Outsourced bookkeeping services and introduction to the Profit First system are one of our product offerings at Exigo Business Solutions. Although we offer this combination as a package, they are two different, and important, services. You will outsource your bookkeeping to improve the service and, commonly, to benefit financially in the process. You will adopt the Profit First system to improve your cash flow management and budgeting while you realize a reliable profit from day one.
Most of the time when a business decides to outsource its bookkeeping it expects to pay less for the service. In fact, when you outsource your bookkeeping it can pay for itself. However, the way this happens is not so much from savings on getting the service done but in benefits from better and more insightful reports, better management of cash flow and introduction of effective business management tools like Profit First.
Profit First is a more effective way to look at how income, expenses and cash flow relate to each other. The generally accepted way to do your bookkeeping says that you take income, take away expenses, and are left with profit. However, not all expenses need to be paid at once if you look closely at how you manage cash flow. The Profit First system says that you start with income and take away profit. Then you are left with expenses. This system does two things for you. First of all, it gives you a profit with each pay cycle as soon as you start using it. Then it helps you more-effectively manage cash flow and budgeting. Third, it helps you spot hidden business costs and deal with them so that your profits grow over time.
At Exigo Business Solutions in the Kansas City area, we offer a range of outsourced bookkeeping services. You will pay for the services that you need. Our services include Receipt Bank transaction coding, Monthly QBO file review, monthly account reconciliation, both basic and advanced financial reports as needed, and a financial video review. If you need the level of services offered by a chief financial officer, we provide virtual CFO services as well.
Basic financial reports range from $675 to $1375 based on the size of your business and amount of work needed to do the reports. Advanced reports range from $2,875 to $4,750. Your cost for outsourced bookkeeping services plus instituting and maintaining the Profit First system will run to $16,740 a year. This comes to 6% of your revenue for a company with a $280,000-a-year revenue stream and 2% of your revenue for a company with an $837,000 yearly revenue stream.
If you have looked into Profit First, you know that part of the setup is opening separate bank accounts for profit, owner’s pay, and other categories. The usual setup for the first five accounts is as follows:
• Owner’s Pay
• Operating Expenses
Part of your initial work setting up for Profit First will be to find a bank that does not charge minimum balance fees and is happy to have you set up several accounts. Part of what we do to help you with this system is to direct you to the right banks.
To learn more about how outsourcing your bookkeeping and adding the Profit First system will help your business, contact us at Exigo Business Solutions.