Bookkeeping services are the backbone of the financial reporting for a business. Bookkeeping as a service helps companies report business income, prepare and file state and federal tax reports. Online bookkeeping organises a business using online invoicing, tracking payables and receivables, meeting tax deadlines and process payroll with ease.
Bookkeeping as a service is a convenient way for companies to leverage online software services for accounting automation. Here’s a quick overview of how it works.
1. Day to Day Account Management
The basic bookkeeping tasks involve recording transactions for the financial year. It involves reconciliation of bank statements, taking care of the inventory, receipts, expenses, sales, purchases etc. The online bookkeeping services prepare upto date reconciliation for your financial transactions. With bookkeeping as a service, you can stay on top of your finances:
a) Recording of year round entries for the completed financial year
b) Preparation of Ledger Accounts for Cash, Assets, Sales, Purchases, Expenses
c) Reconcile all bills, receipts and expenses
d) Bank reconciliation statement on current date
e) Track account receivables and payables till date
f) Inventory & stock summary as on date
g) Reconcile fixed assets, long term liabilities and capital expenditures
2. Tax Preparation Service
Companies typically pay an awful lot of amount on tax reports preparation and regulatory reporting. As per SBA, SMB owners spend an average of $12,000 a year on direct and indirect regulatory costs. Over 40% of them spend over 80 hours on their accounting reports.
The online bookkeeping is a welcome relief. It helps companies to prepare their tax reports for federal and state filing with ease. The bookkeeping automation lays the foundation for all the data that needs to be submitted to the government. It helps companies prepare tax reports like 1099s, 1099-MISC, W8 BEN, W8 BEN-E, W9, income taxes, 1040 etc with confidence.
3. Streamlined Automation
The online bookkeeping service works seamlessly behind the scenes to get all your data in sync with your bank accounts, credit cards, bills, expenses and other transactions. You can access the live status updates of all your transactions, tax reports and financial data.
With bookkeeping automation, you can supervise closings, record, reconcile and track transactions to get up to date books each week, month, quarter or financial year. The bookkeeping automation also sets up processes for sending up to date books for the chosen financial period to the designated persons. It creates live reminders for tax and regulatory compliance reporting as well.
Organisations can use bookkeeping software for choosing the right accounting policies. They can opt for industry specific or custom financial reporting as per their needs to uncover business insights.
4. Up to Date Financial Statements
Bookkeeping as a services uses all bank accounts, credit card transactions and statements for the following:
a) Categorizing all financial transactions
b) Reconciling all the bank accounts, credit card and cash payments etc.
c) Track all payables and receivables
d) Prepare the financial statements
The bookkeeping helps companies manage their financial and accounting statements. Once the reconciliation of accounts is done, the accounting software can prepare the balance sheet, profit and loss, cash flow and trial balance reports. The compliance reports for state and federal governments are also done with up to date accounting data.
5. Prepare for Audits
The online bookkeeping and accounting software helps companies build the right systems for financial automation. It helps them with the audit trail of each and every transaction. The companies can use the online services for documentation of expenses, adopting best practices for revenue recognition, streamline operations, cost of goods, R&D tax credits etc.
Companies with strong internal checks and balances have fewer regulatory issues. They have necessary documentation, processes and policies with accounting automation. When companies are growing and operating in multiple jurisdictions, automation is of great assistance.
Businesses can maintain proper R&D tax credits and complete documentation of their financial data using accounting software. It is easier for claim processing, submitting the necessary documentation to back up your claim with the IRS.
6. Tax Expertise & Filing Support
Bookkeeping as a service not only helps you keep your books upto date, but also helps with tax expertise. Kreyon provides assistance for companies to get dedicated tax experts for guidance and handholding support for tax filing. By automation, you get access to all your regulatory reports with the data prefilled with AI based account categorization.
Your business queries and industry specific R&D tax credits etc are discussed and finalised. On average, companies receive higher refunds, faster resolution and more accurate tax filing. This leads to improved business management & compliance with federal as well as state laws for your business.
7. Cash flow Analysis with AR/AP
Managing accounts receivables and payables can have a significant impact on the cash flow of a business. With automation of accounting, companies can manage their invoices, account receivables by setting up automated reminders for payments. The payment collection process can be done online with automation. Late fees rules, taxes and complete lifecycle management of invoices can be done with online bookkeeping.
The supplier supplier invoices, petty cash and expenses can also be done with the bookkeeping software. The payments are reconciled with ledgers real time as per the latest banking feeds. The real time cash flow improves visibility of revenues and expenses for companies. Companies can zone into their financial statements and analyse their cash flow. The financial insights act as levers for defining company policies like imposing late fee on invoices or providing discounts for annual payments etc.
Kreyon Systems offers bookkeeping services & accounting for companies using SaaS solutions. The solutions are geared for increased organisational productivity, accounting reports, regulatory compliance and reliability. If you need any assistance , please get in touch.