Top 5 Bookkeeping Myths
Myth 1 - Bookkeeping is Just Simple Data Entry, Anyone Can Do It.
Bookkeeping encompasses many different aspects of the financial health of businesses. There are payrolls to run, tax reporting dates to keep up with, accounts to reconcile, categorizing purchases for an easy tax time, and more! Our bookkeepers have over twenty combined years of experience in the field and know how to keep the financial side of the business running smoothly. Using a bookkeeper can give you back several hours a week to do what you do best.
Myth 2 - Bookkeepers and CPAs Are The Same.
There are many differences between the two professions; for example, bookkeepers provide more day-to-day services, and businesses usually utilize CPAs around tax season, during an audit, or for specific planning purposes. Bookkeepers and CPAs work together to keep businesses in good financial health.
As mentioned in Myth 1, bookkeepers usually handle payroll, journal entries, state and federal tax reporting, reconciliations, accounts payable, and accounts receivable. Click here to see some of the services we offer. An accountant uses data from bookkeepers throughout the year to put together a tax return. They also can analyze the data in great depth from year to year and help plan for the future.
Myth 3 - Bookkeepers Embezzle.
Hiring a bookkeeper can seem intimidating. It could be worrying to let an outsider know your business's financial information. An outside bookkeeper can catch irregularities from inside the company that stops fraud in its tracks!
You might also worry about handing over personal information and control. But with bookspring, all of our employees are thoroughly vetted to ensure the security of your information. Our bookkeeping services can provide an easy-to-understand overall picture of your business's financials without you having to lift a finger!
Myth 4 - Outsourcing Means Overseas.
You can outsource your bookkeeping without sending the job overseas. Any third party providing services are outsourced services. All bookspring clients are serviced by professional bookkeepers from our office in Sioux City, Iowa.
Myth 5 - Only Large Businesses Can Afford A Bookkeeper.
Bookspring provides monthly bookkeeping services for a fraction of the price of an in-house bookkeeper. Many small businesses in the area use our services, including several restaurants, bars, retail shops, and more! Use our no strings attached Free Quote Tool to see how affordable our monthly services are.
Bonus Myth - Department of Labor Posters Cost Money.
This one is pretty specific but hear us out. Some people will call businesses and inform the owner that they need to buy the posters required by the Dept. of Labor through this random person's company. According to the Department of Labor's website, you can download the posters as PDF files for free and print them yourself or have them sent to you in the mail. It's all laid out in the FAQ here and here.
The link to download your required information posters is here.
What other myths have you heard relating to bookkeepers or bookkeeping?