up bookkeeping? As the name might suggest, catch-up bookkeeping is the practice of bringing your company’s financial records up-to-date, ensuring that all income and expenses are recorded so that you can have an accurate picture of your company’s financial health. Why is this so important? When your books are clean and current, your business will benefit in the following ways: Simpler Tax Preparation Your business taxes depend on your income. Having accurate books ensures that you’ll be able to accurately report your income for the preceding tax year. If you get books caught up before you file your taxes, the tax preparation process will be simple and straightforward. Plus, you’ll be in a better position to receive tax deductions based on business expenses from the past year. Conversely, your outdated books can lead to errors, which can lead to major expenses down the line. For example, if you underreport your income, you’ll have to complete additional paperwork to make the correction. It’s possible you’ll face an additional penalty. Further Access to Business Loans Small business loans can be used to grow your business, expand your inventory, or cover marketing expenses. But before you can be approved, your lender will likely ask for your current financial statements. Your company’s financial health will determine the kind of loan you receive and how much you qualify for. If you’re behind on books, you won’t be able to properly communicate your existing assets, which could jeopardize your eligibility for a business loan. Failure to keep up on your finances could limit you to a smaller loan or a worse interest rate. Better Strategic Focus Every entrepreneur should regularly review their financial performance to find ways to hone their strategies. Accurate financial records can highlight areas in which you need to cut expenses, while also illustrating patterns in spending. With this information in hand, you can better plan for the future. In other words, it’s essential to have accurate books when you want to refine your company’s strategies. Your financial performance can be used to set long-term and short-term goals, indicating when you’ve reached these benchmarks. Healthier Cash Flow When you have an accurate record of your company’s income and expenses, you’ll better understand the capital you have to work with. That way, you can manage your cash flow, directing funds toward particular projects or expenses that are likely to bring a high return. When your books are outdated, you’ll be in the dark when it comes to your working capital. Not only does this hamstring your ability to make future decisions, but it can also prevent you from covering your expenses or paying your employees on time. Catch-up bookkeeping can get you back on track while giving you a working knowledge of your available assets. Greater Peace of Mind Finally, there’s simply not enough to be said for the peace of mind that comes from having your financial data handled by a team of professionals. While it could be tempting to try to take the time to catch up on your books by yourself, even the most skilled entrepreneurs can struggle with the terminology and intricacies of accounting software platforms. By partnering with an accounting firm, you’ll gain confidence in your business, knowing your books are checked and maintained by trained professionals. With this weight off your shoulders, you can put your focus where it belongs — managing your business. The Cost of Catch-Up Bookkeeping No matter how behind you are in your books, you can rely on a catch-up bookkeeping service to help you get up to speed. But at what cost? Let’s compare the catch-up bookkeeping price to the value you receive from these services. Catch-Up Bookkeeping Price How much does catch-up bookkeeping cost? Costs can vary a bit, based on the company you choose to use, as well as how far behind you are in your books. The cost can also be impacted by how well you’ve organized your financial records and receipts beforehand. For example, it can take time to reconcile your bank accounts, which can drive the cost of these services higher. At xendoo, we proudly offer catch-up bookkeeping for small businesses starting at $295. Prices can increase depending on the needs of your business, but you’ll have access to our reliable team, who will work hard to make sure your books are clean and accurate. Catch-Up Bookkeeping Value By now, you’ve probably come to recognize that the small business bookkeeping price is well worth the return on your investment. While it’s possible to update your books yourself, most entrepreneurs lack the time and patience to address several weeks’ worth of outdated entries. Besides, your focus belongs on the activities that can expand your business, not on all of the administrative details! The cost of catch-up bookkeeping for small businesses is therefore a relatively small price to pay, as it can let you focus on setting goals for the future while a financial team sorts out your past. Do More, Worry Less At xendoo, we believe that entrepreneurs should spend their time dreaming about the future, not losing sleep over outdated books. Rather than trying to fix the problem on your own, consider contacting our team of financial experts. We can provide you and your business with superior service, ensuring that your books are clean, up-to-date, and accurate. When you sign up today, you’ll get 30 days to
The Top 5 Benefits of Catch Up Bookkeeping
Whether they coach chess players or sell organic puppy food online, every small business owner shares a common driving force: a passion for growing their business. Increasing sales and gaining new customers is one part of the equation. Consistent bookkeeping provides the financial insight needed to strategize for long-term success. With so many obligations resting on the business owner’s shoulders, it can feel like there are not enough hours in the day to accomplish every task, and eventually the books may fall behind. Even if the books are only behind a few weeks, up-to-date records are crucial for the financial well-being of every business. Catch up bookkeeping accelerates business growth by increasing financial visibility, which enables business owners to make decisions based on accurate information and remain tax-compliant throughout the year! In this blog post, we are exploring the top 5 benefits of catch up bookkeeping! Reliability in Your Opening Balance The Opening Balance is the amount of money in your bank account at the beginning of a new financial period, such as the start of the month. Be aware that your bank account does not necessarily reflect the exact amount of cash that is available to spend. For example, if your Opening Balance states that you have $50,000, but $20,000 worth of checks have not cleared yet, the actual balance is $30,000. The best practice is to consult your updated accounting software or financial statements, which provide insight into your true financial position. The financial statements report revenue, expenses, and profitability, all of which contribute to the Opening Balance. They also guide decision-making and reveal opportunities for business growth. The more up-to-date your books are, the more reliable your financial statements (and Opening Balance) will be! If your bookkeeping is behind, there will be little to no financial data for that time period, which means you will not know your true Opening Balance for today. For example, if your account was reconciled in January, but February was skipped, the Opening Balance would be incorrect for March. This could skew your numbers going forward, and costly choices could be made based on inaccurate data. This could also affect future bank account reconciliation, as well as the balances in your revenue, costs, and expenses. It is a vicious cycle. Catch up bookkeeping corrects these issues and provides clarity and accuracy in your financials. Once your books are caught up, keeping them up-to-date becomes second nature. Financial Accuracy Through Bank Account Reconciliation A bank account reconciliation is performed to confirm that your accounting records match the information in your bank account. It is an opportunity to identify and correct any bookkeeping errors before the financial statements are finalized, as well as detect and prevent fraudulent activity in your bank account. Bank account reconciliation also ensures that you are accurately reporting your income to the IRS. The best practice is to reconcile your bank account once a month. Proper bank account reconciliation can only be accomplished when the books are up-to-date. By getting your books caught up, you can ensure the reliability and accuracy of your financials each month. Cash Flow Management Catch up bookkeeping can have a significant impact on cash flow. When your books are caught up, you can pinpoint how and when cash enters and leaves your business each month. This delivers a deeper understanding of your cash needs, so you can create a plan for cash flow management. For example, as your books are caught up, you may uncover past due invoices, or find that you are sending out vendor payments before you receive the cash needed to cover them. With this insight, you can monitor your Accounts Receivable to ensure you are paid in a timely manner going forward, and find solutions for the timing of your own payments. You can also forecast future cash needs to be confident you have what you need for continued operations. Click here to learn more about cash flow. Insight into Net Income Keeping your books up-to-date plays a vital role in calculating your bottom line, or Net Income, which is the profit that remains after all costs and expenses are subtracted from revenue. In order to know your true Net Income, all business expenses must be accounted for through accurate and timely bookkeeping. This understanding of your Net Income provides the opportunity to increase your bottom line. Getting your books caught up is also essential when applying for loans. Creditors and investors examine Net Income when deciding to invest in a business, as it highlights the business’s ability to pay back loans efficiently. Catch up bookkeeping determines your bottom line, so you can understand and increase the profitability of your business, meet loan requirements, and secure funding for your next venture! Click here to learn more about Net Income. Tax Compliance As tax season draws closer, a concern that many business owners have is under or over reporting their earnings, and missing out on deductions. They may also experience a back and forth with their Tax CPA over missing documents and gaps in their financials. Breathe a sigh of relief – catch up bookkeeping takes the headache out of tax season! By getting (and keeping) your books caught up, you can identify the deductions you qualify for, maximize your tax return, and stay compliant all year long! Get Your Books Caught Up with xendoo Behind on your bookkeeping? You are not alone! 25% of business owners are behind on their books. Get a fresh start with catch up bookkeeping services from xendoo, so you can take your time back and focus on the future of your business. Let’s chat! We would love to get to know you and your business. Click here to schedule a free consultation.
Fallen Behind on Bookkeeping? Here’s How to Catch Up
Tax season can be stressful, especially if your books are behind, inaccurate, or both. We estimate that roughly 25% of small businesses seek information on how to catch up on business taxes and get their financial records in order. The benefits of clean, accurate books extend far beyond tax season. When your books are up to date, your business will be better equipped to make strategic financial decisions, analyze expenses, and manage cash flow. Conversely, when you get behind in your books, it doesn’t just make it harder to prepare and file taxes. Outdated or inaccurate books can limit your ability to cover your expenses, pay your employees, or secure a small business loan. You’re probably reading this because you already know you’re a little behind on books. The biggest decision to make is whether to try to get your books caught up on your own or secure the assistance of a catch-up bookkeeping service. We’ll help you decide by covering the pros and cons of both approaches in this article. The Pros of DIY Catch Up Bookkeeping When you’re considering how to catch up on business taxes, you might decide to handle your own books. That’s not a bad strategy, really, since DIY-bookkeeping offers the following advantages: Costs Less Let’s face it: today’s business owners need to cut corners any way they can. Rather than hire an in-house bookkeeper or outsource your bookkeeping needs to an accounting firm, you can simply catch up on your books yourself. If you’ve already got some experience in filing taxes and managing your accounting needs, this can be an area where you can minimize expenses. For a full overview of the costs of catch up bookkeeping, check out this post here. Intimate Knowledge of Your Business No one knows your business better than you do. When you handle your own books, you’ll have an intimate knowledge of your income and expenses and will be in a better position to make updates and correct errors as you proceed. This consideration might be especially true if you’ve collected a lot of receipts and paperwork on your own. Having these documents on hand can make it easier to record income and business expenses as they happen, and by handling your own bookkeeping, you’ll be better able to identify expenses. Privacy As a business owner, you might be reluctant to hand over your sensitive financial data to a third party. By handling your own books, you eliminate all possible breaches in your data security, and you keep your business information limited to your eyes only. The Cons of DIY Catch-Up Bookkeeping There’s a reason that so many small businesses outsource their needs to a catch-up bookkeeping service. While there are many business tasks that you can handle on your own, bookkeeping isn’t always one of them and there are so many benefits to catch up bookkeeping. Business owners often discover that the bookkeeping process can be: Time-Consuming Stop and think about this for a minute. How did your books get so behind in the first place? For a lot of entrepreneurs, it comes down to a lack of time. But if you didn’t have time to maintain your books, how likely are you to find time to catch up on your books? This contemplation actually brings us back to the question of money. Sure, handling your own books will cut down on your administrative expenses, but at what cost? Your efforts are better spent on the revenue-generating activities of your business, not the administrative details of your back office. Confusing It can be a challenge to get books caught up in time for tax season. Accounting terms and software tools aren’t always easy to navigate, especially without some degree of specialized training. And that’s to say nothing of the jumble that can occur when you get behind in your books. This confusion is why it’s best to rely on an accounting professional who knows how to catch up on business taxes. They can sort through the mess on your behalf and bring clarity to your books, so you don’t have to sweat the process when it comes time to pay your taxes. Inaccurate The more tasks you’re juggling, the easier it is to make mistakes. But errors in your books can cost you, especially when it comes to tax preparation. Reporting errors can change the actual amount of taxes you owe, and if you underreport, you could be subject to penalties. Having access to a team of financial professionals can ensure that your books are fully up-to-date, as well as free from any inaccuracies that can cause problems for your business. Plus, a financial professional may be able to help you maximize your deductions, saving you money and enhancing your profitability. Get Started Now If we’re honest, most of us make a plan to get started “tomorrow.” But by the next day, we put it off once again. The best time to get started is now. With tax season looming on the horizon, you can’t afford to wait for another “tomorrow.” In fact, the more you put it off, the more your overdue books can snowball into an even messier problem. This time crunch means that whether you plan on catching up on your own books or relying on a professional service to provide catch-up bookkeeping for small business, you’ll want to get a plan in place so you’ll be prepared for tax season. How to Catch Up on Business Taxes Faster Than Ever The expert team at xendoo has already provided catch-up bookkeeping for small business owners across the country. We can bring your books up-to-date so that you’ll be prepared for tax season and put you on the road to greater financial control. How much does catch-up bookkeeping cost? Your final price depends on how far behind you are, but xendoo can provide catch-up services starting as low as $295. The real value is found in the peace of mind you get, knowing your
xendoo vs. QuickBooks: The Difference
As more small businesses crop up throughout the country, many business owners are starting to realize that a significant task in managing a company, big or small, is bookkeeping. From choosing an accounting method to managing transactions to setting up payroll, bookkeeping can be an extremely confusing and time-consuming process! That’s why many business owners decide to get bookkeeping help, whether they use a form of online bookkeeping software or hire an accountant. For many companies, the best move is to do both! When it comes to running a business, you may have debated the benefits of providers like xendoo and tools like QuickBooks. But which option will work best for you? Let’s break it down and discover what will work best for your business: xendoo vs. QuickBooks. What Is Accounting Software? Most of us are familiar with the term “software.” Basically, this refers to any sort of program or application you run on your computer that helps you perform a task or complete a goal. Software can come in many forms, from music players and photo editors to games and word processors. Accounting software is a program or application that assists you with accounting or bookkeeping tasks. Also referred to as bookkeeping software, it can assist your business with functions like: Accounts payable Accounts receivable Purchase orders Sales orders Payroll Reliable accounting software will also store your company’s financial data. Some companies prefer to create their own accounting software to fit their specific needs, while other businesses can manage best by purchasing third-party software packages like QuickBooks. In some cases, a combination of in-house and third-party software is also possible. The greatest advantage to any accounting software is that it’s available online at any time and can be updated in an instant. When you compare that to the traditional form of bookkeeping with pen and paper, you can see why investing in online bookkeeping software is so popular in the 21st century! Why Do You Still Need an Online Accounting Service? As a business owner, one of your many responsibilities is finding ways to save money for your business. For a lot of enterprises just starting up, doing online bookkeeping yourself seems like a great way to cut costs. Unfortunately, trying to achieve cost savings by performing highly complex professional work yourself will likely end up backfiring! Even seemingly small mistakes could also actually cost you a lot of time in the long run. Additionally, you may miss out on important tax benefits, deadlines, and requirements if you simply try to do it all on your own. In the battle of xendoo vs. Quickbooks, here are some of the other benefits that you can expect from your online accounting service: Bookkeeping When you work with xendoo, a dedicated team of experts will take care of all of your online bookkeeping needs — and they’ll do it on time. In less than an hour, we can set up your accounts and get you connected in a view-only mode. Once all of that is ready, we’ll reconcile your books each week to ensure that everything is up to date and in order. This leaves you the time that you need to do other kinds of practical work that will help grow your business. While we take the time to keep all of your books in a row, you can check in on your finances whenever you’d like. With our customer portal, you receive monthly reports that track everything you need to stay in the loop. Even if you can’t spend the time to go through all of the details, you can trust that our experts will. Catch Up Did you know almost a quarter of all business owners report that they are currently behind on their bookkeeping responsibilities? That’s why another great accounting service offered via xendoo is the ability to provide catch up bookkeeping when you’re behind—not something an online bookkeeping software alone can manage! So forget about the stress of catching up on your finances by yourself. At xendoo, we can get all of your financials up to date, whether you are a few months behind or a few years behind. Taxes While it would be much easier just to pretend they don’t exist, paying your taxes as a business owner will always be a part of the job. Going through the filing process and wondering whether you’re doing it right will likely cause you to lose some precious sleep. xendoo can take on this major responsibility for you, helping your business to find ways to make the most of tax season. When your business has its books in order, filing taxes is much easier. We won’t just connect you with a random CPA during tax season, though—you’ll have a dedicated, certified account available at all times, whether it’s on April 14th or October 14th. How Your Accounting Team Leverages the Best Software Because these accounting programs can manage to save you time and money, we wouldn’t expect you to simply throw them out the window and lose everything you’ve already invested. That’s why your xendoo accounting team can fully integrate with practically every software out there, whether it’s QuickBooks, Xero, Amazon, Shopify, or any other program. Your team will work with the software program you’ve got to find better ways to manage your finances. Think of it like this: The software is your car and xendoo can be the driver. We’re not just any driver, though; we’re a Formula 1 champion racer. Your team will be available to you with whatever form of communication is most comfortable for you: email, call, or text. At xendoo, our professionals aren’t just there for your business transactions—they can even help you with your personal tax returns! You can rest assured everything will be monitored, managed, and maintained, all without having to lift a finger. xendoo vs. Quickbooks: The Final Considerations Whether you run a small cafe with less than $20,000 in monthly expenses or an up-and-coming restaurant with more than
How Do I Pay Myself and My Taxes as a Sole Proprietor?
Where to Begin? Businesses are created because business owners have a passion that needs to be pursued. They may be changing the world and even their own lives. Payroll, however, is most likely not their passion. Yet, every business owner faces the unique challenge of figuring out how to pay themselves. Paying yourself as a sole proprietor can feel daunting. How much do you pay yourself? How do taxes factor in? Unless you have a side hustle as a financial advisor, it can be difficult to know where to start. Self-Payment, Simplified Breathe a sigh of relief. Paying yourself as a sole proprietor is not as complicated as it seems. Tax filing is simplified too! In this blog post, we will walk you through paying yourself as a sole proprietor! How Do I Pay Myself? You can pay yourself as a sole proprietor by taking an Owner’s Draw. An Owner’s Draw differs from a regular salary in that you can take money from your earnings as needed. Depending on how well your business is doing, you can take more or less, allowing for flexibility in your payments. If your business is profitable, start by subtracting liabilities (any debt your company owes) from assets (items of value the company owns that will provide benefit in the future). The remaining amount is referred to as ownership equity, which is what you will take your draw from. Once you decide on an amount to take (more on that in a moment), it can be transferred from your business bank account to your personal account. Because the Owner’s Draw is taken from ownership equity, it reduces the funds that can be used for the business. Sole proprietors must balance how much they need to support themselves and what their business needs to thrive. How Much Do I Pay Myself? To set an appropriate payment for yourself, you have to determine your projected profits. To estimate how much you can draw and when you must: Set up a separate business bank account. As a sole proprietor, you do not need to incorporate or register your business. The business name will default to your legal name unless you file a DBA (doing business as), which allows you to operate under a different name. Once your DBA is set up, you can open a business bank account. This ensures that your personal and business expenses stay separate, and creates an accurate picture of your business’s finances. Keep your books up to date. Keeping detailed records of your income and expenses will help you identify when cash flows into and out of your business, and how cash flow may change over time. An online bookkeeping service will be able to take this task off your plate, saving you time and stress. You will also receive monthly reports that give you actionable insights to help you make the best decisions for your business. This will help you determine your projected profits and when you should take your draw. You can start out by paying yourself only what you need to meet your basic needs until your business breaks even. From there, you can increase your pay to your “market value”. You can increase your pay again once your business is producing consistent profits. How often you choose to draw is up to you. Some may follow a bi-weekly schedule, others may draw as needed. It ultimately depends on your personal preference. How to Pay Your Taxes Sole proprietorships are considered pass-through entities, meaning the IRS views your business, personal assets, and liabilities as one and the same. Because of this, you are only required to file a personal tax return. Income and expenses related to your business are accounted for on your individual Form 1040, Schedule C. While the Owner’s Draw is not subject to federal or state income tax, it is also not expense-able. It will appear under the total net income of the business, which is taxable. Be aware that sole proprietors are required to withhold self-employment taxes, which contribute to Social Security and Medicare. As of right now, the self-employment tax rate is 15.3%. So, how can you maximize your tax savings? Business tax preparation and filings are included with almost all of our packages! Your online Tax CPA takes care of filing your Schedule C that goes along with your personal tax return to itemize business deductions. xendoo is Here for You The good news is that you do not have to figure it all out on your own. xendoo Online Bookkeeping is here to help! We move at the speed of business, so you can make informed decisions faster – like deciding how much you should pay yourself as a sole proprietor! Get started with a free trial. Ready to take the next step? Schedule a free consultation with a xendoo accountant today! Want to learn more? Learn the difference between the business entity types here.
xendoo vs. Pilot: Comparing Online Bookkeeping Services for Small Business Owners
Bookkeeping is critical to the financial health of every business, but business owners rarely have the time (or desire) to manage it themselves. To take their time back, many business owners choose to outsource their bookkeeping and accounting. There are many options available, from traditional CPAs to tech-savvy online companies. So, how do you choose the right financial partner for your business? Today, we will take a look at two popular providers: xendoo Online Bookkeeping and Pilot. Both provide quality online bookkeeping and tax services, but there are some key differences in features that will help you weigh your options: Online bookkeeping and tax services Accounting software Accounting methods In this blog post, we will explore these key differences so that you can make the best choice for your business! Online Bookkeeping and Tax Services Most of xendoo’s online bookkeeping packages are tax-inclusive, with prices starting at $295 per month. Plans can be paid monthly or annually, whichever works best for you. We reconcile your books weekly, and deliver your reports as early as the 5th business day of the month, depending on the plan you select! Pilot offers three online bookkeeping plans, with prices starting at $599 per month, all of which are paid annually upfront. Tax services are available at an additional cost and must be purchased separately. If you are behind on your bookkeeping, xendoo and Pilot also offer catch-up services so you can get previous months’ books in order! Accounting Software Most small business owners manage their finances in a variety of ways, the more software options, the better! That is why xendoo works with both Quickbooks Online and Xero. Depending on the nature of your business, one of these options will be able to meet your specific needs. Pilot only offers Quickbooks Online. If you are already working in Xero, they will have to switch you to QBO and leave your history behind. While QBO is a solid option, it may not be the ideal choice. Accounting Methods Accounting methods determine when income and expenses are recorded in your financial statements. They affect how cash flow, profitability, and business performance are tracked. The method used depends on your business and tax needs. xendoo and Pilot use different accounting methods, with one exception: cash basis accounting. Depending on the plan you select, xendoo will use a cash basis or modified accrual basis. Pilot defaults to an accrual basis on all plans, but you can request a cash basis. Cash basis accounting is a method in which revenue is reported only when cash is received, and expenses are noted when money leaves your account. It is often used by small businesses because of its straightforward nature. Accrual basis accounting records income once it is invoiced to the customer and records expenses once the bill is entered (even if it has not been paid yet). This is a complex method, used mostly for businesses with $5 million or more in annual revenue. Modified accrual basis accounting combines the best aspects of accrual and cash basis. It recognizes prepaid expenses and offers accrual for inventory and other Balance Sheet categories. As accrual basis accounting is the most complex method, it is the most expensive and time-consuming method to complete. Even if your business needs to account for inventory and accounts payable and receivable, the accrual basis method may not be necessary. The modified accrual method can meet your business needs in a cost-effective and timely manner. We recommend speaking to your accountant to determine the ideal accounting method for your business. Try Us Out xendoo offers a free trial in which we complete your bookkeeping from the previous month, plus the Profit and Loss Statement and Balance Sheet, so you can experience the xendoo difference for yourself. If you decide that xendoo is not the best fit for you, we will gladly connect you with others in our network so you can find your ideal financial partner. The data and reports are yours to keep in your QuickBooks Online or Xero account. If you choose to partner with us, you will have access to a comprehensive customer portal, with data-driven visualizations, and your financial reports at your fingertips 24/7. At this time, Pilot does not offer a free trial. They do weekly demos where business owners can tour the platform and ask questions. For a brief summary of how xendoo and Pilot compare, check out the chart below: Who is Right for You? It depends! Every business owner needs financial visibility into their numbers for effective decision-making and growth. If you are looking to simplify your books, xendoo is the best choice for timely, accurate, and worry-free bookkeeping, accounting, and tax services for you and your business. xendoo is a team of real people that care about you and your business. Allow us to handle the hassles while you put more money in your pocket, reduce your stress, and get back to doing what you love. So, are we a fit for your business? Let’s talk! Schedule your free consultation today!
The Best Small Business Bookkeeping Solutions
As a small business owner, your time is best spent on the revenue-generating features of your business— not hunched over a computer screen scrolling through QuickBooks! Thankfully, a reliable bookkeeping solution is just a click away. What should you look for in an accounting or bookkeeping service? Today, we’ll highlight five of the best small business bookkeeping service solutions. Online Bookkeeping Service for Your Small Business When your business is small, it can be tempting to try to handle the books yourself in order to cut costs. Even if this works for a while, it’s simply not a sustainable model. Small business owners should be focused on growing their core business, not on the back-office demands associated with small business bookkeeping. Adding another staff member often seems like a natural solution, but modern bookkeepers can cost well over $40,000 per year. Not only do these costs eat into your profits, but the addition of office personnel could also take up valuable space in your facility. Online bookkeeping services provide a simple, elegant solution that can save you time, money, and the headaches you get from trying to juggle the needs of your small business! Today’s accounting firms can handle a wide variety of SMB bookkeeping tasks, including: Invoices Payments Costs Expenses Financial statements Corporate tax preparation Payroll By outsourcing your needs to an online accounting firm, you gain the benefit of industry-leading expertise, all without breaking your budget. Some business owners are leery of outsourcing their sensitive financial data to an online company. But at xendoo, we value communication with our clients. Our bookkeepers and CPAs are available by phone, text, and email, so you’re never out of touch with our skilled team. In fact, many customers are surprised at the ways that small business bookkeeping solutions increase financial transparency. This is possible because your financial data is instantly available to you at any time, no matter where you are. This may be especially important for businesses that process digital or online transactions, providing up-to-the-minute reporting regarding your cash flow. Catch-Up Bookkeeping Services Roughly one out of every four business owners are behind in their books. Sound familiar? Sure, you keep telling yourself that you’ll get caught up “someday,” but the longer you ignore the problem, the worse it will become. Some small businesses can quickly find themselves months or even years behind in their bookkeeping. This is deeply problematic because it prevents entrepreneurs from knowing what’s really going on in their company since they lack access to current financial data. Getting behind in your books also can leave you vulnerable to fines and audits when it comes to taxes or payroll. If you ever need a business loan, lenders will expect to see copies of recent financial statements. Without accurate, up-to-date information, you may be denied a crucial loan. So what can you do if you do get behind? Small business owners can take advantage of “catch-up” services. As the name suggests, these small business bookkeeping solutions are designed to bring your financial records fully up-to-date. If you’ve gotten behind in your books, this bookkeeping solution just might offer you a huge sigh of relief. Accurate, current financial data will provide you with a fuller picture of the health of your business, which can enable you to better plan for the future. At xendoo, we don’t merely offer catch-up bookkeeping services to bring your books up to date — we keep you up-to-date by reconciling your books on a weekly basis! This gives you the freedom and confidence to focus on your business, knowing your financial needs are in expert hands. Business Tax Preparation and Filings Taxes represent a unique SMB bookkeeping demand. On the one hand, tax preparation is a yearly chore, but on the other hand, business tax codes can be complex, and ever-changing. That is why many business owners look for small business bookkeeping solutions that can assist with the complexities of tax preparation and filing. Not only can a professional accounting firm save you money, but they can also provide the best protection from common errors that can leave you and your business vulnerable to audits. Keep in mind that your filing status depends on the structure of your business. Partnering with an online accounting firm like xendoo can ensure that you file the appropriate form. You can feel confident when you’re working alongside a CPA who is familiar with businesses ranging from partnerships to LLCs to S Corps and beyond. Additionally, consulting a CPA can also help you to take advantage of existing tax codes, maximizing your deductions and ultimately saving money. These bookkeeping solutions not only take the hassle out of tax season, but their tax strategy and planning services can help you keep more of your profits. Bookkeeping services can also assist you with your personal income tax preparation. This can be a lifesaver, as business owners often face tax situations that are complex. xendoo offers personal tax preparation as an add-on to many accounting packages. Accounts Payable and Receivable One of the reasons that small businesses fail is that they don’t always get paid on time. Some businesses simply don’t know how to collect money from overdue accounts. We Unfortunately, there are many cases in which business owners can only collect their debts through persistent effort and regular contact with their clients. But once again, today’s entrepreneurs often lack the time for this kind of due diligence. Online services can provide small business bookkeeping solutions that automate and manage your invoicing and collections process. At xendoo, we rely on advanced online bookkeeping software that can be used to create and submit invoices, collect payments, and monitor every step of the process. Most businesses will likewise owe money to vendors and suppliers, and this process can likewise also be managed remotely by an online bookkeeping service. By relying on this same service for tax planning and preparation, small business owners can have peace of mind that their income and expenses will
How Franchisors Can Build a Strong Item 19
How Much Money Can I Make? As franchisors work to sell franchises, one question they will always be asked is, “how much money can I make?”. The answer to this question can be found within one section of the Franchise Disclosure Document: Item 19. In order to create a compelling Item 19, franchisors need financial data on the performance of each franchise location. Typically, it is up to the franchisees to keep their books up to date and share that data with the franchisor. But, like many small business owners, they juggle countless responsibilities, may not understand the complexities of accounting, and bookkeeping understandably falls by the wayside. An Expert Team Without the right tools, building a strong Item 19 can feel like a massive undertaking. But, with the support of a franchise bookkeeping team, franchisors can receive timely, accurate information that will help them build a compelling Item 19! What is Item 19? Item 19 is a section in the Franchise Disclosure Document (FDD), a document that must be presented to individuals who want to purchase a franchise. The purpose of Item 19 is for franchisors to lay out the financial performance representations (FPR) of the franchise. It paints a picture of how potential franchisees can expect to perform and estimates how much money they could make should they join the franchise. Why is Item 19 Important? Item 19 is more than just a rundown of financial performance. It is a powerful tool that aids in decision making, builds trust between the franchisor and potential franchisee, and sets realistic expectations. Decision Making. A strong Item 19 helps franchisors attract and select the ideal franchisee candidates. It also ensures that a franchise brand is a solid investment, and helps the franchisee compare their options to determine if they are joining a successful business. Trust and Transparency. Item 19 signifies financial transparency and creates trust between the franchisor and potential franchisee. It shows that a franchisor knows their numbers, and has no issue disclosing them. The more information that can be provided on financial performance, the better. This transparency creates strong relationships between franchisors and their franchisees. Realistic Expectations. Item 19 allows the franchisor to set realistic expectations for financial performance. While a franchise may be profitable as a whole, individual success can vary. An Item 19 that contains data-backed projections of how much potential franchisees could realistically make provides the clarity they need to make an informed decision. How to Build a Strong Item 19 What do franchisors need to build a strong Item 19? Put simply, clear, accurate financials. The key elements that create a powerful Item 19 are: Average Gross Profit Average Gross Sales Cost breakdowns of goods and services Operating cost insights EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Industry-specific data points (number of customers served, number of services provided or products sold, etc.) These metrics provide financial insight into the franchise, clearly lay out the costs and obligations of a franchise purchase, and set realistic expectations for financial performance. The amount of information franchisors are able to share in Item 19 largely depends on the information their franchisees deliver. How can franchisees provide reliable, accurate information to their franchisors? It comes down to consistent monthly bookkeeping. The Necessary Resources Franchises have unique needs when it comes to bookkeeping and accounting, such as tracking royalties and advertising fees, and sometimes, multi-currency support. All of it needs to be properly recorded in accounting software so monthly reports can be produced. Franchisors need a team of trusted experts with knowledge of the franchise space, so they can receive accurate data from their franchisees. Consistent Monthly Bookkeeping. In order for franchisors to build a strong Item 19, they need up-to-date financial records for each franchise location. A bookkeeper can provide visibility into financial performance on the franchisee’s behalf, so franchisors have access to the information they need across all locations. An online bookkeeping service is particularly helpful in this situation. Instead of hiring multiple bookkeepers, the franchisor can rely on a single provider who delivers uniform services for each location – no matter where they are located. Accurate, Up-to-Date Reports. Accurate monthly reports are crucial to creating a solid Item 19, as all information is legally required to be accurate, truthful, and backed by numbers. A well-documented financial history showcases franchise growth and profitability and helps franchisors create a compelling Item 19. Expert Bookkeeping for Franchise Businesses xendoo Online Bookkeeping is a leading provider of online bookkeeping and accounting services for franchise businesses. Our franchise-focused team provides franchisors with timely report delivery and visibility into financial performance for each location. Are we a fit for your franchise? Let’s talk! Schedule your free consultation today.
Bookkeeping Services Rates: A Complete Guide
Keeping up with the books is more than mere paperwork. Maintaining clear financial records can keep your business running smoothly and efficiently, all while providing you with a clear picture of the health of your business. Chances are that your time is too valuable to spend clicking around in QuickBooks. But can you really afford the cost of modern bookkeeping services? Today, we’ll take a closer look at common bookkeeping services rates, so you can find the best fit for the needs of your business. How Bookkeeping Services Rates Are Calculated Small business bookkeeping costs can depend on the education and experience of your bookkeeper. The services of a bookkeeper cost between $18 to $23 per hour for an in-house bookkeeper, while the services of a CPA range from $40 to $60 per hour. The cost of online bookkeeping services tends to be cheaper overall, but the final price will be impacted by three critical factors: Complexity Bookkeeping costs usually reflect the amount of work involved. Basic bookkeeping services tend to be the simplest, and therefore, they might be the most cost-effective. More complex services, such as tax planning and catch-up services, will require additional time and attention. The more time spent, the more expensive these services tend to be. Advanced services such as tax planning and preparation also tend to be cyclical. You may find that you have a greater need for a CPA during particular seasons of the year, which can make it slightly more challenging to budget appropriately. Online bookkeeping services offer flat-rate packages, which means that you’ll be able to connect with a professional team that can provide these financial services with the utmost skill. You won’t have to worry about the complexity of the task or the time needed for completion. Instead, you can simply match the size of your business to the appropriate package, and your bookkeeping team will handle the rest. Services Bookkeeping and accounting costs are influenced by the type of service being performed. Online accounting firms can provide a full range of financial services, including: Bookkeeping Catch-up services Business tax preparation Tax filing Personal tax preparation The simplicity of basic bookkeeping makes it the most cost-effective option. But if you rely on an online accounting firm to assist with your tax documents, you can still save a considerable sum, since your bookkeeping team and CPA will be working hand in hand. Catch-up services will vary in cost. The exact price will depend on how many months you’re behind. But the true value of these services is the peace of mind that comes from knowing your books are up to date. Modern business owners may also have specialized needs that require the attention of an industry professional. eCommerce, for example, can represent a sizable portion of a company’s revenue. For this reason, ideally, you’ll want to partner with a professional who specializes in eCommerce accounting—but again, finding the right person can be costly! Outsourcing these services is often less expensive than relying on traditional, in-person employees. Online accounting costs can vary, but small business owners can often find flat rates and packages tailored to the size and needs of their small business. Even if you only need basic bookkeeping, a flat-rate approach can be much more affordable than hiring a traditional employee. If you want additional services (such as tax preparation), an online firm can easily provide supplemental services. The real value of online bookkeeping services, of course, is that small business owners get to spend less time on administrative tasks, devoting more time to the revenue-generating activities of their business. Partnering with an online firm can take basic financial tasks off your plate without expanding your workforce. Communication As a business owner, it’s important to have direct access to your financial data and your bookkeeping team at all times. The frequency and quality of your communication will have considerable bearing on your bookkeeping services rates. Unfortunately, in this department, you get what you pay for. Small business owners may feel frustrated after hiring an accounting firm if they find that their online team is hard to reach for questions or concerns. The best accounting firms will provide three important things. First, their online financial software will offer total transparency so that business owners have access to their business data anytime, anywhere. Secondly, an online financial team should be able to adapt to your communication style, whether that be a phone call, email, or a standing appointment for a teleconference call. Third, outsourced accounting firms will provide regular reports regarding your cash flow and the overall health of your business. The best firms will make these reports available on both mobile and desktop platforms, so you’ll never be out of the loop when it comes to the financial strength of your company. The Different xendoo Packages xendoo offers a total of five core packages, each of which depends on your company’s total revenue: Essentials ($395/mo): Bookkeeping for less than $50,000 in monthly expenses Growth ($695/mo): Bookkeeping for less than $75,000 in monthly expenses Scale ($995/mo): Bookkeeping for less than $125,000 in monthly expenses Discounted rates are also available for annual subscribers. Each package includes a dedicated team and monthly bookkeeping services, as well as the following features: Cash basis bookkeeping Modified accrual bookkeeping Xero accounting software Profit and loss statements Balance sheets Monthly trend graphs Mobile apps Standard chart of accounts Select plans also include services for tax consulting and filing. For more information about these plans, visit our pricing page. Flat-rate plans will be more cost-effective than hiring your own team. A bookkeeper will generally run about $25 per hour, depending on their skill level. If you hired a part-time employee to spend 20 hours a week handling your books, you’d be spending $500 per week! Even if you could cut this time in half, you’d be looking at $1000 a month in bookkeeping costs alone. Do you need advanced services, such as tax preparation and filing? Today, a typical
Celebrating Women’s Small Business Month: Thoughts from xendoo CEO and Founder, Lil Roberts
National Women’s Small Business Month celebrates women’s achievements in business, and highlights what they bring to their communities as small business owners. We took a moment to interview xendoo founder and CEO Lil Roberts, to get insight into what it takes to be a successful entrepreneur, and the importance of women leading in business. Build Up Your Team What encouragement do you have for women who are in male-dominated industries? Shift your mindset. Do not let who dominates the industry define your role within it. Succeeding in business is all about excelling at what you do best, and building up a team that compliments the areas that you lack experience in. A multifaceted team is what makes a business thrive. When your team is growing their skills and knowledge, when your customers are happy, that is where you will find true success in your business. It is crucial to focus on the problem that needs to be solved, and build a team that is as passionate about solving that problem as you are. That is what success looks like in every industry, no matter who it is dominated by. Inclusive by Nature What is the importance of women leading in business? Lil smiled and recalled a moment in which she had the opportunity to speak to Frances Frei, Senior Associate Dean for Executive Education at Harvard Business School. Frei shared her experience of solving problems with a team of women and immigrants, referencing studies that prove that when women lead, everyone wins. That is not to say that people and businesses cannot thrive under male leadership – they do. It simply highlights that women tend to be inclusive by nature, and adept at empowering those around them to do and be their best. This leads to the creation of supportive, passionate teams and therefore, successful businesses. Hats Off to You To all female business owners and entrepreneurs, we are rooting for you. Happy National Women’s Small Business Month from your friends at xendoo! Take time to celebrate your business and your amazing team this month. Focus on what you love – growing your business. xendoo has your online bookkeeping covered. Schedule a free consultation with one of our accountants. We would love to get to know you and your business, and partner with you as your bookkeeping, accounting, and tax team! Watch the full interview with Lil below: }
