Bookkeeping options in a world of new business owners is about as interesting to most as watching paint dry. But the right bookkeeping option will bring financial freedom and lessen the chances of run-ins with the IRS.
The honest truth is this: Looking at multiple bookkeeping options is boring and tedious. Most new business owners just want to get on with their business and what they love. They don’t always know how important bookkeeping is for their company. Instead of thinking about what good bookkeeping will help them do, most new business owners do is ignore these options until it’s too late.
New business owners should understand why they need to care about their bookkeeping options. They need to understand that good bookkeeping records will:
- Make tax time easier
- Keep their business healthy
- Help access business loans and credit
- Help find investors and donors
- Keep their business operating profitably
When it comes to bookkeeping options, each business owner has to choose one that works well for them. Those that choose an option that doesn’t work well for them won’t want to keep their records and put their entire company at risk of closing.
The Truth About Options
Everyone doesn’t keep books the same. There are some business owners that enjoy maintaining paper logs of their transactions while other business owners enjoy having online bookkeeping choices. While they are completely different, they both are correct. The choices made among bookkeeping options should fit the needs of that particular business owner. Whatever works well is what needs to be selected and maintained.
Online bookkeeping options are great for business owners that don’t have a designated office space or those that don’t want to be tied down to one location. Online options allow people to log into their accounts from any location they choose and update their records at any time they choose. When it comes down to convenience and portability, online options are perfect.
There are other business owners that want to keep their financial records contained to one place only. For those business owners, bookkeeping options with installed software are perfect. These options allow users to install their software on the devices they want and stays there. While that device is the only location they will be able to use to update and maintain their financial records, it’s perfect for them those that will allow access to those financial records to others. The added security comforts new business owners.
In today’s business world, there aren’t many business owners that prefer keeping their financial records entirely written. For large businesses, this is a massive undertaking that requires a specific department to maintain. While it seems inconvenient, keeping a written record of a business’s bookkeeping records serves a huge purpose. It assures business owners there will be no lost records in the event of no internet access. It also gives them a huge level of control because only the most talented bookkeepers will want to take on that challenge and maintain it. For some, talent and skill means more than instant access.
There are different variations of bookkeeping options but these 3 options are the most popular.
How to Choose the Right Bookkeeping Option
There is no easy choice when it comes to bookkeeping options. Every business owner is different and will make a different choice. While it can be intimidating, a choice has to be made. Business owners that choose to ignore their bookkeeping options and keep no records will find themselves very frustrated when it’s time to pay taxes and prepare their annual reports.
When it comes to picking the right bookkeeping option, business owners have to be very honest when answering these questions.
- Who will have access to these records?
- Who will update and maintain these records?
- Where will bookkeeping be done?
- When will bookkeeping be done?
- How much technology will you depend on for day to day transactions?
These questions seem simple but they are very important.
Business owners that don’t want to have anything to do with their bookkeeping systems will want to hire an independent bookkeeper or an in-house bookkeeper. Those that will allow others access to their financial records will want to choose between online bookkeeping options or software options. This will allow others to remotely access their records or come into the office or store to maintain those records. Owners that don’t want to be bothered with others in their financial matters may choose to maintain paper bookkeeping records. With this option, the choice of maintaining those records and who has access to them is controlled by the business owner.
No matter what bookkeeping options are available, it is very important that business owners take the time to choose the one that works best for them. When business owners make the decision that best suites them, they will be more open to maintaining great bookkeeping records.
Without seriously looking at the available bookkeeping options, new business owners are staring bad decisions and operating in the red in the face. Ignoring bookkeeping options will introduce a great business to bankruptcy very quickly.