7 Reasons to Outsource Your Bookkeeping to Affine Finance

It’s no surprise that most business owners work many overtime hours - juggling all the aspects of managing your business. With all the customers to manage, supplies to order, and meetings to handle, one thing that you cannot afford to lose track of is the accounting and bookkeeping. Yet does it make sense to hire an employee full-time? You may only need the occasional help a few days a month or quarter. Thankfully, the option to outsource your booking exists, and here are 7 reasons why you should:


1. Tremendous time savings.

This is one of the most recognizable important benefits. Freeing up yourself from the many tasks of bookkeeping and financial management lets you focus on many other important parts of your business that require your attention. You’ll have one less thing to worry about and much less stress at the end of the day.


2. Your books will always be ready-to-go for tax season.


With a dedicated bookkeeper, you’ll always have everything in line to be filed when the time comes. Gone are the days of scrambling to get everything in order, figuring out inaccuracies, or backtracking at the last minute.


3. Pay and get paid promptly.

With so many different ways income and expenses come in and out, it’s easy to lose track or miss something. The last thing you’d want is to miss a payment to your supplier or to send out an invoice to a customer. With a dedicated bookkeeper, nothing falls behind.


4. Thorough planning and analysis.

Having a bookkeeper means that you would have the ability to project your financial health given your current business and make better decisions for the future.


5. Significant savings compared to hiring a full-time employee.

As previously mentioned, hiring a full-time employee might not be practical, especially because of the costs associated with having and additional person on-board. Additional employees can require health insurance and other benefits, as well as take up office tools, space, and supplies. This also doesn’t include the additional task of staying on top of employment laws. An outsourced bookkeeper is an independent all-in-one package that you can expect to be hassle-free.


6. Consistent work and availability.

Unlike a full-time employee, outsourcing your bookkeeping means that you’ll always have someone to address your financials at your disposal, regardless if they’re on vacation or can’t make it into the office.


7. Be at rest knowing that you have dedicated professional on your side that will get things right.

If you have only a little accounting experience or aren’t an expert, it’s likely that you would find yourself making mistakes or wasting effort on keeping your books in line. Get it right the first time and outsource your bookkeeping.


Contact Affine Finance today for a free consultation!

The New Tax Bill Just Killed the Individual Health Insurance Mandate - Our Thoughts

First, a little background:

A large proponent (and probably the reason why such a fuss was made) of the Affordable Care Act was its provision to make health insurance mandatory. Under the law, those caught without insurance were forced to pay a tax of either a flat fee or a percentage of household income -- whichever was greater. The fine worked; insurance companies had record surges in enrollment plans after the ACA was signed into effect.

The reason for health insurance is so that buyers can forgo paying exorbitant out-of-pocket costs whenever they visit a medical facility. Obviously, it's likely that older folks need health insurance much more -- since they're likely to fall ill or have some operation. Still, buying and using the insurance policy requires money, and it's this cost that’s seen so much debate over the last decade.

One of the major provisions of the current tax bill repeals this individual mandate. Without some sort of incentive to keep young, healthy customers in the insurance market, they'll leave -- lowering enrollment.


Here's where Economics 101 comes into play:

The goals of changing health insurance policy seem to differ between the two political parties, but because a large portion of stated claims against this mandate revolves around "rising premiums," we'll assume that to be our goal in mind:

So, does repealing the mandate increase premiums?

Well, the short answer is yes. And the long answer requires a little digging into economics.

We've already established that repealing the mandate destroys the incentive that keep young, healthy people in the insurance market. This pushes them out and leaves the majority of insurance candidates to be those that need it.

This is what's known as "Adverse Selection," when the pool of - in this case - insurance applicants becomes faulty. The provision creates an imbalance in population need, in that there is now a lesser number of those of don't need insurance, and -- by default -- a greater number of those who do.

Think of it this way, a car salesman knows that on Wednesday, a sudden group of 40 people will come to purchase/lease new cars because theirs broke down. Without a doubt, the salesman will increase the price, because he/she knows that there is this inbound necessity for new transportation.

The same concept applies here: Because insurance companies understand that there will suddenly be an increase in applicants that "need" health insurance, they are likely to charge more. Adverse selection suggests that markets fail when the pool of consumers sellers (companies) must choose from becomes knowingly imbalanced.

Why does this matter?

Well, if you’re a young  healthy adult over the age of 26 and physically active, you’ll be less likely to purchase insurance as there may not be a great need for it. If you fall into any other category, your policy prices and insurance premiums will most likely increase.

Repealing the individual mandate represents only a portion of political efforts to replace the ACA. And this provision is but one of several that sides in Congress have promised to attack. Regardless, retracting incentives that keep people in insurance markets is sure to cause imbalances in price -- how Congress decides to address this is something it has yet to announce.