Does My Startup Need A Bookkeeper?

Does My Startup Need A Bookkeeper?

Does My Startup Need a Bookkeeper?

If you want to form a business, you need to ensure that you have a bookkeeper. A bookkeeper will ensure that everything is taken care of for your business. We will talk about some of the benefits of hiring a bookkeeper for your startup! 

PRO TIP: Read our great article and learn who to hire for startup services near me!

You Can Do What You Understand/Avoid What You Do not 

Many people who run a business have no idea how finances work. In fact, most of them have zero experience with finances and how businesses work. That is why you would hire a professional. 

Keep in mind that finances are not just the visible money. It includes payable accounts and receiving accounts as well. It will also include your taxes. If you do not understand how to effectively manage these accounts and taxes, hiring a bookkeeper will be essential. 

Plus, if you are doing the bookkeeping, you are not focusing on daily tasks that you should be as a business owner and manager.

startup bookkeeping Santa Monica
startup bookkeeping Santa Monica

PRO TIP: Read our post should I have an accountant if I have a startup? We know it will be helpful.

Here Are Benefits Of Hiring A Startup Bookkeeping Service Such As Startup Tandem

If you don’t already know- Startup Tandem offers a range of startup services for businesses at every stage of development. Our bookkeeping services for startups are perfect and are priced affordably too. In addition to this, we offer business accounting services, fractional CFO consulting, HR and tax services too.

Here are some of the reasons you shouldn’t write off the idea of hiring a bookkeeper just yet.

Focus on the Core Business Needs

As a founder, you are going to want to focus your attention on the idea of your business. This also means that you, the founder, should devote most of your time to funding, marketing, and strategic planning for your new business. 

Work/Life Balance 

Starting a business is a lot of work. It takes a lot of long hours and energy. This may mean that at the end of the day or week, you go home and go straight to bed. This often happens to those who do not hire people who help them. This can cause troubles at home if you are not careful. Hiring a bookkeeper will allow you to save time on that aspect of the business. 

Plus, if you do everything, you are going to burn yourself out eventually. This could cause many issues for your health and the life of your business. 

New Perspectives 

You may believe that you are ready to start and that your ideas are wonderful. While they are wonderful, someone else may have a better idea. When you have someone else investigate the business financials, they can help ensure that everything is proper. This includes all finances, reports, and funds. A good bookkeeper will allow you to see a bigger picture for your business. They can forecast future sales and income. 

In all reality, a bookkeeper is going to be good with finances. They will be able to look at your plans and see if there are errors. They will also tell you if there should be changes made to benefit your business. After crunching numbers, they may find a better solution or idea. 

Forget Tedious 

When you run a business, you are not thinking about writing checks or paying bills. This is not something that will excite many. However, a bookkeeper has signed up to do this job. This means that they may enjoy it and will do it accurately. Plus, they are going to get more done in a shorter time than you would because they like doing tedious tasks such as number crunching and payroll. 

On Time Payments 

When you run a business, it can be difficult to keep track of everything. This includes the bills. With a bookkeeper you can ensure that all bills are paid on time without having to worry. This will ensure that your credit is kept in good standings with the credit companies. 

Correct Taxes 

When you own a business, taxes must be correct and paid. If this does not happen, it could mean big trouble. This could even include legal troubles. Forgetting something or not knowing how to do your taxes could cause your business to go up in flames. Ensure that you are hiring an educated bookkeeper to help ensure that your taxes are filed correctly to avoid any unnecessary repercussions. 

Wrapping Up: Does My Startup Need A Bookkeeper? 

Taking the time to learn the many benefits of having a bookkeeper can be the difference between thriving and scraping by. Bookkeepers allow you to do your job without having to worry about the financial aspect of your business. As you can see above, a bookkeeper will be an essential part of your business. It will make you have a little bit more time at the end of the day and not feel so burned out. It will allow you to go to work without dreading the financials. A bookkeeper is essential to have. If you do not know where to go for your startup business, Startup Tandem can help you. Whether you need a bookkeeper or anything else for your new business, you are covered. You can contact us here to learn more about what we can offer your startup business.

You should now better understand the answer to the question: does my startup need a bookkeeper and we wish you all the best.

Who Is The Best Business Accountant In Santa Monica CA?

Who Is The Best Business Accountant In Santa Monica CA?

Who Is the Best Business Accountant in Santa Monica, CA 

Are you wondering who is the best business accountant in Santa Monica CA? When it comes to your business, you want nothing but the best. This includes your accounting department. It may mean the success or failure of your business. If you have a good bookkeeper, this will help ensure that your records are organized. However, you need to have an accountant to help you manage your business as well as grow your business. 

Who is the best business accountant in Santa Monica CA
Who is the best business accountant in Santa Monica CA

Most people assume that an accountant is just for tax purposes. However, they are for much more than that. While an accountant can help with your taxes and help with tax changes, they can offer so much more for your business. 

A Good Business Accountant Should Have These Things

A good accountant and startup bookkeeping service is going to help you make the best decisions for your business. They can help you determine if you should buy more space or expand. If you have plans in place, your accountant should be able to tell you how it will help your business or if it is a bad idea. They can help determine the growth of the business. If you do not have an accountant, it may be time to get one. Keep in mind that there are many things to look at before hiring a business accountant in Santa Monica. Let us talk about how you can find a good accountant for your business. 

Santa Monica CA Is Full Of Business Accounting Services

There is no shortage of business accountants in Santa Monica, CA. The reasons being is that the surrounding areas are full of successful entrepreneurs who do business in the area, nationally and internationally. Some of the most successful startups in the world are based out of Santa Monica and its neighbor Los Angeles. For this reason, if you want a truly professional and knowledgeable accounting service in Santa Monica, it won’t be hard to find one.

Accountants In Santa Monica Tend To Be Pricey!

The only problem many young startups face is that accounting services in Santa Monica, CA do tend to be a little more pricey. The reason is that the cost of living in this beautiful area is much higher. In addition, the average business revenue and median income is much higher in this part of the country. So the accounting services in Santa Monica are more expensive than other parts of the world.

However, there is a huge amount of benefit in hiring a Santa Monica accounting service. And here are a few of the reasons you should consider doing so.

Benefits Of Santa Monica Accounting Services For Startups And Business Owners

  • Informed on business trends and financial analysis
  • Highly educated accounting professionals
  • Trained at some of the best schools, Universities and training programs in the world
  • They work with some of the most successful companies in the world
  • Keen ability to identify ways your business can make more money and save on taxes

Some Accountants That Focus On Small Business Accounting Are Affordable

It’s worth mentioning that there is a category of Santa Monica accounting services that focus specifically on small business accounting. They are priced affordably and cater to entrepreneurs and early stage startups. One such company is one of our favorites: Startup Tandem. But more on Startup Tandem of Santa Monica in a minute!

Some Of The Best Business Accountants In Santa Monica 2022

We’ve gathered some of the best accounting services in Santa Monica CA below. We’ve also listed the benefits of working with them. In addition, and further on in the article, we will explain how you can locate an accountant or bookkeeping service that best meets your needs.

how to choose a small business accountant
how to choose a small business accountant

FIRST PLACE: STARTUP TANDEM

Startup Tandem of Santa Monica, CA takes first place as the best accounting service for businesses and startups in Santa Monica CA. Here are the reasons we chose Startup Tandem as the best Santa Monica business accountant.

  • They have fixed tiered pricing packages that are more affordable than other accounting services
  • Rated #1 by startups all over the USA
  • Extensive financial analysis and insight into your business that will lead to your business making more!
  • They offer CFO consulting services, bookkeeping and fractional CFOs too!

Startup Tandem’s Location In Santa Monica:

SECOND PLACE: SANTA MONICA BOOKKEEPING

We chose this company because of their excellent ratings and what they also do for businesses in terms of accounting services. When you look for a Santa Monica accountant, it’s important you seek out one with the speciality you need. You don’t want a company that deals mainly with employees. Santa Monica bookkeeping is also a great choice.

THIRD PLACE: SM FINANCIAL SERVICES

SM Financial Services is also a great choice. So let’s now move on below and discuss how you can go about finding the best accountant for your needs.

Finding The Best Startup Or Small Business Accounting Services Near Santa Monica California

STEP 1: Look At Referrals

You want to look at people who have used accountants before. These people can help guide you to the perfect accountant. People are not going to recommend people who have not done an excellent job. You can talk to these people and determine how they liked working with so and so accounting. If you are unable to use this method to find an accountant, you can rely on other methods. 

If you cannot find a good accountant through family and friends, you can look online. You can look up different accountants in your area. Make sure that the accountant has experience in your field of work. You want them to understand what they are looking at. 

STEP 2: Call Around

When you call an accounting firm, you want to answer and sound professional. When calling, ask for the person or accountant that is familiar with the business you run. There may be more than one. You can use this list to help determine which accountant is better for you. 

Once you have found a few accountants to call, you want to call. When they answer, you want to ask some questions. One of the first things you should ask about is the education that they have received. A good accountant will have no problem showing you their proof of education. In fact, most of them should be proud to show you, their education! 

Another thing that you should take into consideration is their experience. If they do not have much experience in the industry, it may be best to go to another accountant. If you are not sure about someone, you can look at their professional association. This will have all the qualifications they have and if they are valid. You will also see if there are any disciplinary issues with this accountant. 

You will want to use this first interaction to make your small list of possible accountants. You should have two or three to choose from at this time. This will make your life much easier. 

should every startup invest in financial services?
should every startup invest in financial services?

STEP 3: Make Sure You Ask Questions 

You want to make sure that you are asking about billing. Billing rates is something that should be discussed before anything else comes up. If you are excited about the services at first but then you find out you cannot afford them, it may not make you feel too great. Ensure that you are asking the billing rate before starting. 

You also want to ask about their policies. Different accountants will have different policies. This includes how they prefer to be contacted. Some accountants prefer phone calls while others will prefer and respond faster to an email. You want an accountant that you can get ahold of if you need to. You do not want to have to wait days for a return email or phone call. 

Ask how much your accountant charges for doing basic tax returns for a business. You may decide to bring in a copy of the previous tax year. This will help an attorney give you a rough estimate. It will allow them to look at the numbers to determine what the possible outcome next year will be. 

Here is a list of questions to ask your accountant so you don’t forget:

  • How do you bill?
  • How much can you save me on my taxes?
  • Do you specialize in business accounting?
  • When will I file?
  • Will you be able to advise me on what type of business entity I need?
  • How much growth do you expect I will see if I choose you?

STEP 4: Inquire About His Or Her Experience

Lastly, you want to ensure that the accountant is familiar with your business. Sometimes a business will require special things. You need to make sure that the accountant has experience with your field of work. Here are a few examples. 

  1. You want to find an ecommerce accountant if you have a business related to the internet. 
  2. You need someone who knows international taxes if your business does trade or work in other countries. 
  3. If your business wants to export, ask the accountant how they may help you. They will often help create an export strategy based on your business’ numbers. 
  4. Consultations 

STEP 5: Meet The Accountant

In order to discover who is the best business accountant in Santa Monica CA, you will need to meet him or her either through a zoom meeting virtually or in person. Meeting the potential accountant is going to be your last step before hiring someone. This is where you will want to pay close attention. You can determine if you are comfortable with this accountant or if they are not the best fit for you. 

You will also see how well the accountant communicates. An experienced accountant should be able to help you with any questions you may have. If they do not know the answer, they will do their best to look and answer it for you. After all, you need to ensure that this can be a long-term relationship. You do not want to have different accountants coming in and out of your business. This can lead to a mess and possibly a business that is losing money. 

Keep in mind that an accountant is not just for preparing your taxes. An accountant can potentially build a blueprint that will save your business. A blueprint can be the future of your business. This could be a new building, finances, and many more blueprints. 

Do I Need an Accountant for my Business? 

You may tell yourself that you do not need an accountant for your business. You may say that you do not need it and that your current system or app is doing just fine. We know that when you are running a business, you are going to only spend the money that is necessary for the business. Hiring an accountant will add to your business. 

You will find after hiring an accountant that it is essential for a business. It is definitely worth the cost. In fact, a business can save thousands a year with an accountant. This means that you are saving money in the business that can be used somewhere else if needed. 

Please read some of these important blog posts to help you navigate choosing an accounting service

Knowing When You Need an Accountant 

The biggest thing about hiring an accountant is hiring one when you need them. Half of the work is determining if you need an accountant for your business or not. Here are a few reasons or situations where a business may hire an accountant. 

Signs You Need To Hire An Accounting Service

Just Starting a Business/Do Not Know About Accounting 

If you are just starting your business, it may seem like a field of weeds. You do not know which way to turn. This is where an accountant may come into play. If you are confused with financial documents, it is impossible to create reports for your business. You may not understand accounting terms either. If this is the case, you should ensure that you are hiring the best business accountant ever. 

When you are hiring an accountant; they can help you create a strategy to ensure that your business is stable financially. An accountant can help teach you and help you plan to manage your finances. Having an accountant early on in the startup of your business will be greatly beneficial. After all, it is the early slips that can cause a major problem down the road. 

If you find yourself struggling with the basics of accounting, you should look into the tips above to hire the perfect accountant for your business. 

The Company’s Legal Structure 

You will notice that there are a few separate ways that you can structure a business. There is sole proprietorship, corporation, LLC, and partnership. This choice for your business will impact your financial state. This structure should be considered. It should not be overlooked. 

Let us take a look at an example. If you choose to be a sole proprietor, you will find yourself working self-employed. You will have invoices under your name. This may allow you to save on taxes by allowing you to deduct living expenses. 

Keep in mind that each structure is different. Each legal structure will have its own unique problems. While you may not know much about this topic, an educated accountant will. They can help explain the structures and help ensure that you are picking the right one for your business. Picking the right legal structure is essential. You need to determine what works best for you in that situation. 

You Struggle with Taxes

If you own a business, you likely do not have time to do your own taxes. That is one option. The other is that you do not know how to do taxes and do not want to mess up taxes for your business as it could cause trouble. This is when you should take the time to hire an experienced accountant. 

An accountant will ensure that you are paying the right amount for taxes. They will ensure that you are properly filing your taxes so that you are not hit with an audit or even fines. If you do not file taxes properly for your business or overall, you can face penalties and fines. 

 Most people will hire an accountant for their business just for tax season. They are the most valuable during this time because business owners do not have time to do their taxes and they likely do not know how to properly file and prepare taxes. An accountant will look over the credits and deductions that are possible. Remember, crunching numbers is not always the best way to save money. However, this is the job of an accountant. They will ensure that you are saving money on your taxes. An accountant can help save hundreds of dollars, if not more, every year.

The Business Is Growing Rapidly

If your business is expanding rapidly, you are bringing more money into the business. You may not know how to manage this growth that is occurring. This is where an accountant will come into play. After all, you may need more employees, vendors, and more. An accountant will ensure that the cash flow in and out of the business is documented and taken care of properly. 

While your business is bringing in more money, managing it poorly can result in loss. Many businesses will see that when they start to bring in more money, they do not know how to effectively manage it. This could result in losses to the business. An accountant will ensure that the money is going where it needs to. This will ensure that you are profiting and not struggling. Plus, when you are bringing in more money, you need to look at what is bringing in money. 

An accountant can help you determine what can be ordered more and what could be ordered less. The items that are hot and selling are the items you want to ensure are in stock. An accountant can help ensure that you are on the right track to help this growth happen. Without the right strategy, a growing business can fail. 

The IRS Is Here 

While many businesses, especially small businesses, do not receive an audit, it could happen. If you are facing an audit, you will need an accountant. They will help ensure that all your finances and taxes are in order. This will make the audit go smoothly without any issues. If there are issues, an accountant can help ensure you are addressing them properly. 

Keep in mind, having an accountant before you become audited is the best idea. That way you know that everything is responsibly managed, and you have nothing to worry about. Waiting until the IRS is at your business door before hiring an accountant may not be as beneficial. However, they will still be able to ensure that you are set for your audit. It is usually at these times that businesses will hire an accountant to keep on their records. 

Business Loans 

If you want to get a business loan, you can do this yourself. However, it may help to have an accountant by your side. The accountant can assist you during the application process. Keep in mind that if you are a small business, you will need to ensure that you have all financial documents present. An accountant can ensure these documents are accurate and available. 

Plus, when you have an accountant with you when applying for a loan, it looks better. It will show the lender that you are serious about your business and that you are going to make it work. It will allow you to better answer questions that the lender may have. Plus, an accountant can help determine if the rates on the loan are worth it or not. 

If you are not great with numbers, or do not understand how financials work, you will want an accountant. They will advise you about interest rates and other terms or conditions that are within this loan. An accountant will ensure that you are not getting into a loan that is not the best option for you. 

Buy/Sell Business

So you are wondering who is the best business accountant in Santa Monica CA? We’re getting to that right now!

The financial planning that is required to start a business is a lot. It is a huge deal. It may be overwhelming at first. That is why you should hire an accountant. They can help ensure that there are no red flags when you are buying a business. They will help you determine if the purchase is going to be worth it financially. They can also determine if there will be debt associated with the purchase. 

When selling a business, you will need to ensure your financial records are accurate. That is why hiring an accountant while you are in business is important. Without accurate reports, nothing will be as it seems. In fact, without accurate reports you may have no choice but to sell your business. 

Wrapping Up: Who Is The Best Business Accountant In Santa Monica CA

You are now aware of how to find a good accountant and why you may need one for your business. We have done some research and found that Startup Tandem is going to be your best option for a business accountant. With experience in every step of the process and highly trained professionals, you will have nothing to worry about, at least with financial situations. 

You should now have a better understanding of who is the best business accountant in Santa Monica CA!

Who Are The Best Startup Accountants In The Los Angeles Area?

Who Are The Best Startup Accountants In The Los Angeles Area?

Who Are the Best Startup Accountants in the Los Angeles Area?

You may be wondering – who are the best startup accountants in the Los Angeles area. This is a question we hear very frequently from businesses looking to hire a professional business accounting service in LA.

Before we talk about the best startup accountants, we are going to take a look at what startup accounting is and what you can expect from it. We will also talk about who is the best in the Los Angeles area so that you can feel comfortable picking the best startup accountant in the area. 

PRO TIP: Learn more about who to hire for startup services here!

Why Do I Need an Accountant? 

While you may be able to get by without an accountant or without any type of startup bookkeeping service, it would sure help to have one. Usually, a bookkeeper will have records of everything. This includes functions, payments, and invoices. This position will usually be part-time. However, adding an accountant can help encourage your business. If your business grows, you will need to have someone who can accurately manage everything that comes with a business. If you are going to raise your capital, you are going to need some help. Here are a few reasons why you should pick Startup Tandem. 

PRO TIP: If you choose to hire Startup Tandem, they also offer Fractional CFOs and HR consulting too!

how much does a CPA cost?
how much does a CPA cost?

Some Great Reasons Your Startup In LA Needs An Accountant

Taxes 

When you do your taxes, you will look at other items compared to regular tax returns. You will want to look at any credits available. Keep in mind that the International Revenue Service has increased the documents needed to achieve certain credits. Having an accountant will help you better understand these credits and how to obtain them to help you save money. 

PRO TIP: Read this post do I need a bookkeeper if I have quickbooks!

Organization

Your number system may be a complete mess. However, an accountant can come in and help you create a system where everything is organized. They can help you put documents in proper placement and create a system for your business that will allow you to keep track of financials. 

Compliance

You need to have an accountant to help you determine if you are following the rules for taxes or not. They are able to help you budget for items needed and find the best deals with tax breaks. A startup accountant will help ensure that you are set to go before the company takes off. 

Modeling 

Your startup accountant will help you create models. They can help determine your rate in which money is spent and earned. This is critical to know when you are first starting a business. That is why it is essential to have the right person doing the job. 

Your accountant will help you forecast what will be made and what needs to be made in order to keep the business floating. There may be several different charts with numbers that an accountant may help you with. 

PRO TIP: Learn how to find the best CFO consulting firm in Los Angeles in our recent blog post.

Budgeting 

When you have a business that is just starting out, you will not have funds to go crazy. You will have enough funds to get going and make some money. However, you need to be aware of where that money is going. This is why an accountant may be helpful. They can help you determine how much should go where. This will allow you to have the biggest return rate. 

Why Do I Need a Startup Accountant for my Business?

If you have someone helping you forecast, budget, and do all the other items in this article, then you will not have to worry for quite some time. The accountants will help you learn how to properly run your business from a financial point of view. They are there to help your business thrive and achieve your goals. 

Your business can become remarkably successful if the financial department flourishes. If your company has the power to push products and you have a startup accountant on your side, you are going to fly. A startup accountant will allow you to do everything that you have dreamed of for so long. Your business will now be a dream come true. 

Wrapping Up: Who Are The Best Startup Accountants In The Los Angeles Area?

Startup accountants are going to be greatly beneficial to any business. Whether you are just starting out or experiencing some problems with your financial system, you can count on us to help you get back in order. Here at Startup Tandem, you will have the best on your side so that you can bring in the money to take care of your family. Plus, having a good and functionable financial system will make the company much stronger. This may allow for pay raises or additional employees be added. 

Startup Tandem Is The Best Startup Accountant In The Los Angeles Area!

Startup Tandem is the best startup accountant in the Los Angeles area! We offer a variety of accounting services to startups in Los Angeles and beyond! We also offer a variety of other services too!

You should now have a better idea of who are the best startup accountants in the Los Angeles area and we wish you all the best!

Do I Need A Bookkeeper If I Have Quickbooks

Do I Need A Bookkeeper If I Have Quickbooks

If You’re Wondering Do I Need A Bookkeeper If I Have Quickbooks – Please Read!

You may be asking yourself- do I need a bookkeeper if I have quickbooks. This post will go into everything and answer your question of whether or not you need a bookkeeper if you have bookkeeping software (like Quickbooks) that you manage on your own.

Why Every Startup Should Have a Bookkeeper(Even if You Have Quickbooks)

Are you only using Quickbooks to keep track of your cash flow for your business? Think you don’t need the help of a startup bookkeeper or business accounting service? Think again! 

This post will explain to you why you need a bookkeeper and accounting team for your startup even if you have quickbooks. Read on below why you should invest in bookkeeping services for your new business!

What is Quickbooks?

Developed by the popular financial software  company Inuit, Quickbooks is an accounting software package designed for small businesses in mind. This software can help business owners who have no experience in accounting or bookkeeping, and who need professional assistance in categorizing expenses, payroll functions, paying bills, and managing payments. Quickbooks is a highly automated software built for an introduction into the world of financial management for business owners. 

An entry level step into accounting and bookkeeping, Quickbooks can be a useful tool for business owners but is no good on its own. Quickbooks works best when paired with a bookkeeper who can help guide and explain things to you. Below are several disadvantages of using solely Quickbooks as your only source of financial tracking within your business. 

PRO TIP: You may want to check out this article: how to find the best CFO consulting firm in Los Angeles. It will be very informative!

how to choose a small business accounting service
how to choose a small business accounting service

Disadvantages of Quickbooks

Quickbooks is an entry level solution for small to medium sized business owners who have little to no idea what they are doing. However, if you are looking for a personalized option to scale your business even further, using only Quickbooks is probably not the best plan for you. There are advantages to Quickbooks: it’s an affordable option and easy to use. If you are looking for the best financial decision for your business, however, you will need a bookkeeper too. When used alone as a primary way to organize and track your financial data, Quickbooks has some disadvantages. These may include:

  • Limited business features which do include functions such as  HR management, lot tracking, barcode scanning, and eCommerce.
  • Pricey options for add-ons which can dramatically increase the cost of Quickbooks by up to six times the amount of the basic plan. Some of these expensive add ons include features like automated data backups, multiple users, management charts, customized reporting, and automated approvals. 
  • Random site crashes and sometimes sluggish site due to a limited number of users and file sizes that are admitted on the site. This can be a huge problem for you and your business, especially if you are working on a large and important transaction. 
  • No backup or cloud to recover from mistakes which is a necessity these days in the world of technology. Did you accidentally enter data in the incorrect account? Imported multiple transactions to the wrong place? If using Quickbooks, mistakes big and small are permanent and not retractable. 
  • Customer service which guides users to online forums to help answer concerns or questions instead of customer service specialists. Quickbooks prefers users to find answers from other users instead of assisting directly. 
  • Easily manipulated data which, while made easier for you to fix errors and mistakes, makes it even simpler for someone with malicious intention to ruin your precious data. 

The above disadvantages can be solved with the help of a professionally trained bookkeeper who can keep track of all your financial expenses and can even help manage your Quickbooks account. Using both a bookkeeper and the Quickbooks software can put you at an advantage over other business owners who lose money through poor financial tracking. 

What is Bookkeeping? 

If you have a business and are looking to increase revenue or simply maintain it, a bookkeeper or bookkeeping service near you is a highly recommended option to keep track of cash flow and expenses. Companies such as Startup Tandem offer a range of financial and accounting services, in addition to Fractional CFOs to help with day to day analysis, reporting and organization. Learn more about our fractional CFOs in Los Angeles or give us a call.

Bookkeeping keeps a record of all financial transactions within your business. Additionally, proper bookkeeping is required to be able to correctly file your taxes each year. Filing your taxes as a business owner is not a matter to take lightly. 

Bookkeeping is not to be confused with accounting, which uses the information bookkeepers give to determine a business owner’s financial state and can help with tax returns, independent audits, and certified financial statements. 

In comparison, bookkeepers manage your financial data and record financial information. This information is crucial as it is a big part of being aware of your transactions, cash flow, and additional financial matters which are a major part of your business. 

Pro Tip: Read our article to learn how to choose a small business accountant!

Why Do I Need a Bookkeeper if I Have Quickbooks?

The answer is simple, and it depends on if you are willing to take the risk of losing money for your business every year. While Quickbooks can be a beginner-friendly way to dip your toes into the world of accounting for your business, it is not the wisest financial decision when used alone and without guidance. 

Quickbooks relies on its users to never make mistakes, and this is where a hired bookkeeper can come in handy. Most business owners are not built in bookkeepers and are not aware of the many rules surrounding every entry made. There is rarely a straightforward answer when working as a bookkeeper. That is why it is so much more efficient to work with someone who is trained and can help you jump through all the hoops. Reasons you should hire a bookkeeper even if you have Quickbooks:

  • Bookkeepers Increase Financial Accuracy in Your Business
  • Quickbooks Does Not Catch Errors That Bookkeepers Can
  • Bookkeepers Save Wasted Time That Could Be Used For Your Business
  • There Is Lower Risk Involved in Hiring a Bookkeeper vs. Relying on Quickbooks or Employees
  • Financial Reports Are More Easily Understood and Presented 
  • Filing Taxes is Easier

Bookkeepers Increase Financial Accuracy In Your Business

While technology is an amazing tool that is helpful for businesses in many ways, it is not always the most accurate. This is especially true for working with your financial transactions and recordkeeping online. Quickbooks doesn’t see your business from the inside out; it is online aware of what you are inputting. Working with a bookkeeper gives you an advantage of ensuring your entries are correct and accurate. Without accurate tracking, you could be seriously risking expensive fines and penalties with your tax return. 

The last thing you want to be doing is struggling during tax season. Not only does having a bookkeeper help you become more organized as a business, but it also helps you have less stress surrounding your finances, too!

Quickbooks Does Not Catch Errors That Bookkeepers Can

Quickbook does not have the ability to detect any errors or mistakes you may have accidentally made. This is where your bookkeeper can really make a difference in your business. Imagine listing an entry incorrectly and having to deal with the consequences down the road. No one wants to find out they owe more than they do be fined ridiculous amounts of money. 

Use Quickbooks and also have a bookkeeper on hand to look through your accounts and entries. Your bookkeeper can monitor your accounts and ensure that all entries and transactions are accurately made. 

Bookkeepers Save Wasted Time That Could Be Used For Your Business

You own a business and strive to make it a success. Why spend hours record keeping and financial planning when you could be spending your time and energy on your business? Time is more valuable than money and you could be using the time focused on bookkeeping to grow and scale your business instead.

Spend more time doing what you enjoy, and less time stressing about the record keeping portion of your business. 

Do I need a bookkeeper if I have quickbooks?
financial and accounting services

There is Lower Risk Involved in Hiring a Bookkeeper vs. Relying on Quickbooks or Employees

Have you thought about using one of your employees to manage bookkeeping? Not a good idea, as it is much more likely for a signed on employee to commit fraudulent activity than a bookkeeper within a company. Hiring someone from the outside who has been screened by their company is a much lower risk than hiring from within. 

If in the unfortunate event that a bookkeeper does commit fraud, there is a company behind them that is able to retain the losses and compensate you accordingly. 

Financial Reports Are More Easily Understood and Presented 

While Quickbooks has a great feature which organizes and presents your data, most business owners don’t know what to do with the data that is shown. What does it mean for their company? How should they use this information? An understanding of all of the data and how it is shown in the presentation is necessary for reading the report accurately and successfully. Bookkeepers are much more helpful in this regard as they can read the report with accuracy and present it in a way that not only makes sense to you, but to potential investors and shareholders as well. 

Filing Taxes is Easier

As stated earlier, taxes are an integral part of your business and are a major aspect of your business. If filed incorrectly, there are costly penalties and fines that can set your business back. 

Quickbooks works alongside TurboTax to file your taxes, which can make it easier to file your taxes as a business owner. However, if you want peace of mind, hire a bookkeeper to keep all of your finances in line. The more complicated your tax information is, the higher chance of errors during tax season. A financial expert such as a bookkeeper keeps things running smoothly for you. An automated software like Quickbooks can never compare to someone professionally trained with the books. 

Quickbooks vs. a Bookkeeper

Quickbooks can do the basics for your business but at times when used alone is not user friendly. With Quickbooks you can:

  • Store and analyze data
  • Pay invoices
  • Generate reports
  • Prepare taxes
  • Keep track of recordkeeping
  • Use double entry accounting feature

This is all great information to have, but with Quickbooks, it is just that; information. There is no one to guide you through the process or explain to you what your reports mean or how you should enter your business expenses. With the help of a bookkeeper you can have access to all of the information above, but with the added assistance of having someone give you financial advice and explain what is going on with your finances. 

Bookkeepers are capable of everything that Quickbooks does and more. Not only can they accomplish all that is listed above, there is the personalized component that Quickbooks does not have available for business owners. Your personal bookkeeper knows the ins and outs of your business, what goals you have, all of your expenses, personal and professional. They are aware of all financial transactions occurring and the cash flow within your business. With Quickbooks, the software relies on you to do a decent job of acting as bookkeeping without the training. 

At first, Quickbooks alone might seem attractive to the small business owner with its affordable prices. However, sooner rather than later the features that Quickbooks has as add-ons will add to your expenses and dramatically increase what you pay monthly. Why only choose an automated software such as Quickbooks when you could also use the help of a professional with years of experience?

PRO TIP: Read our article to learn how much does a CPA cost!

Why You Need a Bookkeeper Even if You Have Quickbooks!

It may be tempting as a small business owner to DIY it all and avoid paying for a bookkeeper. However, only using Quickbooks can actually put you and your business at more of a financial strain. With expensive add-on features that can multiply the cost of their software up to six times as much, using only Quickbooks would do more harm than good for your business. Instead, limit your use of Quickbooks and use a bookkeeper to keep track of everything going on within the walls of your growing business. 

Technology is evolving which can be fantastic for new business owners. However, why only choose software over a trained bookkeeper when it comes to the biggest part of your business: finances! Allow a trained professional to take over your transactions to let you focus on your business instead. It is my hope this post convinced you on why you need a bookkeeper even if you have Quickbooks!

Hire Startup Tandem For Accounting And Bookkeeping Services

Hire Startup Tandem for your accounting and bookkeeping services we have locations in LA and Delaware. Please take a look at our locations below and contact us if you have questions on our services!

How Much Does A CPA Cost?

How Much Does A CPA Cost?

How Much Does a CPA Cost?

For creative entrepreneurs and business starters, one of the things you’ll probably be wondering is, how much does a CPA cost? The finances of a new business can be quite challenging and confusing, especially without a background in accounting. With that, you’re likely to turn to a financial professional to help.

One of those key financial professionals for your new business, is a CPA, a Certified Public Accountant. With a CPA at your side, the difficult and confusing elements of tax, reviews, and more can be handled professionally. A CPA can deal with your bookkeeping and accounting management too. So, let’s go over a few questions first;

PRO TIP: Read this article on trade spend strategies for effective promotion management! We know it will be helpful.

What is a CPA?

A CPA is not a title for a business like a CFO (Chief Financial Officer) but rather is a Certified Public Account. A Certified Public Accountant is an earned certification that demonstrates an accountant’s knowledge in the field of taxes, audits, business analysis, and compliance.

These certifications are earned through business courses that take several years to complete. After those courses, a CPA is required to take a nearly four-hour exam in order to attain the title of Certified Public Accountant. Once that title is attained through passing that exam, a CPA still has to keep an up-to-date knowledge of the yearly business taxation and regulation, along with much more.

When this certification is earned, it shows a knowledge of all major elements of accounting. Not only that, but it shows that the accountant has the highest ethical and professional standards. As a result, most businesses look for CPAs specifically when they’re trying to find an accountant or accounting and bookkeeping services for their business.

What Does a CPA Do For a Small Business?

So after all of that, you might be wondering what a CPA does, especially for a small business. The role of a Certified Public Accountant can vary from state to state, and business to business, depending on your financial needs, but there’s no shortage of tasks that they can accomplish;

  • Planning For Taxes
    • CPAs have an advanced knowledge of taxes on both a state and federal level for planning and filing.
    • Tax returns, such as payroll returns, income returns, and sales and use returns are important topics for CPAs. Their annual training requires them to keep up-to-date on the changes to tax return laws.
    • While it can vary from situation to situation, the National Society of Accountants reports that it will generally cost $154 an hour to hire a CPA for their tax service.
  • Advisory and Consultation
  • From business to government, people will go to Certified Public Accountants for their advice in all areas of accounting, be it increasing profit and revenue, or finding funds.
  • Certified accountants are also brought in to help investigate or dispute litigations. These specific issues, forensic accounting such as this can cost anywhere from $300 to $500 per hour.
  • Some firms will offer consultation along with traditional accounting services as a unit. Outside of that, however, it can cost an average of $158 per hour, according to the National Society of Accounting.

While these are the main functions of a CPA, there are many other things that a CPA is capable of depending on the firm and accountant. There are some firms and accountants that offer technological consults and software, estate planning, and more. Many offer bookkeeping and accounting management too. All of this can vary from firm to firm, so be informed before making any decisions.

Is a CPA Worth It For You?

For a small business, or an entrepreneur looking to start their business and maximize cash flow, you’re probably asking yourself if a CPA is worth the asking price. While there might be a more upfront cost to a good CPA, it can save you money down the line. They can show tax-credit opportunities, prepare you for growth, and organize financial statements, which are key if you plan on taking on investors and loans.

A CPA is worth it for you if you’re in any of these situations;

  • Your business has a more complicated tax situation;
    • If you do or plan to take business tax credits, such as the Alternative Fuel Vehicle Refueling Property Credit or the New Market Credit, or any number of other Tax Credits you may need a CPA to help properly file these with the IRS
  • Your goal is to take your company public;
    • As mentioned, if you want to take your company public, you’ll need your financial statements in order for investors and legislators to look over.
    • There’s also a set of rules in the United States, such as the GAAP, that CPAs are educated on, that you’ll need to abide by if you take your company public.
    • A CPA can also prepare for all of the requirements for an IPO, an Initial Public Offering for public companies.
  • You are in need of in-depth advice;
  • If you’re having trouble with a government body, specifically the IRS, a CPA, tax attorney, or an enrolled agent are the only people that can represent you in that instance.
  • In situations where you’re in an unknown or confusing financial situation, CPAs offer advisory and consultation to help you.

The Quality of a Good CPA Vs. The Cost

From all of that, it’s easy to see the benefits of having a good CPA. Now, if your business is a more straightforward transactional small business, you might be better served by an accounting software. If you’re in the situations that have been discussed, or you’re looking to establish an early and productive relationship with a Certified Accountant for proactive advice and planning, it might be best to start looking for a CPA. With all of that information, hopefully, you don’t need to wonder; what does a CPA cost?

Conclusion: How Much Does A CPA Cost?

The bottom line is that the upfront cost of a CPA is well worth it in the long run with the amount of money they will save for you.  Companies such as Startup Tandem offer a variety of financial services that can make the cost of hiring them well worth it for you as you improve cash flow and save money.  You can take a look at some of their services here or reach out to them for a free introductory call. Startup Tandem is your go to financial consultant for your startup! They offer a variety of financial and CFO consulting services.

We hope you now understand exactly how much does a CPA cost and we wish you all the best.

Which Startups Are Most Profitable?

Which Startups Are Most Profitable?

Which Startups Are Most Profitable? 

You may be sitting there, wondering, which startups are the most profitable? If you are thinking of quitting your job and starting a business, it’s important to read this post in advance of doing so.  Here we are going to discuss some of the most profitable startups that have been popping up on the radar. We are excited to share this information with you! Let us get started! 

What is a Startup?

Many people are unsure as to what a startup is. A startup is going to be any business that is opened under a small business. This startup is going to be what makes or breaks your business. We are going to discuss which small business startups are going to be best for those looking to start a small business. 

Taking the time to look at what is trending right now will help you determine what field you want to go into and if you are going to make money. Keep in mind that there are more than what is on this list. Just because it is not on this list, does not mean that your business will not make it. This list is going to show which startup areas are the most profitable at the current moment. 

What Businesses Are The Most Profitable?

Accounting/Tax

If you are looking for a profitable startup, accounting services and tax services are rising. Any type of financial management service is extremely lucrative. However the industry is very competitive and many companies just don’t do it right. 

Companies such as Startup Tandem offer financial management services and are very well respected in the financial sector.  If you need a financial management service, Startup Tandem should be your first choice.

People are always asking for help legally and with their taxes. If you are a small business or are looking to start one, this is the number one industry that small business see profit from. 

The reason that this is always at the top of the list is because no matter what happens to the economy, people are going to still need help with their taxes. People are still going to need someone to help them keep their items in order.which startups and businesses are most profitable

which startups are most profitable

Brokers/Agents 

A lot of people have been finding out that going into real estate has a large benefit for them. This is the third most profitable area for smaller businesses. They have an average profit margin of over fifteen percent. 

All you need to get into the industry is a broker license and some simple cards with your business information on it. However, this is always going to fluctuate depending on what the economy is at the time. 

Rental Business

Many people are finding out that dealing with rentals is going to bring in a lot of profit. In this instance, we are talking about renting and leasing vehicles. We do know that the auto industry is not a very profitable industry, however, rentals and leasing are a different story. The average profit is almost fifteen percent.

PRO TIP: Read more about what you need to start a business here. We know you’ll love this post!

Land Rental/Property Rental 

When you are a small business, you may find that you are left with rental properties. These are on the list because on average people are going to make fourteen percent net profit. 

The biggest thing to consider is that you will have a setup cost. This is any of the expenses that it cost to upgrade or renovate the home. These are all things that need to be done to a unit to ensure that it is livable for the renter. 

Once a property owner has gotten their original money put into the house back, they will start earning net income. This income is going to be extra money once the original amount is paid off. 

Keep in mind that running any rental can be difficult. It may not be for everyone. 

Dental 

You may not realize it, but dental workers are going to make a lot of money. This is especially true if it is a small business owner. On average they make fourteen percent net profit. This is going to come from those who repeat their business there. 

When there is a small company such as a dentist, you are going to want to ensure that the person comes back. This will help you keep money walking in the door. Plus, creating a nice clientele is going to ensure that people are happy and so are you. If the client is happy and taken care of, so will your wallet.what type of business should I start?

what type of business to start

Retaining Clients 

When you are a small business owner, you are going to want to ensure that your clients come back. Having a reliable clientele is going to be better than having a million customers. You want people who are going to always be faithful to you. This will ensure your profits.

CONCLUSION: What Type Of Startup Is Most Profitable?

Taking the time to determine what is bringing in money now and what you want to do is important. You need to understand how to keep clients happy and coming back. This is what is going to help a small business startup the most. Once you have your startup, you now are ready to make money. Keep in mind that you now know which startups are the most profitable and can determine which route you want to go.