Consumer Awareness Guide To Hiring An Outsourced Bookkeeper

Consumer Awareness Guide To Choosing An Honest, Reliable, and Competent Outsourced Bookkeeper Don’t Trust Your Bookkeeping or Accounting Data To Just Anyone! Hiring the wrong bookkeeper can not only be incredibly frustrating and expensive, but you could end up making decisions based on incorrect information, sharing confidential information with an untrustworthy source, or even worse, being robbed! Read this guide and you’ll discover: ü 5 Costly misconceptions about outsourced bookkeepers. ü 5 Critical characteristics you should demand from your bookkeeper. ü 18 Questions you need to ask before hiring a bookkeeper. ü Your Customer Bill of Rights ü 5 Reasons you should stop doing bookkeeping in house Provided as an educational service by: Michael S. Pruet, CPA QB Pro Advisor, QB Enterprise Solution Provider, QB POS Pro Advisor

WAC Solution Partners 3100 Lorna Road Suite 300 Birmingham, AL 35216 Voice 205-314-3445 Fax 205-413-8771 www.10minutebookkeeping.com

© WAC Solution Partners – ALL RIGHTS RESERVED www.10minutebookkeeping.com

From The Desk of: Michael S. Pruet, CPA Partner, WAC Solution Partners Dear Fellow Business Manager, There are no shortages of horror stories about fly-by-night bookkeepers causing problems as a result of their unethical or incompetent behavior. I’m sure if you talk to your own friends and family you will get an ear-full of the unfortunate experiences they have encountered in this area. You see, the bookkeeping industry, along with a lot of other industries, has its own share of unethical businesses who will always try to take advantage of uneducated buyers in their greed for easy money. Fortunately, businesses like these are the minority, but we know they exist because we have had a number of customers come to us to clean up the disasters they have caused. Anyone who can buy QuickBooks can market themselves as a bookkeeper or bookkeeping firm. Even if they are honestly trying to do a good job for you, their inexperience can cost you dearly in relying on old or incorrect data. That is why we decided to offer this report. The information in this Guide is provided to help raise your standards when hiring a bookkeeper, and to give YOU useful information to help you guard against the unethical or incompetence of some companies and bookkeepers.

The Five Most Costly Misconceptions About Bookkeeping #1 Professional Outsourced Bookkeeping is more expensive The old adage "Time is Money" seems perfectly apt for most, however, when it comes to managing their own companies, it is surprising how many business owners do not take this concept to heart. Many owners do not put a realistic dollar value on their time. Like money, time is finite and how you spend your time directly influences whether or not you will reach your goals. Are you doing a juggling act for your company and donning multiple hats? As an office worker or even doing the role of a marketing person and a salesperson, probably even a bookkeeper/accountant? Multi-tasking in this manner takes you away from focusing on your core business. Eventually as you are pulled in all directions, you lose focus and your company hits a major stumbling block. It does not make sense to spend your time doing tasks that can be outsourced at a lower cost (vs. your hourly cost) to someone who is trained in bookkeeping, accounting and tax. The common myth "doing the


books myself keeps me closer to the numbers," actually results in the opposite. Because you are too close to the numbers, you lose objectivity and probably will not take the time to really review the reports and catch any mistakes. Despite the risks involved, many businesspeople continue to use inexperienced or untrained bookkeepers in an effort to save money. What they are actually doing is practicing false economics, i.e. taking money-saving measures that actually cause loss in the end. Or, looking at it another way, we can say that these people have not taken into account their opportunity costs. At first glance, it may look as if doing one’s own bookkeeping instead of paying somebody else to do it would save money and therefore increase profit. However, bookkeeping is no easy task. It can swallow up astonishing amounts of time, especially if the bookkeeper has not been specially trained. This time could have been used to make more money for the company, and very likely the money one has lost the opportunity to make far exceeds the amount the entrepreneur “saved” in not getting an outsourced bookkeeper. #2 Lose of Control Some companies may view outsourcing as “giving up control” of a vital part of the business. In fact, it is really a way to gain control by managing the day-to-day operations of the organization and paying someone else to report the numbers. More and more companies are recognizing the need to stay focused on what they do best – their core competency or process. To grow your company means keeping up with what is going on in the organization with the clients, customers, and staff. Outsourcing bookkeeping means one less internal function that takes time and resources away from what really determines a company’s success. #3 My wife/niece/sister-in-law knows this bookkeeping stuff and can solve my problems. If only this were true. Obviously, not all bookkeepers are created equal. Just because a person is good with numbers, office work, payroll or is organized, does NOT mean that they know how to properly book, categorize, accrue and report accurate financial information or explain cash flow and projections. Most people look for a part time “guru” to help them save money, but this often comes back to haunt them. Every day we get new customers who walk into our firm needing us to clean up a mess that was caused by an inexperienced neighbor, friend, or relative who was just trying to help. If the person you have working on your books does not do bookkeeping, training and support for a living, there is a good chance they won’t have the knowledge or experience to truly help you. If your bookkeeper is not working on multiple sets of books every day, they probably only know enough to be dangerous.


#4: All CPA firms or Bookkeeping Firms are created equal. Your best option will be the one who offers the lowest price. As we stated a moment ago, you get what you pay for. A cheap price usually means a cheap job. Really good bookkeepers do NOT work cheap because they are in high demand. The only bookkeepers that will work cheap are those that are just starting and they are grossly inexperienced. With your valuable data, Accounts Receivable Aging, Check Register, Profit and Loss Statements, Cash Flow Forecasts and the life blood of your business at stake, do you REALLY want the cheapest bookkeeper working on your books? We take the view that most people want value for money and simply want the job done right. You will find that we are not the cheapest and we do not apologize for that. You will also find that we are not the most expensive. We simply feel that we should offer a good service at a fair price. That’s why we have been able to stay in business for over 10 solid years. #5 The Bookkeeper needs to be on-site at the clients premises. With today’s technology, the bookkeeper no longer needs to show up once a week or once a month or once a quarter. (Or worse once per year) As a business owner, you need accurate and timely information so that you can make the best decisions. If you are only seeing the “score” in periodic increments, they are no longer useful. Today’s bookkeeper can access your books from any internet connection using the same technology and security that your bank uses. So why not get your books updated just like a Fortune 500 company – everyday. #6 BONUS – The bookkeeper just gives me historical information and doesn’t tell me anything that I don’t already know. If the books are being accounted for everyday, your attitude just might change. You manage your business based on the numbers, but if your numbers are old and stale, you stop caring what they are. If your books are real-time, and updated every day, you can now use them as a proactive management tool. How much cash do I have on hand? Who owes me money? When will I receive it? Who are my most profitable customers? The best bookkeepers can report profit, accurate cash, cash flow forecasts, alerts, Key Performance Indicators, and dashboards. Our service also allows you to have more than a bookkeeper. We can also add a CFO or Professional Controller as part of the management team.


5 Critical Characteristics You Should Demand From Your Bookkeeper 1. Demand someone who has a long-standing reputation. Let’s face it; there are a lot of bookkeepers out there, but most are new or just getting started. You want to make sure you avoid hiring a fly-by-night bookkeeper between jobs that sets up shop one day, and is out of business within a month or a year. Only deal with bookkeepers and bookkeeping firms that have a proven track record in your area. 2. Demand that they have multiple data entry, bookkeepers, and accountants on staff. If you rely on a “one-man-band” operation, you might find yourself without any help when they go on vacation, get sick, or when they are simply too busy servicing other customers (like tax season). Having multiple bookkeepers on staff is not a guarantee of fast, reliable service, but you are far more likely to have someone to talk to when you have a problem. Another reason you want a firm that has multiple bookkeepers is because no one bookkeeper/accountant – no matter how good – has infinite knowledge about every GAAP, accrual, depreciation, tax law, or entry management process. Multiple bookkeepers/accountants mean multiple skill sets and a higher likelihood that your problem and opportunities will get solved faster. 3. Demand that they have specific knowledge or expertise in your type of business or on solving your particular problem. Do NOT let someone practice on your books. If they have not worked on your problem before, they should TELL you that in advance. There is too much risk involved financially. 4. Demand that your bookkeeper is Certified. A professional bookkeeper who is certified in your accounting software means that they have met certain standards and criteria in proving that they have more than casual knowledge of the software. It also helps curtail the bookkeeper from learning on your dime. Every bookkeeper may not know every answer, but hiring one that has passed standardized testing on the software can eliminate most common mistakes and data entry errors. 5. Demand that your bookkeeping firm offers a guarantee. The bookkeeping services industry is cluttered with claims of excellence and assertions of quality ("we deliver the best service" or "we employ the best people" are popular ones that are commonly used). While these claims and assertions may certainly be true, how do you know before you lay your money on the table that these companies will actually deliver what they promise? You don't. What these companies are essentially saying


are: "we are committed to delivering you the best services with the best people, but if we fail to please you, we expect to be paid anyway!”

How Does Your Current Bookkeeper Stack Up? How can you tell if you are receiving poor or substandard service? How do you know if your bookkeeper is doing everything possible to make sure that you are receiving accurate and timely information? Could your current bookkeeper actually be jeopardizing your cash flow? If your Bookkeeper does not score a “yes” on every point, you could be paying for substandard work.

□ Are they real time, keying in transactions every day, so that you have real time numbers to manage your business with? □ Can you communicate with them 24/7 without taking time away from working ON the business instead of IN the business? □ Do they offer a monitoring system to watch over your financial data alerting you of profitability, cash flow and management exceptions? □ Do they proactively offer new ways to improve your company’s financial performance, or do they wait until there is a problem to make recommendations? □ Do they provide fixed fee invoicing with no hidden costs? □ Are you able to look at your cash, customer balances or inventory in real time from any computer in the world with internet access? □ Does your bookkeeper have a system that lets your office become a paperless office? □ Does your bookkeeper document all of your transactions, essentially creating a “how you do it” help file, to standardize your process, so you do not have to continue to remind them “how you do it”? □ Do they answer questions in terms that you understand? □ Do they complete transactions by 5 o’clock the next business day, or just once a month or once per quarter? □ Do they offer “100% Unconditional Guarantees” on their services? □ Do they have other bookkeepers that are familiar with your books in case your regular bookkeeper goes on vacation, gets sick or quits? □ Does your bookkeeper maintain current QuickBooks Pro Advisor certifications and participate in on-going training?


□ Are they adamant about backing up your accounting data and having a disaster recovery plan in place? □ Do they offer to meet with you regularly to review your business plans, your financial status, and their own performance in supporting your company? □ Do they guarantee that you will always be on the most current and up to date version of QuickBooks, all of the time? □ Do they offer unlimited QuickBooks help and technical support?

Your Customer Bill Of Rights Here is what I promise to deliver if you choose WAC Solution Partners to keep your books: You have the Right to: 1. Accurate books and accounting records. You are trying to make a profit & manage your business. While you love what you do (most days), you are still there to make money. If your books are inaccurate, how can you make good decisions? 2. Timely books and accounting records. So now that your books are accurate, if you don’t see them until the end of year or end of the month, how can you make good decisions? You need to know now where you stand on cash flow & profitability. 3. A fixed monthly fee. Even though you are outsourcing, look at us as your accounting department down the hall. You still need the job done at a fixed fee. We save most of our clients between 30 – 50% over their current bookkeeper. 4. Qualified and Certified bookkeepers. All of our bookkeepers are QuickBooks Pro Certified. They go through bookkeeping training and testing. Some have additional certifications including Advanced QuickBooks Pro Certified, Sleeter Group Certified, and some are CPA’s. 5. Access to information whenever you want it. Why should you still be tethered to your office desk? We are in a global marketplace. Whether you work from the office, home, or on vacation you will have 24/7/365 access to your books, reports, cash flow, profitability, collections, and payables. 6. No employee complaints or sick days. No paying for breaks and never having to interview or fire again. 7. A Paperless Office The next time you want to see a bill, you are now 3 clicks away from viewing it. Never loose a piece of paper again. It cost $1.04 to file a piece of paper and $125 in lost productivity to find it.


8. Unlimited QuickBooks Support. If you just have a quick question, why do you need to pay high fees? Just use our automated work flow system, or pick up the phone. No additional fees and no billing by the hour. 9. A nightly, offsite backup. Relax, worry free. If you are like most business owners, you’re probably too busy dealing with the “crisis” of the day to think about daily data backups. If your data gets fried, you might be in a lot of trouble. We take care of that for you. 10. A 100% Unconditional Guarantee If, despite all the work we've done and despite following our advice, you're not completely satisfied, we'll refund your last month’s service fees, give you all of your records, documents and QuickBooks file back on a CD, and treat you to a dinner for two as our way of saying no hard feelings.

5 Reasons you should stop doing bookkeeping in house 1. 2. 3. 4. 5.

Cut Costs Eliminate Drama Obtain Quality numbers Receive our guardian angel service Spend time and money on Sales NOT details.

A large proportion of our business comes from referrals from happy, satisfied customers. We want you to recommend us and we know that you will only do this if you are happy with the services we provide. That is why we work so hard to go above and beyond the call of duty.

Don’t Take Our Word For It; Just Listen To What Our Customers Have To Say… “WAC Solution Partners has done an excellent job of lifting a huge burden off my shoulders. I get real time data that helps me know where my business stands each day, which allows me to be proactive instead of reactive.” “Anywhere I travel I can have access to my company’s information. The process is so simple it helps me manage my business better. The WAC Staff handles any issues that I may have in a quick and timely manner. I specifically liked the one on one attention that I received during the transitions over to the 10 Minute Bookkeeping System. In my fast paced business, WAC has enabled me to know when my property accounts are delinquent, which has saved me thousands of dollars. My investment in this service paid for itself in just the timeliness of the bank reconciliation process. I am able to spot discrepancies that I was unable to see before.” Don Lathem, Champion Properties © WAC Solution Partners – ALL RIGHTS RESERVED www.10minutebookkeeping.com

"The first meeting with Michael was great. All I had to do was answer a few questions and then he suggested a service level that has accommodated us flawlessly. He is good at what he does, knows his business, and it shows. At this point, I am pleased with all aspects of his service. I look forward to a continued relationship. I would recommend WAC Solution Partners to anyone." Patrick Dent, Rotor Wing “I used to bring lunch to visit with my CPA at tax time because I knew I would be there all day. Now with the reports I receive, it was a one hour meeting. No more hassle, I spent less time, and received a smaller bill. Matt Denard. Millennium Satellite & Video “Their work is impeccable! I get a full staff of bookkeepers, accountants and CPA’s for a fixed monthly fee. All of our books are closed every day. We now get actionable accurate numbers AND I don’t worry about the drama of extra employees. THANK YOU!” Dr. Tom Spurlock, President, Alabama Pain Consultants

Services We Offer Using our 10 Minute Bookkeeping System, we offer real-time, virtual, paperless, outsourced bookkeeping in a variety of packages. · Starter Package · Bookkeeper Package · Accountant Package · Controller Package · CFO Package · Board Package We also offer a wide range of training, consulting, support, help, assistance, and classes on all versions of QuickBooks. · One on one training · Class room training · Support plans · QuickBooks 47 Point Checkup · Quick Books Company Setup · QB Payroll Setup · QB Inventory Setup · QB Job Cost Setup · Custom Report Writing · Key Performance Analysis · Dashboard Creation
