How to Save Money with Bookkeeping Cleanups

Accounting for the self-employed is often overlooked and not prioritized, especially for a start-up. Many new entrepreneurs are spending time generating revenue instead of taking care of their finances. When they finally realize the need for it, they end up hiring a CPA or a bookkeeper which can be expensive.

Here are 3 ways to reduce the cost of bookkeeping cleanups:

1. Doing your own accounting and bookkeeping cleanups
2. Hire a bookkeeping freelancer instead of a CPA firm throughout the year
3. Look into family or friend’s businesses to maybe help your business (may even get the family discount!)

Why are Bookkeeping Clean ups Important?

There are many things that self-employed, women-owned businesses need to take care of which can be overwhelming at times. One such task is that of accounting and bookkeeping where it is necessary to have a systematic approach with cleanups every quarter or so. For this reason, it is better to implement a system from the beginning than wait.

Bookkeeping is one of the most important parts of running a business. But when you are self-employed or running a start-up, it can be hard to keep up with it. What’s more, women-owned businesses often struggle with bookkeeping because they are balancing their careers and their businesses at the same time as well as usually playing homemakers at home.

Doing Your Own Bookkeeping and Accounting Can Save You Money

The good thing is that there are many tools out there to help you do your own bookkeeping. Here are some steps that you should take before you start this process:

1. You should start by gathering all the receipts and invoices that are related to your business.
2. Once you have gathered these items, you will need to organize them into the appropriate categories so that it is easier for you to track the expenses and revenues for your self-employed business.

The good news? You don’t have to be intimidated by bookkeeping anymore! There are plenty of reliable and affordable ways to keep your books clean. From using online software like QuickBooks Online, QuickBooks Desktop, FreshBooks, or Xero to do your bookkeeping for you – there is no shortage of ways to get this done!

Hire a Freelancer or Contractor instead of a CPA Firm Throughout the Year

A lot of women-owned businesses are unaware that they can hire a bookkeeping firm to do their bookkeeping cleanups instead of hiring a CPA and saving a significant amount of money. What is a CPA and how much do they cost?

1. A Certified Public Accountant (CPA) is an accountant who has passed a certification exam. These professionals are qualified to give advice on complex accounting matters, prepare tax returns for businesses and individuals, and ensure that all the financial operations of a company are in accordance with government regulations.
2. The cost of hiring an CPA depends on many factors, such as your location and the type of services you need. A CPA can charge anywhere from $150 to $300 per hour, but more often charges $200 to $275 per hour.

Hiring a bookkeeping firm instead of a CPA could be cheaper because:

1. Bookkeepers don’t charge as much as CPAs do and many times, a bookkeeping professional has certifications or a degree and is qualified to do the back-office accounting as well.
2. Bookkeeping firms usually charge between $40 and $100 per hour but some even offer their services for free to start-ups or new businesses that cannot afford the hourly costs of a CPA.

So, a lot of small business owners will hire a bookkeeper to keep their books clean throughout the year and then hire a CPA for tax time.

Hire or Ask Family for Help

Even though it can be very stressful to ask your family or friends for help with your accounting and bookkeeping, there are several benefits. Lack of knowledge is not one of them. You may have accountants, bookkeepers, and business advisors in the family, and they can be very helpful for your start-up business.

It’s not always easy to hire a professional accountant or bookkeeper if you’re on a tight budget and need help with your bookkeeping cleanups. But you don’t have to break the bank when you’re self-employed or running a small business. There are plenty of ways you can cut costs and save money without sacrificing your sanity. One way is asking for help from trusted friends and family members – even if it’s just an hour a week.

In today’s world, it is often difficult to balance work and family. Women-owned business owners have an extra obstacle to face in balancing these two things. They are often faced with other responsibilities outside of the workplace such as childcare duties, cooking, cleaning, and more. Start-ups that struggle with balancing all these responsibilities often look for ways to save both time and money when it comes to their bookkeeping.

In this article, we’ve discussed how to save money with bookkeeping cleanups. Not only will these solutions help you save money, but they will allow you to thrive and flourish.