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How Your Small Business Can Prepare for Florida’s Minimum Wage Increase

In recent years, we’ve seen a reopening of the debate over minimum wage. Advocates are currently pushing for an increase to $15.00 per hour by 2026, with the door open to possible increases in the years after that. If you’re a worker, this is good news. A slight bump in the Florida minimum wage can increase the pay you receive, compensating for rising costs of living and other expenses.  However, if you’re a small business owner, this wage increase can lead to tough decisions. Unless you’re a corporate giant, it can be tough to maintain your current roster of employees if you have to pay them more.

In this post, we’ll help you to prepare for the coming changes in the Florida minimum wage. We’ll also provide suggestions about the best ways to navigate the road ahead.

What is the Current Florida Minimum Wage?

As of January 1, 2021, Florida’s minimum wage has increased from $8.56 per hour to $8.65 per hour. Tipped employees have seen a recent increase in their wages, rising from $5.54 per hour to $5.63 per hour. 

According to federal law and in some states, like Florida, employers may pay tipped workers less than the mandated minimum wage. This is called a “tip credit” as employees earn enough in tips to make up the difference.  The “credit” is the amount the employer doesn’t have to pay.  So for employers, the applicable state or federal minimum wage minus the tip credit is the least amount the employer pays tipped employees per hour. If an employee doesn’t make enough tips during their shifts to earn the hourly minimum wage, the employer has to pay the difference.

Are There Plans to Change the Florida Minimum Wage After 2021?

These changes will not stop in 2021. In November of 2020, Florida residents voted to raise the Florida minimum wage to $15.00 by 2026. The minimum wage increases will take place in a phased approach, raising the minimum wage each year on September 30. The proposed schedule will run as follows:

  • $10.00/hour on September 30, 2021
  • $11.00/hour on September 30, 2022
  • $12.00/hour on September 30, 2023
  • $13.00/hour on September 30, 2024
  • $14.00/hour on September 30, 2025
  • $15.00/hour on September 30, 2026

 While there are no specific plans after 2026, the minimum wage increase may increase based on changes to the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region.

An employee hads a customer their food order.

How Should Small Business Owners Prepare for Florida Minimum Wage and Paid Leave Increases?

If you’re a business owner, don’t panic. At Xendoo, we understand the unique challenges facing today’s small business owners. 

Here are some suggestions on ways that your business can prepare for changes in the Florida minimum wage:

Audit Your Expenses

How much are you already spending on overhead, supplies, and operating costs? You may be able to cut a few corners with certain expenses or by eliminating wasted spending. The money you save can be channeled into your human resources budget.

Determine Your Budget

Using these increased wage figures, calculate your new operating budget. Forecasting your operating expenses will let you know what you’re dealing with and provide an idea of what your income needs to be to maintain your profit margin.

Update Your Tech Stack

A tech stack refers to the digital tools you need to run your business. An update can help you to automate your social media presence, streamline scheduling, or integrate automated forms into your company’s website. These improvements optimize your business without the need for additional personnel or work hours.

Check Your Employee Classifications

How many full-time employees do you need? How many part-time employees do you need? Of course, you don’t need to start considering downsizing, but at the same time, it can be helpful to consider what your future needs may be.

Staff Accordingly

You may find that in the future, you can get by with fewer staff members. Perhaps you can rely on part-time staff to fill roles that you currently staff with full-time employees.

Gradually Increase Prices

Your new operating costs will probably push you to increase your prices to maintain your profit margin. However, raising prices slowly will give your loyal customers time to adjust while still ensuring you get the revenue you need.

Outsource Your Back Office

Are you still handling your own bookkeeping and accounting? Paying an employee to handle these specialized tasks may put a strain on your operating budget. Instead, outsource these tasks to a company like Xendoo. We can keep your company up and running without allocating your employees to do the job.

Contact Xendoo Today

The increase in the Florida minimum wage might mean big changes for your business. At Xendoo, we can help you stay ahead of the curve, adapt to these changes, and remain healthy and profitable.

 We understand the challenges that Florida small businesses face. We can provide small business owners with Florida bookkeeping services that ensure accuracy and efficiency so that you don’t have to allocate precious resources to maintaining the books. 

We can also help you with your Florida tax preparation, helping you to navigate the laws and changes that are likely to come your way in the immediate future.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

A woman stress bites a pencil going over her Florida business taxes

How to File a Business Tax Extension in Florida

With so many day-to-day responsibilities that go into running a small business, such as inventory accounting, staffing, bookkeeping, and marketing, it can be easy to forget about the tax deadline. Yet, before you know it, their tax deadline came and went. 

Without a filed return, you may be wringing your hands and asking yourself questions on what to do next. Can you even make payments after a down year? Do you have the necessary paperwork? What do you do now that they’ve missed their deadline? Chances are that you are not alone, but don’t panic. Florida allows businesses to file a tax extension, but you can’t wait too long. Putting it off even further could increase your penalties and put you in financial hardship.

We’ll walk you through the process for filing a Florida business tax extension, so you can keep your business moving without the added stress. 

What is the Deadline for the Florida Business Tax Extension?

Different deadlines apply for federal and state taxes. Below are the deadlines for Florida’s state tax extension and the federal tax extension. 

State Tax Extension

Tax returns for Florida businesses are due by May 1 (the 1st day of the 4th month following the end of the taxable year). However, Florida allows for a six-month extension, which would move the new deadline to November 1st.

Federal Tax Extension

2021 tax deadlines have the following due dates:

  • Sole proprietorships and single-owner LLCs: May 17, 2021
  • Partnerships: March 15, 2021
  • S Corporations: March 15, 2021
  • C Corporations: April 15, 2021 

A Florida partnership or business has the option to file for a six-month extension, which would move the deadline to the following dates:

  • Sole proprietorships and single-owner LLCs: November 17, 2021
  • Partnerships: September 15, 2021
  • S Corporations: September 15, 2021
  • C Corporations: October 15, 2021 

Be prepared to pay a deposit for the taxes you owe. You will also be expected to pay your first quarterly taxes for your business on this date.

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What Forms Do I Need to File to Apply for a Florida Business Tax Extension?

The form you need will depend on the type of business you’re operating. For the Florida business tax extension, you will first need to complete the form for a federal tax extension:

Please note that if you are filing for a federal tax extension, you must also file for an extension with the state of Florida. However, an approved federal extension will not guarantee an extension with the state.

Can I Pay My Balance When I Submit an Extension?

Businesses will have the option to pay their balance when they file for an extension, but all businesses should be prepared to pay at least a down payment for the taxes that they owe.

How Do I Submit My Forms?

It’s faster and easier to file electronically. Form 7004 can either be submitted electronically to the Florida Department of Revenue through Florida’s “File and Pay” e-service system or through the postal service by mailing your completed form to the following address:

Florida Department of Revenue

5050 W. Tennessee Street

Tallahassee, FL 32399-0135

You do not have to send payment with your tax form, but you should be prepared to pay a deposit, as we already noted. Moreover, you should also account for possible late charges or penalties.

Can I File My Extension Electronically?

You may file Form 7004 through Florida’s “File and Pay” e-service system. Most tax preparation software can interface with this system, though if you have trouble, you may wish to contact your software provider or consider filing on paper.

What Happens if I Don’t Pay My Taxes?

If you pay your taxes late, charges will apply in the amount of 10% of your unpaid taxes. An additional 10% will accrue every month in which your taxes are unpaid, up to a possible penalty of 50% of your total outstanding taxes. Underpaying your taxes could also result in interest being applied, though this number varies.

If you don’t owe Florida taxes, you must still file for this fiscal year. Failing to do so can result in a late charge of $50 per month, up to a possible total of $300.

Can Xendoo Help with My Florida Business Tax Extension?

Our bookkeepers and tax specialists are well versed in Florida small businesses and can ensure that your taxes are filed correctly and on time. Plus, Xendoo’s financial experts can keep your records up to date and accurate, so you aren’t panicking but prepared when tax season comes around. If you’re looking for bookkeeping services in Orlando and the surrounding areas, Xendoo can help you to complete forms, meet deadlines, and more. 

Xendoo offers tax and bookkeeping services all over Florida, including:

When you need help, we’re only a click away. Reach out to our team today!

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

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Time to Play Catch Up: Catch-Up Bookkeeping Services for Small Businesses

Nearly 25% of businesses are behind on their books and nearly 41% of business owners try to do their bookkeeping themselves. It happens easily— you fall a month or two behind, then by the time you look up, an entire quarter has gone by, and your books haven’t been updated. With inaccurate and out-of-date books, you might have late invoices, end up over-extending your small business, and not be able to dial in your operating cash flow. You might even be in danger of being non-compliant with the IRS. Perhaps nothing bad has happened yet, but you know it’s time to catch up on bookkeeping

One of the most essential services a bookkeeper can provide for a business owner is to keep the company’s books accurate and up-to-date. Being able to quickly and easily review the status of your finances is crucial to short and long-term success for any business owner. When you know the health of your finances, you can make quicker decisions concerning everything from who to hire next to what marketing strategy recently worked best.

Reasons to catch up/reconcile

Besides being a smart business practice, catch-up bookkeeping provides additional benefits grow growing companies. Such as:

  • Smart/quick decisions: A bookkeeper will review vendor payments and record expenses to manage your spending, helping you manage your cash flow. A bookkeeper will track your sales, so you know what’s most profitable and can focus on what works.
  • Tax compliant: With up-to-date, accurate records, a bookkeeper can assist you during tax season – helping you maximize deductions and stay compliant. 
  • Loan: As you grow, you may want to borrow money or open a line of credit. Your lender will want accurate financial statements, and ideally, you aren’t scrambling to create them right then and there.

What is catch-up bookkeeping?

A bookkeeper will review source documents such as your monthly bank and credit card statements, invoices, payroll, receipts, and record basic accounting information for you, such as your monthly reconciliations, in your company’s books.

 

Finacial documents in a assorted colored folder fan across a table.

How do I catch up on my bookkeeping?

To get ready to catch up on your bookkeeping, you’ll need to get organized and get ready to reconcile!

Gather your paperwork

Some of the paperwork and documents you will need to gather for your bookkeeper are:

  • Receipts
  • Bank and credit card statements
  • Invoices
  • Debt collections
  • Business expenses
  • Vendor accounts

Reconcile your bank accounts

  • Each month you need to reconcile all of your bank and credit card accounts. First, make sure all transactions for the month have been entered. Using your bank statements, you can make sure all of the transactions in your books match the transactions in your statements. This allows you to find any errors in your books and ensure your records are accurate.
  • It’s easy to fall behind on reconciliation, especially if you come across reconciliation errors that need fixing. If you are too far behind on your monthly reconciliations, the bookkeeping team at Xendoo can help you get organized, reconciled, and caught up.

Collect W-9s, 1099s, and W-2s

  • W-9s are IRS forms that all business owners must keep on file for any self-employed workers (such as freelancers and independent contractors), to keep track of their external team members. If you employ subcontractors, you’ll need to make sure you are collecting these important forms.
  • When a small business pays an independent contractor $600 or more in a given year, they must report these payments to the IRS using a 1099 form for the contractor. 
  • A W-2 form shows the amount of money an employee made, and the amount of taxes that were withheld from paychecks throughout a calendar year.

Go digital

  • Reduce the amount of paperwork you have to keep up with by choosing to have paperless bills and bank statements. 
  • A good choice for the environment, too.

 

Tow colleagues discuss as they sit at a table with their laptops open

How much does catch-up bookkeeping cost?

Starting at just $150, your dedicated Xendoo team will catch you up and set you up for success with a solid bookkeeping system, or you can utilize our ongoing bookkeeping services. Once you know how good that feels, you’ll want to sign on for a monthly bookkeeping service package that fits your business needs. 

You’ll never worry about falling behind again, knowing your dedicated financial team is on it, your up-to-date records are always available, and there’s an expert at your fingertips to answer any questions. You can count on using your books to make quick, smart decisions – leaving you with a healthy, growing business.

Leave catch-up bookkeeping to the professionals

It’s overwhelming to discover a pile of late invoices and frustrating when you can’t dial in your operating cash flow or realize you’ve over-extended your business expenses because of inaccurate books. Then tax time sneaks up, and you realize you’re non-compliant with the IRS and need someone to organize your financial data quickly. If you’re time-starved and neglecting your bookkeeping, it’s time to enlist Xendoo for your catch-up bookkeeping service. 

Let a professional sort your books for you and develop a bookkeeping system that will serve you well now and for the future. Xendoo can quickly and accurately catch you up, setting you up for success.

Always know your company’s financial status and sleep soundly at night with Xendoo’s expert support.

A man in an oxford shirt looks at his bookkeeping on his laptop

Why You Should Outsource Your Online Bookkeeping Services

It’s common for a business owner to want to save money on outsourcing bookkeeping services and do it themselves thinking, What can go wrong… it’s just data entry!?” But, it’s all too common to make novice mistakes that can cost you a lot of time and money. Plus, your financials become more complex as your business grows – more expenses, and ideally more income! And you may want to borrow money or open a line of credit, so you don’t want to be scrambling to provide up-to-date financials for your lender right then and there.

Keeping accurate books takes a lot of time and focus which is why you need a bookkeeper.

What is outsourced bookkeeping?

When you don’t have the complexity or volume of transactions to require hiring a full-team bookkeeper or accountant (yet!), but you need a reliable source to delegate this important work to—choosing outsourced bookkeeping is the way to go.

The size of your business and the number of monthly expenses you incur play a large role in estimating the pricing for outsourced bookkeeping services. A popular option for bookkeeping services for small businesses are packages that charge a fixed amount every month because it’s easy to budget for, and it can cost less than half what you would pay hourly for the same amount of service. That’s why Xendoo offers this pricing structure with a variety of package options to fit your specific company’s needs.

Why should I outsource my bookkeeping?

Being a successful entrepreneur doesn’t equal being an expert at financials. One mistake can lead to tax issues and may require additional effort or redoing an entire month of books, so outsourcing bookkeeping services save you time, money, and stress. From entering transactions to monthly reconciliations to real-time tax coding, you gain accurate, up-to-date books and a dedicated financial team of experts who can answer questions regarding:

  • Tax savings advice, such as when to make capital purchases, what you can deduct, and how to reduce taxes on capital gains
  • Answer your questions about financial reports, cash flow, depreciation, and other accounting processes
  • Identify opportunities to improve profit margin and business growth
  • Help set up systems for business accounting and teach you best practices
  • Keep you tax-compliant and legal, prevent missed deadlines and noncompliance penalties

What are the benefits of bookkeeping?

Outsourced bookkeeping saves you time, money, and headaches! It can scale with your business as you grow, and it lets you focus on your business instead of just the books.

  • Time: Small business owners are notorious for spending a large amount of time on administrative work, like employee scheduling, preparing payroll, and especially hours (and hours!) of bookkeeping. It is estimated that small business owners spend 120 working days per year on administrative tasks like bookkeeping. And still, nearly 25% of businesses are behind on their books. 
  • Money: If you’re attempting to do all of your small business bookkeeping on your own, even utilizing programs like Quickbooks or Xero, you already know that you are spending a lot of time and money. If you’ve hired an hourly bookkeeper or accountant you know paying per hour can add up fast. Xendoo offers a flat-rate monthly fee, so you can easily budget for your bookkeeping each month and avoid huge unexpected bills from an hourly bookkeeper.
  • Stress: With so many business accounting software choices now available (Quickbooks, Xero, Freshbooks, Wave… the list goes on), you may assume that letting your computer do everything will be cheaper than the cost and the hassle of hiring a bookkeeper and accountant. But some things still need an expert. When you outsource your bookkeeping to Xendoo you won’t ever need to stress about having your books up-to-date, fixing your novice bookkeeping errors, or being tax compliant and ready.
  • Scale Up: As your business grows, your bookkeeping and accounting needs will grow, too. This means you’ll be entering in more and more transactions each month, making bookkeeping more difficult and time-consuming than before. If you want to take out a loan or open a line of credit to grow, your lender will want accurate financial statements. With Xendoo, you can quickly access your financial statements as soon as you need them.

Being able to quickly analyze the financial health of your business is key to continued growth and success. For a flat monthly fee that works with your budget, you’ll get Xendoo’s bookkeeping service featuring cloud-based software for always accessible, up-to-date financials, plus a dedicated bookkeeping and accounting team to answer any questions. Outsourcing your small business bookkeeping services to Xendoo to save time, money, and stress. 

Start making smart business decisions on the fly while gaining peace of mind with Xendoo.

When You Need to Hire a CPA

Bookkeeper? Accountant? CPA? Which one does your business need, or does it need all three of them? Actually, it depends. Staying on top of your business’s finances is key for a small business owner, but you may need more than day-to-day bookkeeping. When you have more questions than a bookkeeper can answer, you’ll probably need to look into CPA services. Fortunately, Xendoo has you covered. Read on to see if online CPA services are best for you and your business.

What is a CPA?

It’s important to understand the differences between a Certified Public Accountant, CPA, and a regular accountant. A CPA is an accountant who has met specific state and education licensing requirements and passed the CPA exam. So, accountants with the title of CPA offer a higher level of financial analysis for you and your business and can act as a fiduciary on your behalf.

At that same time, an accountant can give you tax savings advice, such as when to make capital purchases, what you can deduct, and how to reduce taxes on capital gains. They can answer your questions about financial reports, cash flow, depreciation, and other accounting processes and identify opportunities to improve profit margin and business growth. Additionally, they can help set up business accounting systems, teach you best practices, keep you legal, and prevent missed deadlines and noncompliance penalties.

What does a CPA do?

Certified Public Accounts can be the financial strategist for Fortune 500 companies or advisors to neighborhood businesses.  CPA act as consultants on many issues, including taxes and accounting. Generally, online CPAs services include:

  • Prepare financial statements
  • Identify red flags and growth opportunities
  • Prepare and file taxes
  • Plan capital purchases and other investments
  • Strategize for scaling the business

When should I hire a CPA?

Whether you’re starting or growing your business, an accountant can help set up financial systems and analyze data so that you can make smarter business decisions. They have the power to forecast business success, diagnose financial health issues, and increase revenue—saving you significant money, time, and hassle. 

So while a bookkeeper focuses on the everyday tasks that maintain your business’s finances, accountants consider the big picture strategy to keep your business strong and growing, and a CPA has an even higher level of financial analysis to assure you’re making the right moves at the right time.

How much does a CPA cost?

Budgeting for bookkeeping and accounting services is tough for a small business. Traditionally, bookkeepers have charged an hourly rate; the more time they spend on your books, the more you have to pay. Typical rates are:

  • Bookkeeper — $30 to $90 per hour
  • CPA — $150 to $450 per hour

Or you may only need an accountant for an occasional project such as tax preparation.

  • Tax return (unincorporated) — $200 to $500
  • Tax return (incorporated) — $800 to $1,800
  • Financial statement — $1,000 to $2,500
  • Audit — $2,000 to $5,000

This is why accounting for a small business can become expensive. Plus, you may decide you only need an accountant for an occasional project such as tax preparation, financial statement, or audit, which costs a fixed amount that can add up, or you may not have allotted this in your end-of-the-year budget. A popular option with small businesses is an accounting service that charges a fixed amount every month. It’s easy to budget for, and it can cost less than half what you would pay an hourly accountant for the same amount of service. That’s why Xendoo offers a monthly pricing structure to our clients, charging a fixed amount every month. It’s easier to budget for bookkeeping and inline CPA services monthly and cost less than half of what you would pay an hourly accountant for the same service amount.

The right account professionals for your business

A small business accounting service will file your taxes, but you’ll need to have your bookkeeping in order so you can provide them with the data and reports they need. Xendoo’s online team of bookkeepers and CPAs will handle everything for you – they will manage all of your bookkeeping and accounting and will file the right return for you, right on time. Plus, Xendoo also takes care of all the filing that goes along with your tax return to itemize your business deductions.

Ultimately, it’s best for you and your business to have both a bookkeeper and an accountant. Making Xendoo your financial partner means joining a community of small business owners who love working with Xendoo’s bookkeepers and CPAs. Xendoo’s online CPA accounting services are ideal for small businesses because the more eyes looking out for your business, the better. Your dedicated financial team provides the perspective on your finances that can help ensure you’re able to anticipate problems and have the appropriate solutions ready to go. In gaining a complete picture of your company’s financial health, you can confidently grow your business.

How Small Business Bookkeeping Solutions Can Make Your Life Easier

Small business bookkeeping services can support you with everything from simple data entry to offering more in-depth tax filing services and business consulting. Bookkeepers can help you with the big picture aspects of running a small business, such as reviewing options for how to finance your business. Here are some helpful ways to consider what the best solution is for your business.

What are the two types of bookkeeping?

There are two main types of bookkeeping solutions that every small business needs. 

Simple Bookkeeping Services: If you can manage some of your business’s accounting each month on your own but you need a little extra help, a part-time bookkeeper might be a good solution for your business. A part-time bookkeeper can do work such as inputting receipts and tracking employee time sheets, as well as managing accounts receivable and accounts payable. Keep in mind that when hiring a part-time bookkeeper, you will still need to have someone in-house, such as yourself, reviewing the bookkeeper’s work.

Full-service Bookkeeping: A full-time bookkeeper handles the day-to-day accounting functions for your office. They can take on a wide variety of tasks such as managing your accounting processes and software. They can handle simple yet time-consuming banking tasks such as making deposits. And among many other things, that can prepare financial statements and work with your accountant.

Keeping your books in order and up-to-date is the foundation of the financial strength of your business. Xendoo offers both simple and full-service bookkeeping solutions through partnerships with Xero and Quickbooks. We take the hassle out of small business bookkeeping and accounting. You’ll always have 24/7 visibility and access to your up-to-date records for peace of mind.

What is the easiest bookkeeping solution for a small business?

The easiest bookkeeping solution for a small business is an online bookkeeping service. Xendoo makes small business bookkeeping easy – when you sign up for a Xendoo plan, you’ll get access to user-friendly online bookkeeping tools, as well as access to a dedicated bookkeeper and accountant. Xendoo provides tailor-made bookkeeping solutions for every type of small business. 

The most popular bookkeeping package with Xendoo is the “Flight” plan. It is the perfect option for small business owners who have less than $60,000 in monthly expenses. It is a full service bookkeeping package and includes a business and state tax return. When you choose the Flight plan with Xendoo, you will receive weekly bank account and credit card reconciliations and you are guaranteed to receive all of your monthly financial reports by the 20th of the following month. 

Xendoo bookkeeping packages for small businesses include a dedicated bookkeeper to handle your cash basis or modified accrual bookkeeping with Quickbooks or Xero accounting software. Your plan will include profit and loss statements, balance sheets, monthly trend graphs, a standard chart of accounts, tax returns*, tax consulting* and more. You will have access to Xendoo’s cutting-edge technology including our robust and easy-to-use mobile app.

What is the best way for a small business to do bookkeeping?

The best way for a small business to do bookkeeping is to keep your records up to date. Whichever small business bookkeeping solution you choose or approach you take, like cash or an accrual basis of accounting, or whether you match your chart of accounts to your budget – this is the most important thing to remember. Up to date records ensure you are ready to make business decisions at any time, and you are always tax ready.

Xendoo’s bookkeeping solutions make this easy. Using integrations with Quickbooks or Xero, Xendoo digitally reconciles your books weekly to provide you with financial reporting so you can stay on top of your business’s financial health at all times. Having 24/7 access to your current records gives you the power to make smart decisions about your business every step of the way will lead to growth and success.

What can a small business bookkeeper not do?

Since the traditional role of a small business bookkeeper involves managing the day-to-day financial record keeping of a business – ultimately, it’s best for you and your business to have both a bookkeeper and an accountant. Accounting is a robust process used to manage a company’s financials – it includes recording, classifying, analyzing, consulting, and reporting. Accountants have the title of Certified Public Accountant (CPA) and offer a higher level of financial analysis. They interpret the data recorded by the bookkeeper to offer a higher level of financial analysis, based on the data recorded by the bookkeeper to make business decisions. 

It’s important to understand the difference between an accountant and a Certified Public Accountant, or CPA. CPAs have completed specific licensing requirements and provide certain services that accountants without the designation can not – such as preparing an audited financial statement.

The varied perspectives of a bookkeeper and an accountant on your finances can help ensure you’re able to anticipate problems and have the appropriate solutions ready to go. To hire just one or the other could leave you with an incomplete picture of your company’s financial health. The more eyes looking out for your business, the better.

The Best Bookkeeping Service For Your Small Business

There are different types of bookkeeping services for small businesses. You can handle it all yourself, utilizing software like Quickbooks and Xero; hire a part-time small business bookkeeper; or opt for a full-service bookkeeping service like Xendoo that can handle it all for you. 

What are the different types of bookkeeping services for small businesses?

You may choose to handle all of your small business bookkeeping on your own, but keep in mind that it’s more than just simple data entry. You’ll need to familiarize yourself with your software of choice, such as Quickbooks or Xero and set up your Chart of Accounts among other things – and of course make sure your records are always as up-to-date as possible. 

A popular option for small business owners is to hire a part-time bookkeeper. This is a great solution for small business owners who have enough time to take on some of the bookkeeping work themselves or who have someone on staff who can manage it. One important aspect of hiring a part-time bookkeeper to keep in mind is that you will still need to oversee and be involved with the part-time bookkeeper’s work. You’ll need to review their data entry, monthly reconciliations, and any communication they have with your accountant. Additionally, you will need to organize receipts, invoices, and any other financial paperwork for them and make sure to stay organized on your end.

As a small business owner, you wear many, many hats. From sales and marketing to employee management and not to mention, your specialty – the good or service you set out to provide in the first place – whether it’s operating a small bakery, selling home goods, or running a childcare center – you do it all. When you are ready to catch up on your bookkeeping and make sure it always stays up to date, you can opt for hiring a full-service bookkeeping service like Xendoo. Xendoo is proud to support thousands of small business owners with their financial needs to help set them up for success and provide financial peace of mind. It’s one important thing you can take off of your to-do list, and you can rest easy knowing your financials are being properly handled throughout the year by professionals – no more worrying about when you’ll do your bookkeeping, and no more playing catch up when tax time rolls around.

When should a small business hire a bookkeeper?

It is estimated that small business owners spend as many as 120 working days per year on administrative tasks and bookkeeping. That’s almost four months! This is time that could be spent doing the work you love that led you to start a small business in the first place. Perhaps you set out to own and operate a dog grooming business – you never thought you would end up spending all your days at your computer with piles of paperwork! Small grocers, massage therapists, photographers, dentists, even nail salon owners – every small business owner is different, yet they all need someone to handle their bookkeeping. 

An excellent time for a small business owner to consider hiring a bookkeeper is when you see that your small business is growing. Perhaps your bookkeeping tasks are taking more time than you can afford, and your books are never up to date. Maybe you recently added on a new location, hired more team members, or have seen a sharp increase in sales – whatever the case is, it looks like your small business is growing. As your business continues to grow, your bookkeeping workload will also increase, so if you’re posting more and more transactions each month, entering data on a regular basis can make bookkeeping more difficult and time-consuming. Even when you use online bookkeeping software solutions such as QuickBooks or Xero, a bookkeeping service for small business service can help you manage and maintain your books accurately and save you a large amount of time and money.

A bookkeeper will keep your company’s financial records accurate and up-to-date by performing basic bookkeeping services, that in the end can take hours and hours that a busy small business owner just doesn’t have. This includes regularly reviewing source documents such as your monthly bank and credit card statements, invoices, expense reports, payroll, and receipts, and recording basic accounting information for you – such as your data entry and monthly reconciliations – in your company’s books.

Small business owners notoriously spend a large amount of time on administrative work, like employee scheduling and management, preparing payroll, reviewing invoices, and especially hours and hours of bookkeeping. When you find you can’t afford to spend your precious time on administrative work like bookkeeping any longer, you know it is time to delegate and outsource the work to a bookkeeping service for small business.

Are there bookkeeping packages for small businesses?

Xendoo offers bookkeeping services for small businesses packages of all shapes and sizes. No matter the plan, each one comes with a dedicated financial team – you will have a dedicated bookkeeper assigned to your account who is supported by a full team of bookkeepers that have your back, and are available to talk, text, or email with you as you navigate your busy workday.

Xendoo offers five different bookkeeping service for small business plans for small business owners to choose from – and even offers custom plans. To determine which bookkeeping package is right for your small business, check out the pricing page on the Xendoo website. You’ll see that the five different packages are determined by the amount of your small business’s monthly expenses. We know every small business is unique, so when necessary, we work with our customers to create custom bookkeeping packages to suit their specific needs and goals. 

And it’s easy to change your Xendoo plan if you ever need to! Perhaps your monthly expenses have increased and you need to bump up to a more robust plan, or maybe you are in a slow season and need less help with your bookkeeping. Whatever the case may be, you can easily log in to your account and modify your plan.

No matter which bookkeeping service for small business package you choose from Xendoo, you will be up to date, compliant, and ready to grow. Not to mention, you will have peace of mind and one less thing on your to-do list. You will rest easy knowing you are not part of the 25% of small business owners who report that they are behind on their bookkeeping. 

Do bookkeepers save small businesses money?

Bookkeepers and bookkeeping services for small businesses save both time and money. Small business owners notoriously spend a large amount of time on administrative work, like employee scheduling, preparing payroll, and especially hours and hours of bookkeeping. It is estimated that SMBs spend 120 working days per year on these administrative tasks and bookkeeping. A bookkeeper can save you money by helping to maximize your business’s income, help you determine where you can cut costs, and give back your valuable time to focus on the reasons you started your business in the first place. For a set monthly fee, Xendoo’s bookkeeping solutions come with a fully dedicated financial team to save you time, money, and most importantly – stress.