About Bench Accounting

We tried in December they said we had to have done it by November and now we must use their horrible services for a second year in a row after trying to cancel. We want to hire our own personal bookkeeper who we choose going forward but we’ve been stuck with them and their $300 a month fee. Consequently, many business owners and professionals have quickly adapted to the changing world and utilize a variety of services. More and more entrepreneurs are using Bench in tandem with their CPAs to get the best of both worlds—while keeping it as pocket-friendly as possible. The numerous choices in outsourcing accounting services may be overwhelming to new entrepreneurs. Similar to running a business, there is no universally sound option.

You’ll receive unlimited support from real humans, allowing you to take the guesswork out of running your business. Our mission is to help every business owner thrive, by providing financial insight and peace of mind in one seamless platform. Hiring a traditional bookkeeper is a good choice if your business demands a lot of paper records—physical receipts and work orders, for instance. In that case, you’ll want to find a local bookkeeper who can physically meet with you and go over your records. The more complex your business is—the more transactions and categories it uses—the longer it will take for your bookkeeper to do their job. A traditional bookkeeper handles all of your bookkeeping for you.

BenchTax will take over your entire filing process from start to finish, which should save you a great deal of time and energy. If you’re using anyone other than Bench to manage your books, you can still avail of its tax services. However, you’ll have to give Bench one month’s worth of filing history to ensure your books are up to date. Bench’s online platform does a good job of labeling and categorizing transitions so that you can find things quicker. There’s a degree of human error involved in this process, and sometimes your bookkeeper will mislabel transactions.

  • Companies can ask for reviews via automatic invitations.
  • Our highly-trained bookkeepers are committed to quality.
  • These reports can help you understand your expenses better (where your money is going), and other financial trends to help you run your business more effectively.
  • It’s not cheap, but at the end of the day, I’m not worried about the state of my books, and tax season was a breeze.

In contrast, a sole proprietorship’s income is subject to self-employment tax in addition to income tax. However, S corps face scrutiny over reasonable compensation to shareholders-employees, impacting how much income can be classified https://personal-accounting.org/accounting-articles/ as dividends (subject to lower tax rates) versus salary. Your bookkeeper then organizes each transaction appropriately. If they have questions, they message you and provide you with an easy way to acknowledge any unknown transactions.

Simple, straightforward pricing for everything your business needs.

And the Bench app lets you quickly send messages and upload files if you’re on the go and don’t want to have a phone call. Bench gives you a team of bookkeepers who handle your bookkeeping for you, and an intuitive app to track your finances. Bench is a good choice for a small businesses whose annual revenue is below seven figures. At the end of the financial year, your bookkeeper should be able to provide you with an info package summarizing all your business’s financial activities for the year. When you deliver this package to an accountant, they can use it to file your taxes.

  • And, similar to a freelance bookkeeper, your Bench team will work with you to get to know your business.
  • Through the development of financial technology and a unique business model, Bench has become highly effective at managing monthly cash basis accounting.
  • Use Nav to find the right accounting solution for your business.
  • Once you sign up with Bench, you get a dedicated team of financial experts, including bookkeepers who handle your day-to-day bookkeeping tasks.
  • The Premium plan fulfills your bookkeeping needs and also provides help with your taxes.

Occasionally your bookkeeper might need your input on things like categorizing a transaction properly, but we try our best to make bookkeeping as hands-off as possible for you. Consistent check-insWe’ll reach out regularly with bookkeeping updates. We’ll get back to you in one business day or less.Easy to schedule review callsBook a call with your bookkeeper directly through the Bench platform.

Is Bench Considered an Accounting or Bookkeeping Service?

For instance, shareholders who work in the company must receive reasonable compensation, which requires payroll setup and tax withholdings. Benefits provided to employee-shareholders with more than 2% shares in the corporation are treated differently for tax purposes. The shift also involves adhering to more rigorous employment laws and potentially more complex employee benefits administration.

Specialized bookkeeping

You can also book a call with your bookkeeper (or send them a message) whenever you’d like. There’s no extra fee or hourly charges for support—we’re always happy to nerd out about bookkeeping and your financial statements. Your team of bookkeeping experts review your transactions and prepare financial statements every month. DIY accounting software is a fine place to start if you’re just getting your business off the ground and need a quick and dirty solution. It will give you the tools you need to track money entering and leaving your business, and keep records. We provide our clients with a modified form of cash basis bookkeeping.

Working with your Bench bookkeeper

Business owners should budget for these expenses and weigh them against the potential tax and liability benefits. An S corporation’s main tax advantage is the ability to pass profits and losses directly to shareholders, avoiding double taxation. For example, if an S corp earns $100,000 in profits, this income is reported on the shareholders’ personal tax returns, taxed at their individual tax rates.

The process involves drafting corporate bylaws, issuing stock certificates to shareholders, and setting up a board of directors. The timeline can vary, but the entire process typically takes several weeks to a few months, depending on the complexity and the state’s processing times. At the end of the year, you’ll be provided with a year-end financial statement. You can hand this off to your CPA if you don’t want Bench to file your taxes for you (which costs extra). The main difference between Bench and traditional accounting software is that Bench isn’t DIY.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs. After you sign up to Bench, a dedicated member of our team will assist you in connecting all your financial accounts securely to our platform. This enables you and your bookkeeper to work together seamlessly from the start.

Upgrade your plan, and cross even more off your to-do list. With Premium, you get expert tax prep, filing, and year-round tax advisory support. Easily see your updated financial data every time you log in. With real-time insights, you can make on-the-fly decisions about where to spend and where to save, helping your business stay on budget.

Get intuitive software that syncs directly with your small business accounts to deliver tidy, perfect books each month. If you’ve been falling behind on your bookkeeping, we can get you caught up. No matter how far behind you are, for an additional fee we can bring your books up to date, fast—one of the perks of having a big team of experienced bookkeepers who work together. In the old days, the only option was to hire a freelance bookkeeper or traditional bookkeeping firm. But now, with the advent of virtual bookkeeping solutions like Bench, you’ve got a few different options. You could be designing logos, selling novelty underpants online, or putting vegan meal plans together.

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