In most small businesses, bookkeeping is a major problem.
The owner assumes he needs to keep bookkeeping in-house, but doesn’t want to pay much, usually $15 or less.
So the bookkeeper hired is usually able to do only about 75% to 80% of what needs to be done, leaving a competence gap.
The owner wastes a lot of time fighting bookkeeping battles. And the owner still never gets the timely, accurate financial information needed to make profitable business decisions.
With current network technology and cloud computing, though, you can go paperless and completely outsource bookkeeping and accounting!
By outsourcing bookkeeping and accounting, you free huge chunks of time and get the accurate information you need to run your business.
— Here’s how the Real Time Business Cycle solution works:
It starts by going paperless and every evening scanning the day’s papers into a paperless system.
Your business bookkeeping and accounting is handled by a team of people.
On the team are data entry clerks, bookkeepers, accountants, and CPAs.
For each transaction your business does, this outsourced bookkeeping team matches the bookkeeping task to be done to the right skill level. For example, CPAs don’t do data entry tasks. Data entry clerks don’t make complex decisions about taxes.
Each business day, this outsourced bookkeeping and accounting service provides you with the accurate information you need to make profitable business decisions.
You get daily reports that tell you exactly where you stand:
1. Profit & Loss — so you can answer the question: Did I make money yesterday?
2. Sales — so you can answer the question: Were the sales profitable? Here you are looking for gross profit margin to know who the 20% of your clients are that make you 80% of your profit.
3. A/R — so you can answer the question: Who owes you money and do you need to take action? We all know old Accounts Receivables (90 days past due or longer) are very hard to collect.
4. Expenses — so you can answer the question: Are they too high? You must be in control of what money leaves the business.
5. Cash on hand — so you can answer the question: Do I have enough money for today’s and tomorrow’s needs.
By going paperless and outsourcing your bookkeeping and accounting, you can free huge chunks of time and get the accurate information you need to run your business.
— Bottom Line
You’ve probably seen the UPS commercials about logistics.
UPS argues that small and mid-sized businesses don’t need a large warehouse, distribution center, or global network to access the new logistics. They just need UPS. UPS has already built the systems.
By tapping into those systems, you can operate your business with the heft of a big guy, no matter how big you actually are.
UPS is right!
Exactly the same logic applies to paperless office systems and to outsourced bookkeeping and accounting. The systems exist. And they are easily and inexpensively available to small and mid-sized businesses.
By outsourcing your bookkeeping and accounting, you get the accurate numbers you need to manage your business.
You can analyze your business so you know, for example, which 20% of your customers are generating 80% of your profits. Then focus your efforts where they produce the greatest results.
With the Real Time Business Cycle solution, your small business achieves big leverage.