When people and businesses are looking for bookkeeping services they tend to have two choices. They can either choose large firms or freelancers. So who is more efficient than the other when it comes to bookkeeping? It depends on the business, financial needs, and budget. However, when you ask if they are the same, it means you want to know who does better than the other or there is no difference on whatever you choose. To determine this, we need to check the roles that each of them play.
Freelancer bookkeeping.
When one hires a freelancer, the rates of the services they render may be much lower than the rest. Also, they are willing to scale down depending on the type of business they are dealing with. They customise their services for small businesses and startups.
Freelancers don't require contracts to utilise their services. This may come as an advantage to some and a disadvantage to others. The lack of contract freelancers is an attractive choice for some businesses. The choice gives a small business with irregular cash flow flexibility of getting the bookkeeper on their desired time.
Freelancers have their disadvantages as well. Some of the freelancers are self-proclaimed experts and may cause more harm to your business. This causes skepticism about them in business.
Small businesses
The businesses perform the same roles as the freelancers. Ensuring financial transaction records are made, post debits and credits, and maintain and balancing ledgers. Just like freelancers they are organised and perform their work with precision.
The advantages of these businesses are:
- They can handle more sophisticated financial needs.
- They are more stable than solo operations, which provides better continuity for businesses utilizing their services as well.
- They work based on contracts and ongoing commitments.
- Small businesses are more expensive than freelancers.
- Working based on contracts and ongoing commitments allow them to attract more stable business rather than the small businesses and startups.
To answer the question, is bookkeeping for freelancers the same as bookkeeping for small businesses? Yes, both bookkeeping for freelancers and small businesses is the same. The bookkeeping involves the same thing; financial record, balancing ledgers, and taxation, which both parties do. The only difference is the way they conduct themselves and the prices they charge for their services.
Shoebox Books encourages small businesses to do bookkeeping and tax advisory. In case you need any assistance or enquire, contact us today. We offer tax advisory and bookkeeping services at a fair rate. We will also make sure that we make a unique bookkeeping franchise for your business.
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