Top three reasons to hire a Bookkeeper

Top 3 reasons to hire a bookkeeperThere are many reasons to outsource the bookkeeping for your business. I have come across some recurring reasons why business hire a bookkeeper.

One reason is time. Business owners are busy with day to day operations, marketing, customer service, employee training, networking, etc… Outsourcing your bookkeeping will help you free up time to grow your business and make more money. Also, having clean and timely financial statements will help you make better business decisions.

Two a good bookkeeper will help you manage your cash flow. They will spot weaknesses in expenditures and suggest areas of improvement. Cash flow is vital to a business and should have a close eye kept on it.

Three starts with a question. Do you enjoy doing your bookkeeping? If the answer is no, mistakes are bound to happen. Worse yet, you will start to fall behind on the tasks. Financial statements are one of the best tools for your business and it’s growth and survival. It’s not something to think lightly about.

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7 Best Business Practices

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Seven best business practices for small businesses. Are you following them? Click here to Download Free Book and request your copy today!

  • Contents
  • Business & Personal – 1
  • Budget – 2
  • Financial Statements Reviewed – 3
  • Systems & Procedures – 4
  • Tracking Expenses – 5
  • Security System – Duel Control 6
  • Payroll –
  • Contact Information – 8
  • Eagle Eye Bookkeeping Services, LLC. – 8

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Excel – Saturday

I have come across many people over the years who did not realize that filters were available in excel and after I showed them how to use them they have all told me that I have now saved them tons of time in reviewing data.   So today we are going to talk about the use of filters and how they can help you to analyze your data more efficiently!

First, to locate the filters you will find them on the home tab in the Editing section on the far right hand side:

Editing section

This is our sample data set that we have created in excel and would like to filter for our example today:

data set

In order to turn filters on, highlight the row you want to use (Row one in this example) for your filters and then click the filter button in the picture above.

filters

After you have the filters in place on your chart you can then begin using them.  For this example we will click on the filter for the Product column.  When you click on that filter button you can then choose which items you would like to filter for.  Here are the choices I have selected:

filter choices

Here is what the table looks like after the filters are in place:

new data set

That is how you use filters.  If you have questions you can contact us today for information www.eagleeyebookkeepingservicesllc.com  or to schedule a free consultation.

 

Best Business Practice – Series

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Budget

Variable vs Fixed Expenses

Businesses have both variable and fixed expenses. During the budget process these should be looked at differently. One will remain the same dollar wise but fluctuate by percentage of income. The other will fluctuate dollar wise but remain the same as a percentage of income. It’s important to identify which type of expense they are during the budget process.

Roadmap

Think of your budget as a roadmap to your business. By reviewing your budget and comparing it to your actual expenses it will let you know if you are staying on track or not.

Your budget will show the good and the bad. Both are equally important to know when running your business.

Why do I need a Bookkeeper?

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There are a few good reasons for outsourcing your bookkeeping that would make sense.

  1. You don’t have time– As a business owner you have to wear many hats. As your business grows you will want to spend your time on money producing activities. Hiring the right bookkeeper will help you understand what is working and what is not by presenting you with your financial statements.
  2. Missing expenses– When you get busy or don’t have a solid system in place to manage the financial transactions of your business, expenses can go missing and unrecorded.
  3. Profitability– Knowing where your business stands on monthly basis will help you with making day to day business decisions. You will know three key things. Where you were, where you are, and where you want to be.
  4. Audits and Tax preparation– Having financial statements in order will save you time and money when it comes to tax time.
  5. Forward thinking- The most important thing about having good financial statements is having the ability to think and plan for the future.
  6. Uncomfortable– You are just uncomfortable doing your own financials. It could be that you don’t have a financial background or you want more internal controls set in place.

Contact us today for information www.eagleeyebookkeepingservicesllc.com  or to schedule a free consultation.

Accounting Cycle

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The accounting cycle is merely a routine to follow to finalize your businesses books. Like any routine, consistency is the key to success. We will go over the 5 parts to the accounting cycle and how they can improve your financial statements.

  1. Beginning balance – This is the foundation of the accounting cycle. The beginning balances to all your accounts need a starting point. Starting with accurate information is imperative to getting accurate statements in the future. Think of it as starting your day with a good breakfast.
  2. Transaction for the period – This will be all your financial transactions for a period of time. This will be recording your income and expenses.
  3. End of period adjustments –  Adjustments to the financial statements include any allocations that need to be made to spread out the value of something over time. These include but are not limited to depreciation and prepaid expenses.
  4. Financial Statements – This is the review process. Two things happen in this stage. One, abnormalities are spotted to ensure that every thing has been posted. Two, red flags are spotted that involve the financial security of your business.
  5. Closing balance – After the financial statements are reviewed and analyzed the books are closed and no further entries are made.

The cycle starts over the next month with closing balance becoming your new beginning balance.

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Excel – Saturday

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To start of the first “Excel Saturday” I will go over two lookup formulas. They are essentially the same but are used in two different scenarios. One is called a VLOOKUP and the other is called an HLOOKUP. The difference between the two is the first letter of the formula. The H stands for horizontal and the V stands for vertical. If your data set is vertical you would use the VLOOKUP and if your data set is horizontal you would use the HLOOKUP. Don’t worry I’ll have an example shortly. To illustrate here are two data sets.

Data Set

The left is the Vertical and the right is the Horizontal data set. Now let’s say you have the names but they are in a different order then the data set and you want to lookup and fill in the values from the data sets. This is the blank table starting in cell B15.

Using the VLOOKUP formula and the data set in the top left of the formulas will look like this next picture and the end result will be to the right.

vlook result

For this example we will look at the “Amy” line. Here’s how to understand what the formula for the hours in G16 is saying.  This formula starts off by identifying “who” we are looking up. The $B$4:$D$13 is the data set area and the “2” is stating which column of the data set is going to be retrieved. In this case 2 is the hours column. The false means that we want the result of the exact match of the name. The only difference in the dollar column formula is the number 3 which means that the we want the data in the third column for the dollar amount.

The HLOOKUP we will be using the respective formula and using the data set to the right, the horizontal data set. The results and the formula will look like this.

H lookup result

Everything is the same except that in the HLOOKUP the data set area is different because the data is in a different spot and the numbers to retrieve are theoretically the same but instead of telling it which column you are stating which row.

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