Accounting & Bookkeeping & Small Business Forum

[Guest]

My son is starting a residential care facility. He has asked me for advice since I prepare taxes; but I'm not familiar with accounting software. Would it be better for him to just hire a bookkeeping service? Do they set up the books for your business? How do they handle bookkeeping entries? Do you provide them with the paperwork on a weekly basis or do they come into the business? Exactly how does it work? He is a total novice, but smart and I think he could learn how to make the entries himself. I just don't want him to mess up his books. He's an S-corp.

[Guest]

Suzanne,

The answer is...all of the above. Normally a good bookkeeping firm will do all of them, ether you take the paperwork to them or they pick it up for you or they set up your company on the system and train you. You tell them what you want and then go from there.

Good Luck

[Guest]

Hi Suzanne,

Contragulations to your son and I wish him great success.

If he has the funds to hire a bookkeeping service I would recommend it for a number of reasons but most importantly he will find that he will have many hats to wear to be successful with respect to operating and marketing his business. Bookkeeping is a profession and I assume not one your son is interested in learning. Keep in mind that accounting software is a tool like Lacerte or other tax prep packages. Have such tools do not make you competent to prepare taxes or do accounting.

Having said that many people do manage to keep track of their cash successfully by using Quickbooks and if your son can not afford professional help it can be solution for him.

With respect to how working with a bookkeeping service works they are all over the map. Some will come to his location and do the accounting, far from ideal perhaps because one of the main economic advantages to using an outsourced bookkeeper is the cost savings of not having to provide hardware, an office, etc. (ie reduced overhead).

Some firms will pick up the material on a periodic basis, usually designed to suit the number of transactions your son's business will generate. Scanners are also very popular as are faxed documents so both of those methods can be used to transmit documents.

I would advise that he try to locate and interview several firms and find one that appeals to him as to their working methods. I would guess that any firm will set him up and get him started.

Good luck Suzanne. I think the smart choice here is for your son to keep his focus on running his core business and leave the accounting to someone else.

Regards, Beth