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The average time a small business spends on basic accounting practices can vary significantly based on several factors, including the size and complexity of the business, the volume of transactions, the experience of the person handling the accounting, and the tools and processes used.

Here's a breakdown of what the research suggests:

  • Many small businesses can expect to spend 10-15 hours per month on basic bookkeeping.

  • If a business also handles its own billing, this could increase to up to 25 hours per month.

  • Some reports indicate that small business owners can spend up to 80 hours per year on tax preparation and bookkeeping tasks.

  • Entrepreneurs might spend over 100 hours per year just on federal taxes.

Efficiency and Experience:

Individuals with bookkeeping experience tend to be more efficient, potentially taking about 30% less time than someone with less knowledge.

Factors Increasing Time Spent:

  • Manually collecting financial documents.

  • Categorizing transactions, especially when a single deposit needs to be split into multiple accounts.

  • Dealing with disorganized records and receipts.

  • Correcting errors due to inexperience or inefficient processes.

Strategies to Reduce Time Spent:

  • Using accounting software: Automation can significantly reduce the time spent on tasks like recording transactions, invoicing, and tracking expenses. Many software options integrate with bank accounts for seamless data entry and offer features for receipt scanning and management. Popular options include QuickBooks Online, Xero, Zoho Books, and FreshBooks.

  • Organizing financial documents: Maintaining organized digital or physical records of invoices, receipts, and bank statements can save considerable time.

  • Automating accounts payable and receivable: Using software to manage invoices, payments, and reminders can streamline these processes.

Consider outsourcing bookkeeping, payroll, or tax preparation to professionals if the time commitment becomes too significant or if you lack the necessary expertise. Many find that the value of their own time spent on core business activities outweighs the cost of outsourcing these tasks. Some suggest that spending more than 3-5 hours per month on accounting might indicate it's time to consider professional help.

In conclusion, while a rough average might be around 10-15 hours per month for basic accounting, this is highly variable. Implementing efficient processes and utilizing accounting software can help small businesses minimize the time spent on these essential tasks.

Why choose Jetty Wave’s?

1. Time Savings and Focus on Core Business: Bookkeeping is time-consuming. We free up YOUR schedule to concentrate on revenue-generating activities like sales, marketing, customer service, and product development. YOU can dedicate your energy to what you do best, leaving the financial record-keeping to Jetty Wave’s.

2. Cost Efficiency: Avoid the costs associated with hiring a full-time employee, such as salary, benefits, payroll taxes, training, and office space. Choosing Jetty Wave’s services allows businesses to pay only for the specific services needed, offering flexibility, especially during fluctuating business cycles. Also giving access to technology, often utilizing advanced accounting software, saving the business the expense of purchasing and maintaining these systems.

3. Expertise and Accuracy: Access to experienced bookkeepers with up-to-date knowledge of financial regulations and best practices, ensuring accuracy and compliance. Professionals focused on bookkeeping are less likely to make errors, which can be costly for a business.

4. Improved Financial Insights and Decision-Making: We can provide detailed and accurate financial reports, giving valuable insights into the business’s performance. Accurate and organized records provide a clear understanding of the business’s financial health. Access to timely financial data enables better decision-making regarding pricing, budgeting, investments, and overall strategy. Jetty Wave's professional bookkeepers can analyze financial trends to help identify growth opportunities and potential financial risks.

5. Scalability and Flexibility: Our services can easily scale up or down as the business needs change, without the complexities of hiring or laying off staff.

In essence, choosing Jetty Wave's bookkeeping allows small business owners to offload a critical but often time-consuming and complex function to experts. This provides them with more time to grow their business, reduces costs, improves accuracy, and offers valuable financial insights for better decision-making.

Mission Statement:

To empower small businesses with accurate and timely financial information, enabling them to make informed decisions and achieve sustainable growth.

Our Company Values:

  • Honesty: We conduct all our accounting practices with the utmost integrity, ensuring accuracy and truthfulness in every financial record and report.

  • Transparency: We believe in clear and open communication. We ensure our clients understand their financial standing, processes, and any relevant information without ambiguity.

  • Community Focus: We are dedicated to serving and supporting the small businesses within our local community, understanding their unique needs and contributing to their success.

  • Ethical Practices: We adhere to the highest ethical standards in all our bookkeeping services, building trust and fostering long-term relationships with our clients.