What You Should Know Before Hiring Bookkeeping Services in New York
Isn’t it great to have a bookkeeper? Well, if you are not quite sure as to how to answer that question, I suggest you read on to learn more about what this article has to say. This article is exceptionally good for you if you plan on taking the next step to invest in a bookkeeper. This article will prepare you on how to invest into bookkeeping services in New York.
Know how to read a balance sheet
To be honest, not knowing your P&L, balance sheet, or any other financial statement, isn’t that big of a deal. Well, if you run your own business, then maybe you should take the time to learn how to read financial sheets, just to make sure your money is in order, but I digress. What I mean is, if you see a potentially knew hire for a bookkeeping position, or looking for bookkeeping services in New York, it would be in your best interest to know how to communicate with that bookkeeper. You’d be lucky to find out he’s a well-qualified accountant, who knows a lot about New York State accounting rules and regulations.
A fashionable bookkeeper would take the time to explain to you what your financial sheets say, and what the law upholds, but it would save you time (and time is money, especially in New York) if you already knew how to read and interpret (to an extent) your financial sheets. Like I said, not knowing how to read your financial sheets isn’t that big of a deal, but your bookkeepers could probably get more work done if you knew how to read your financial sheets already.
Pick a reliable bookkeeping service you can build a relationship with
It’s one thing to hire a bookkeeping service to assist you with your bookkeeping needs. But try investing in a bookkeeper or bookkeeping services in New York that can provide you with what you need, and more. Bookkeeping services should be willing to also invest into you for the long run as one of their loyal customers. A bookkeeper can provide a lot of help towards your business. They can do your day-to-day bookkeeping service, tell you more about rules and regulations in the accounting / financial field, they can even represent you during a tax audit (if they have the proper accreditation to do so). The point is, when hiring bookkeepers, or bookkeeping services in New York, look for the ones that you can grow with, in terms of building a fastening relationship between one another for the long run.
Contractors and Employees are not the same thing
When hiring an employee, make sure that they are employees and not a contractor. If someone has been hired as a contractor, make sure they are listed as so. Here’s a quick hint as to know whether or not the person you have hired is a contractor or an employee. If you’re not taking out taxes from their check, they are probably not an employee.
If you do not know how to setup payroll, please hire a professional that knows how to. This includes knowing whether or not you are hiring a bookkeeping employee or a bookkeeping contractor.
Last thing you’ll want is for a disgruntled employee suing you with an employment attorney, for 3-5 years’ worth of back taxes that you owe.
Keep business expenses and personal expenses separate
Your bookkeeper is going to have a fit if he finds you trying to write off things that can’t be written off. If you use your personal credit card for your business expense, you’re going to make your bookkeeper do unnecessary work to differentiate personal expenses from business expenses. Obtain a credit card specifically for your business expense, and have a personal credit card for your own personal use. It’s New York, we know there is a lot of personal investments you’ll want to spend on, but keep personal and business life (in this case, expenses) separate.
Have a clear understanding on where you want your business to go
When hiring bookkeepers, or investing into one of the bookkeeping services in New York, it’s important for your bookkeepers or the bookkeeping service you’ve hired to be on the same page of your business’s aspirations. In doing so, your bookkeepers will know what to expect, and perhaps find you leeway’s into achieving your goals through financial consultations. Even better, if you’re lucky, a complete miracle of an idea can arise between you two, creating a net worth of billions of dollars!
With that said, hiring a valuable bookkeeper or bookkeeping agency that see’s things eye to eye with you, is a valuable partnership.