If you have a business with money flowing in and out you need some way of keeping track of everything. Accurate bookkeeping becomes crucial not only to track activity, but to gain a holistic view of your financial situation, and enable better planning and management in the long run. Traditional bookkeeping services may offer a standardized approach; whereas personalized bookkeeping provides a more tailored, targeted service that can help you make business-specific decisions. Here we will explore the ins and outs of personalized bookkeeping vs old-school methods, and help you decide if this is the route to take with your business venture.
What is personalized bookkeeping?
Personalized bookkeeping is a type of bookkeeping service that is tailored to the specific needs and requirements of an individual or business. Unlike traditional bookkeeping services, which may offer a one-size-fits-all approach, personalized bookkeeping considers the unique financial situation and goals of your specific situation.
How does personalized bookkeeping work?
Personalized bookkeeping typically involves an initial consultation to determine the client's specific financial needs and goals. From there, the bookkeeper or firm will create a customized plan that outlines the specific services they will provide, based on your individual needs as discussed. These services may include financial statement preparation, accounts payable and receivables, bank reconciliations, payroll processing, tax preparation and more. Your bookkeeper or accounting firm will work closely with you to ensure that goals and expectations are met.
Personalized bookkeeping vs traditional methods
Personalized bookkeeping, also known as cloud-based or digital bookkeeping is an advanced method of bookkeeping that has become increasingly popular, especially since the lockdown imposed a move to online or hybrid work. Unlike traditional bookkeeping methods, which rely on paper records and manual data entry, personalized bookkeeping utilizes digital tools and software to automate and streamline the bookkeeping process.
Here are some of the benefits of using personalized or cloud-based bookkeeping over traditional bookkeeping methods:
- Time Savings: Personalized bookkeeping saves time by automating repetitive tasks.
- Improved Accuracy: Personalized bookkeeping automates data entry, reconciling bank statements, and generating financial reports.
- Better Financial Control: Personalized bookkeeping provides better financial control by giving management real-time access to their financial information.
- Scalability: Personalized bookkeeping is scalable, which means that it adapts to the changing needs of a business.
- Cost Savings: This form of bookkeeping can save on overheads by reducing the need for manual data entry, paper records, and physical storage space.
- Improved Accessibility: Personalized bookkeeping allows businesses to access their financial information from anywhere, at any time.
Personalized bookkeeping offers a more efficient, accurate, and cost-effective solution for managing a growing business's finances than older desk-bound methods.
What should I look for in a personalized bookkeeping service?
Getting a bookkeeper or part-time bookkeeping service on board is a big decision, one that can impact your business for years. Look for a bookkeeper or company with experience in your industry - especially if you work in a niche environment. Also, remember the importance of communication and availability. You want a bookkeeper who will be accessible and responsive to your needs and questions, and who will keep you updated and informed on any possible sticking points.
Outsourced CFO Services
At the base of every company’s finance function sits a bookkeeping and reporting process that needs to be rock solid. The team at Outsourced CFO can assist with streamlining your bookkeeping functions through cloud-based, personalized services and software automation.
A streamlined flow of financial information gained through cloud-based accounting enables higher-value financial activities that support your company’s growth, while the lack thereof hinders the ability to make quality financial decisions. Look no further than Outsourced CFO for.
- Income and expense allocations that are accurate and make sense;
- A clean balance sheet that reflects your company’s financial position;
- Cash flow reports that help you clearly see what comes in and what goes out;
- Debtors and creditors' information that support your cash flow cycle;
- A bookkeeping and accounting team that cares about you and your company.
Deploy the best cloud accounting tools with Outsourced CFO and support your finance team’s capacity with a dedicated team of accountants who can help get your books in order. For more information visit www.ocfo.com and contact one of our expert consultants.
