Bench vs Bookkeeper com Comparison

Posted by on July 20, 2020 in Blog

Bench vs. a Traditional Bookkeeper

In fact, you only need your balance sheet, or your profit and loss statement to show you how strong your business is financially. With this in mind, you’ll be able to plan better and decide what expenses you can afford. One of the most important reasons why proper bookkeeping is important is that it allows you to budget. A budget helps you to create a financial roadmap for your business and with this map, you can plan for future expenses and anticipated income. So, when your income and expenses are correctly organized, it simply makes it easier to review your financial position and budget properly. There are a few types of businesses that aren’t a good match for Bench, though.

Before looking at what Bench is, and how it works, let’s briefly take a look at why bookkeeping is important for you as a freelancer or small business. Plus, you can communicate with them through the Bench app, so they’re always there if you need advice or have questions. The DIY route also makes sense if you have some background in business bookkeeping, and there’s space in your schedule to make bookkeeping a regular task. This provides a summary of your assets, liabilities, and equity at a given point in time. This report shows the areas of your business where you spend the most money.

Bookkeeping vs Accounting: What’s The Difference?

As your transactions are automatically imported, your Accracy team categorizes them for you. As your transactions are automatically imported, your Bench team categorizes them for you. The accounting process is more subjective than bookkeeping, which is largely transactional. Bookkeeping is the process of recording daily transactions in a consistent way, and is a key component to gathering the financial information needed to run a successful business.

  • The more time your team spends working with you, the better they’ll know your books—and the less often they’ll need to get in touch.
  • Bench is a good choice if you’re upgrading from DIY bookkeeping, but your business isn’t big enough to bring on a full-time bookkeeper.
  • There are critical differences in job growth and salaries between the two.
  • We’ve listed some of the key differences when it comes to the requirements and job market for each.
  • In the event that you make a cash transaction, you can take a photo of the receipt with your phone and upload it to the Bench platform.
  • Prices range from $399 to $799 monthly, plus the option of customizing a package that suits your needs.

If your business depends on accrual basis accounting or has over $5 million annually in revenue, you might be better off hiring a bookkeeper as an employee. As your business becomes larger and more complex, however, you’ll find the time you spend bookkeeping begins to pile up. Taking into account the value of your own work hours, you’ll know when it’s time to move to professional help. Doing your own books comes with some great benefits if you are a disciplined person who can stay on top of it. You’ll know your own finances inside out, and if you do hand off the books to a pro at a later date, you’ll get more value out of the financial statements they provide you. Pricing

Bookkeeper360 has upfront pricing on bookkeeping packages for companies with less than $100,000. The ultimate cost of your bundle depends on your level of expenses, whether you require accrual versus cash accounting, and whether you want monthly, weekly, or pay-as-you-go service. While Bookkeeper360 doesn’t provide a free trial, it does offer month-to-month pricing without entering a long-term contract. Users commented on Bookkeeper360’s quality of service and responsiveness, how easily the software integrates with QuickBooks Online and Xero, and the ability to collaborate with a team of professionals.

Accracy provides you with a Year End Financial Package containing a summary of your finances for the year. And, similar to a freelance bookkeeper, your Accracy team will work with you to get to know your business. If they’re not sure how a specific transaction should be categorized, they’ll message you. When you use Accracy, it’s almost as if you were working remotely with a freelance bookkeeper. Except you have an entire team at your disposal, so you don’t need to worry about sudden leaves of absence.

Bench vs. a Traditional Bookkeeper: Which Is Right for You?

Accounting turns the information from the general ledger into insights that reveal the bigger picture of the business, and the path the company is progressing on. Business owners will often look to accountants for help with strategic what is virtual bookkeeping tax planning, analysing their financial position, forecasting, and tax filing. Bench offers straightforward bookkeeping and tax services―along with a mobile app―and an option to add services, such as catch-up bookkeeping.

It is not an unusual career move for a bookkeeper to gain experience at a job, study, get certified, and work as an accountant. There are critical differences in job growth and salaries between the two. Growth for accountants and auditors is expected to continue for the next several years. The Bureau of Labor Statistics (BLS) expects 6% job growth in this field from 2021 to 2031. Bookkeepers are commonly responsible for recording journal entries and conducting bank reconciliations.

Thankfully Xero has cash coding, which allows us to enter transactions in bulk- saving us time and effort. Bench is a proprietary accounting software that does not provide an export that is compatible with major accounting software (Intuit or Xero). Furthermore, if you want to track your budget, and drill down to see profitability by job or customer, you won’t be able to do this in Bench. Essentially, financials drafted by Bench are good to send to your CPA at the end of the year to prep your taxes. You may need to provide additional detail to your CPA, but they will be good conversation starters.