Consistency

An in-house bookkeeper may leave for several reasons, but the most common reason is a better opportunity with another employer. Your bookkeeper is not likely to drop you for another client regardless of pay.

Focus

There's a misconception that an in-house bookkeeper will be more focused on bookkeeping duties. In most cases, in-house bookkeepers will become bogged down with other tasks within the company. This occurs slowly over time but eventually, as more and more tasks are absorbed by in-house bookkeepers. Bookkeeping duties will take a back seat leading to falling behind on reconciliations and financial reports.

Cost

Most bookkeepers will eventually be able to settle on a fixed price for services ensuring better predictability of costs.  In addition, there are quite a bit of cost savings when using an outside bookkeeper. In-house bookkeepers have the below-added costs compared to outsourced bookkeepers:

• Salary and payroll taxes

• Employee benefits

• Unemployment costs

• Recruiting, hiring, and training costs

• Paying sick and vacation time

• Staff overhead costs (rent, supplies, equipment, furniture)

Satisfaction

If you are not satisfied with your outside bookkeeper switching to another bookkeeper is a simple process. Switching to another in-house bookkeeper is a bit more complex. Switching in-house bookkeepers involves meetings with HR, performance improvement plans, and meetings with the unemployment office.

Consulting

Outsourced bookkeepers typically have experience with multiple businesses and are aware of different processes with these companies. Thus they can shed light on what they've seen work and not work. This insight and advice is invaluable and is something less likely with an in-house bookkeeper who may be capable at bookkeeping but does not have the broad knowledge that comes from working with many companies.

Conclusion

Every business is different, outsourcing your bookkeeping gives you the flexibility and control to search and pick the right bookkeeper for your business and allows you to focus on what you do best, running your business.

Read up on the risks of burnout for small business owners. Check out the services RVA Bookkeeping provides and if interested request a quote.

What do you have in place for bookkeeping right now? What has been your experience? Let me know in the comments below.

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Problem

Restaurant owners have been paying tax bills for the previous balance first instead of the current month. This has resulted in late fees if the prior balances were not cleared.

The fees then rolled over and accrued month to month with no notice,  resulting in exorbitant bills. For one restaurant, one late payment grew to a 68,000 balance.

Details

The current meals tax rate is 7.5% with a 10% penalty and another 10% penalty for each year unpaid. The new ordinance prevents the penalty from exceeding the total tax. The penalty has also changed from 10% to 2% of the total tax due or $10 whichever is greater. The ordinance comes into effect July 1, 2024.

For further details, see the link to the new ordinance below:

New Ordinance

Conclusion

This ordinance provides due relief to the restaurant industry already hard hit by COVID-19. It is unfortunate, that this was not passed earlier, however, RVA Bookkeeping thanks Richmond City Council for hearing the call and making the necessary changes.

Are you a restaurant in need of bookkeeping? Check out our services. If interested, request a quote.

Are you satisfied with the Richmond City Council's response? Let me know in the comments below.

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What is business burnout?

Business burnout is when, business owners or management experience so much stress, they begin feeling exhausted and lose interest in day to day operations, putting the business at risk. Everyone has their breaking point, but the risk remains the same. Lack of interest and exhaustion will lead to poor decision making.

Why small business owners?

Small business owners are in the perfect storm for burnout. In most cases, the business structure is not at a point of equal delegation of duties. In this case, owners end up in the trenches of day-to-day tasks on top of their tasks as owners of the business (marketing, finances, strategic planning, etc). Owners not being in the position to focus on the finances and growth of the business will surely lead to cash flow issues, adding further pressure on the owner who is already overwhelmed.

How to avoid burnout?

Reduce Exposure

Simply removing yourself from the situation, can give the presence of mind to acknowledge you are overwhelmed and come up with a plan of action.

Have Timeouts

Work into your daily schedule time to perform tasks that would take your mind off the business.

Get enough Sleep

Getting enough sleep will reduce fatigue and help you get through the day.

Exercise Regularly

Exercise provides a cognitive regeneration strategy that will allow your mind and body to recover.

Conclusion

Everyone is vulnerable to business burnout. Recognizing that you may be overwhelmed is key to prevention and will reduce the risk of business losses.

Bookkeeping is an internal function that can be outsourced to reduce the workload. Read up on why to outsource your bookkeeping. If interested, check out our services and request a quote.

What's been your experience with burnout? What do you do when overwhelmed? Let me know in the comments below.

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