If you do a survey in the market, you will come across a large number of firms that provide bookkeeping services, but not all of them are created equal. The problem is that it is not possible for businesses to test each of their options and distinguish the good from the bad. The only thing that can be done is to choose a service and commit to them, but you might realize down the road that you have made a mistake. The key is to learn to evaluate the various options at your disposal in order to make the right choice as per your business’s needs. How can you do that? The following 3 steps can come in handy in choosing a quality bookkeeping service:
Step 1: Price evaluation
While this might seem surprising, price is something that needs to be taken into consideration. Yes, you can judge a professional bookkeeping service by their price because no business wants to pay a dime more than they absolutely have to. Therefore, price does matter, but this doesn’t mean that you want to be cheap and just want to consider the lowest cost option. Evaluating price means the way the bookkeeping service will charge you.
There are some services out there that charge businesses on hourly basis and these should be avoided because you will never know how much you have to pay. Secondly, hourly rates incentivize them to take more time or making things complicated so they can earn more. Likewise, package rates should be avoided as every business is different and one-size-fits-all approach can never be used in bookkeeping. Opt for services like Xero accounting Singapore that offer a custom quote after assessing the business’s needs.
Step 2: Service evaluation
It is extremely important to know who you will be doing business with. You are going to provide them with access to your financial information and depend on them for your financial reports, tax payments, business decisions and government records. Thus, you don’t want to be forgotten about, screwed up, left undone, lost or handed off to some random third party with no experience. It is best to avoid hiring CPA firms for bookkeeping and don’t look at offshore options either. Similarly, don’t go for services that are one-man or one-woman operations. Look for a dedicated service that can provide you the time and attention you require.
Step 3: Process evaluation
The final step is to assess the process and see if it will work for you. Every service is different and not every method is going to be a good fit with your business. For instance, some bookkeeping services may want to come to your office to work whereas others want you to scan every receipt. Both these options are time consuming and very inconvenient for a business. Also, don’t choose a service that uses non-standard accounting software or doesn’t allow you to access your own file. Opt for a service that has a tech-forward and painless process and promotes two-way information flow.