Potential benefits of White Label Bookkeeping

Before getting to the benefits of white-label bookkeeping, one might wonder about the meaning of bookkeeping. Bookkeeping, in the traditional sense, refers to the act of identifying and recording the financial transactions of a client or business. Large CPA firms usually hire bookkeepers to help ease the burden off the accountants.

What is White Label Bookkeeping?

White-label bookkeeping involves outsourcing bookkeeping services from an established firm. In fact, white labeling of a wide range of services and products is possible where a third party rebrands the authentic product or utilizes the service at a rate much less than doing it in-house. CPAs usually engage in white-label bookkeeping, as the process of outsourcing a field expert is far more advantageous than hiring a trainee employee, or a contracted employee. The field expert usually maintains transaction data, income reports, and financial information.

Outsourcing bookkeeping services usually prove to be the best for small and large CPA firms with limited time and resources.

Benefits of White Label Bookkeeping

White labeling of products or services usually proves far more advantageous than the hiring of contractors and freelancers. White labeling usually involves much less fee or production cost than in-house rates. Similarly, white-label bookkeeping also has a few potential benefits discussed below,

  • Increased revenue stream- Outsourcing bookkeeping services at affordable and reasonable rates will allow the cost-cutting of hiring an employee that needs to be trained. Along with that, a reduction in tax bills and retention of office supplies will facilitate efficiency in revenue. The production of bookkeeping services in CPA firms will also attract potential clients. It will all lead to an increased revenue stream without adding significant overhead.
  • Productivity Boost– With the engagement of white-label bookkeeping services, there will be time for the training of the in-house employees and the betterment of services in CPA firms. A shift in the workload of bookkeeping to a third party will also make time for the prioritizing of the internal productivity of corporations.
  • Professional Team– Having outsourced bookkeeping services would mean the temporary employment of experts in the services of bookkeeping. The experts pay attention to accuracy and would be a lot more professional than hiring minimum-wage trainees.
  • Professional Advancement– Outsourcing bookkeeping services is time-efficient. The time can be focused and invested into bigger goals and future plans like the expansion of the business or focus on the refitment of other skills.
  • Efficient Performance– Accountants in firms are occupied and don’t always have time for minor revisions and updates of audits. The white-label bookkeeping services, on the other hand, provide much more efficient performance in the recording of financial transactions. Bookkeepers work accurately and efficiently, whilst being aware of all updates.

With all these benefits in mind, it is crucial to note that it is not necessary for all the activities to be carried out within the same organization. It is a smart decision for large or small accountant firms to outsource bookkeeping services from third parties.

Contact us today for more on how we can provide efficient white-labelled bookkeeping services.

How Quickly Do Customers Pay You?

Most businesses are not able to get payment for their services in due time. It can be time consuming and difficult to improve your collection process – read further to understand on how you can find the solution for this problem.

How Quickly customers pay you indicates the length of your accounts receivables cycle also know as Accounts Receivable (AR) Turnover Ratio, which begins when a customer buys your product and ends when they eventually pay you. The collection procedure includes everything that takes place in between.

One way to maintain your business is by maintaining accounts receivable turnover ratio. The accounts receivable turnover ratio of a business organization can be maintained by improving the overall collection process.

What is Cash Flow?

Cash Flow is the amount of money that moves from and to your businesses every month. Any business organization should be aware of its cash flow. Cash Flow statements are very crucial as they detail the financial transactions such as operating activities, and investing activities. These details are important because one must at all times know the cash flow inside and outside of the business organization. For a business to remain sustainable and avoid bankruptcy, having cash on hand is a fundamental requirement.

What are the reasons for the late payments to businesses?

  • Industry– Regardless of transaction values, the collection value depends on the industry type. For example, financial services firms collect their payments fastest.
  • Type of Client– The reason for the variation in collection time does not only depend on the industry offering services but also on the customer availing of the services. These customers come from different sectors and are not always able to complete financial transactions on time.
  • Mode of Payment– There are primarily two methods of payment, which are push-based and pull-based methods. A push payment is the type of payment where the customer initiates the transfer of funds to the recipient. As a result, the payer determines the payment’s total and final destination. A pull payment (commonly known as auto pay), on the other hand, is a payment mechanism where the payee gives the payer instructions (ex credit card information or bank information (ACH)) to pull the funds on due date. Hence, one of the reasons for the late payments to businesses might be the payment methods, or essentially who controls the funds.

Strategies To Recover Payments Faster

Any business organization expects a timely payment from their customers, be it a large or small business, whilst delivering their products or services. However, customers tend to push the transactions of payments. There is a solution to it. Agencies nowadays are employing certain methods for faster payment. Some of them are as follows,

  • Right Payment Solution– As the speed of the transaction depends on the payment method, agencies find it wise to employ the right payment solution and launch structured strategies for that.
  • Organization– The organization of teams, and the coordination between different departments would allow the speeding of the whole process right from the start to the end of a transaction.
  • End-to-End Visibility– With a complete overview of all of your invoices and the status of their payments in one location, an agency can take quick action to resolve supplier inquiries and enhance your cash management and cash forecasting.

Contact us today for more on how we can help you collect payments faster & manage your cashflow.

Benefits of management information system – MIS

The Management information system is a crucial for making business decisions to stay competitive in current market dynamics.

What is a Management Information System (or MIS)?

Management Information System is the discipline involving people, financial and resource data resulting in the mapping of information for efficient management of any business organization. The discipline of MIS is important for managing business problems and opportunities. In layman’s terms, Management Information Systems is the process of delivering and mapping the right information in the correct form at the right place and time. MIS is as crucial to the smooth working of a small-scale business as it is to a large corporation.

Process of Management Information System

The process of management information can be simply understood through the following steps,

  • Recognition of a Business Problem or Opportunity– Firstly, MIS begins with the primitive step of the organization of data to recognize the problem or business opportunity.
  • Defining the problem– The second step involves a clear definition of the problem.
  • Choosing the alternative course of action– After recognizing the business problem or opportunity, the next step in MIS is choosing the best alternative course of action.
  • Final decision– The next step includes taking a final call on the best alternative route.
  • Implementation of Plan– MIS then includes the implementation of a clear business strategy.
  • Control Performance– After the implementation of the plan, the final step is to monitor the performance.

Benefits of Management Information System

The advantages of a management information system within an organisation are defined below,

Organisation– MIS allows data mapping and organisation of all kinds of records such as business trends, employee timesheets, finance and payroll, records. The structured database proves efficient and saves time. In this way, all the relevant data is also filtered out.

Productivity– With organized data, and future-oriented strategic planning; the productivity of business increases.

Trends– Data mapping and management help in the study of business trends as well. The business goals of an organization are set based on existing trends and future forecasts.

Streamlining of Operations– With organized data and strategic planning, all departments in a business organization coordinate better. The operations of a business are defined and also are crucial in increasing efficiency.

Planning– The data is managed with the goal of identifying business opportunities and problems. Identification of further opportunities helps in planning future-oriented business objectives.

Comparative Study– The organization of the data also leads to the management of business growth and performance. In this way, a comparative study can be done for annual performances.

Management information systems provide several advantages and opportunities that prove to be especially useful in business. As a consequence of using management information system, the decision-making of business organizations becomes more effective and efficient. However, every component of the MIS is crucial to its productivity. Reliable people must be involved in the data sorting and application of computer programs.

Contact us today for more on how we can help you implement MIS Reporting & Benchmarking.