1) Task or strategy:When outsourcing your finances, think about what you want them to do. Are they only taking mundane tasks from your business or do you want them to add strategic value. Some financial experts can offer business advice, like buy verse lease, or they can help integrate your business and personal financial plan. Decide ahead of time what value you want to receive from your financial services. 2) Technology:There are a lot of software options in the financial industry and most experts will have 1-2 favorite programs. Ask which programs they are comfortable with and if you have not used those programs before, make sure to analyze the software as much as the company. 3) How often:Many small businesses hire a bookkeeper to come to update their books 1-2x a month. This can be a great way to start and then add time as the business necessitates. 4) Office visits or remote:Many bookkeepers still drive to their client’s offices. While this may sound the most comfortable remember that you are paying for their travel time and expenses, whether directly or indirectly. You’ll also be paying for additional rent & utilities, and even desk and computers, for someone who will only be part time in your office. Why? With current technologies, all necessary information can be passed back and forth without driving to a client’s office. Before hiring a new accountant, talk through your current processes, and make sure you are comfortable with the exchange of data. 5) Personality:As with any consultant, you want to make sure you can communicate well with your financial services company. Whether it is an individual or a large corporation, use the selection process to evaluate how well they follow up, whether they ask enough questions before offering advice, and whether you are going to enjoy working with them. 6) Payroll services in house or outsource:It depends on the nature of your business, your in house software, and whether you have a bookkeeper with payroll experience. A payroll service helps calculate paychecks and taxes for each employee, prints and delivers paychecks, direct deposit, W-2s, 401k plans, and tracks employee benefits. The cost of outsourcing is nominal compared to the amount of work and problems payroll can cause. For 95% of our clients, we recommend outsourcing. 7) Quality:There is a HUGE difference between a cheap bookkeeper and a quality accountant / bookkeeper. AVOID cheap, hourly bookkeepers. There is a reason they are cheap. If they were good, wouldn’t they have more clients and be able to charge more? We receive so many clients who come to us after a bad experience with a cheap hourly bookkeeper. While it may sound like a great way to save money, it will only cost you more in the long term. You’ll pay your expensive CPA to fix and re-do their mess, you’ll have poor visibility to your books throughout the year, and you may even have liabilities to the IRS. 8) Security:Most banks offer online access to your accounts and QuickBooks (Intuit) has created relationships with most major banks that allows for electronic exchange of information. Feel comfortable with this technology. Your money and finances will be secure. These are not new technologies and the banks will protect your money. The advantages gained through these technologies are numerous and you’ll have a disadvantage in your market if you don’t take advantage of them. 9) Bill paying:Do you like to sign all of your checks? We usually recommend that you do. A good accountant should be able to write your checks for you to sign or set up a very easy system for you to write checks and have the information automatically captured, so they can easily enter it into your financials. 10) Reporting:A good bookkeeper / accountant should give you GREAT reports. Other than tax preparation, that’s the point of their job; to give you visibility into your company so you can make educated decisions. In fact, we believe a good bookkeeper / accountant should give you analysis or suggestions above and beyond the raw data. www.signatureanalytics.com
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