Getting Help with Office Bookkeeping
Submitted by: Belinda Bixby
So when are you going to get help with your bookkeeping?
It is natural to resist investing in a bookkeeper and bookkeeping software if you are not required to do so. But the cost of errors and oversights can be far greater. And that’s not just the money, but reputation, image, credit rating, and ultimately your business itself.
You tell your clients that investing in a lawyer can save them in the long run. The same applies for you and bookkeeping. You are an attorney. That’s where your talent lies. You did not put in all of that time and effort obtaining your degree and building your practice to now spend it wrestling with your bookkeeping.
When is a good time to get bookkeeping help?
When you are:
• Starting your own practice.
• Growing an established practice including hiring employees or bringing on partners.
• Preparing for tax time.
• Getting caught up on past financial tasks.
• Preparing to apply for a loan or line of credit.
To put it another way, there is not a bad time to upgrade your bookkeeping system. But there are times when you wish you had.
Here are a few examples where prudent bookkeeping pays off.
First, finding good bookkeeping software.
If you are a new or otherwise small practice, it is tempting to select a small, inexpensive and simple bookkeeping software. You should invest now in a proven full service software that will grow with you. I recommend going to www.intuit.com and looking for Intuit’s QuickBooks Pro – the gold standard general bookkeeping software. You may need assistance configuring it for a law practice. You can also get QuickBooks Premier Industry Edition Professional Services. It costs more, but provides a template for law offices.
Tracking start-up costs.
Remember when you paid for office supplies, business license, business cards and stationery out of your personal account or cash in your pocket thinking you’d deal with recording and expensing it later? Did you record those expenses correctly? It is important to track out of pocket expenses. All of those are write offs. Otherwise, that’s free money you’re leaving behind!
Making routine entries into register. Reconciling.
Doing this dutifully in a bookkeeping software helps you find errors – yours or the bank’s. You’ll be able to spot deleted, missing, or duplicate entries. Do you have the time to search those out by hand? Do you know where to even start looking?
Managing your IOLTA checking account.
Your IOLTA checking account must be kept separate from your general business checking account both at the bank and in your QuickBooks to be in compliance with OSB regulations.
Contractors vs. employees.
Be sure you know the difference and are issuing 1099’s and W-2’s accordingly. No one wants an employer who can’t get accurate tax documents to them on time.
Invoicing clients in a timely and professional manner.
If you’re not invoicing, you’re not getting paid. And as time goes on and new business comes in, you’ll find it more difficult to follow up on unpaid invoices with regular statements or collections procedures.
Paying bills on time to avoid costly late fees or worse.
Keep in mind that in this present time of credit crisis, having merely one or two late payments could spell disaster. Your credit rating could plummet. Your interest rates could skyrocket. Credit cards could be cancelled. New applications for credit could be denied. And why? Because you didn’t have the money, or because you just didn’t have your stuff together to write the check, lick the stamp and pay the bill on time?
Organizing your paper flow and time. Good bookkeeping is about organization. Important financial documents are safe and easy to find. Invoices are going out. Money is coming in and getting deposited correctly. Bills are being paid on time. Checks and credit card usage are tracked and itemized. Employees and contractors are getting paid on time. All documents for tax time are calculated and ready to go. Potential creditors or partners are happy to see you’re on top of your financials. And you can spend more time doing what you do best.
About the Author: Belinda Bixby is a Certified QuickBooks Pro Advisor and owner of BJB Bookkeeping Solutions LLC, 503-332-2706
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“Taking care of your QuickBooks so you can do what you do best”
