Corte Madera, CA -- (ReleaseWire) -- 12/02/2019 --Accounting is a vast body of knowledge that takes several years of intensive study to learn. Bruin hopes to demystify the accounting landscape for small and medium sized business owners through its public education campaign. Many small-medium sized companies do not have enough work or a large enough budget to have an in-house accountant and thus seek to contract with outside firms to do their monthly accounting.
One problem that Bruin sees in the current landscape is the phony bookkeeping schemes that run rampant on Google and other search engines. Navigating that puts an undue burden on small business owners.
"There are companies out there that charge low rates (such as $50/hour) for purportedly providing bookkeeping services, when in fact they are only doing what is known as "single entry" bookkeeping rather than accrual bookkeeping. A single entry system is not a really a system at all as it doesn't account for everything or enable a trial balance. The services provided by such firms are virtually worthless and can be done by anyone. Accrual bookkeeping on the other hand makes sure everything that is supposed to be accounted for is accounted for and gives the actual economic performance picture of a company," according to Bruin's website bruinfm.com.
These firms typically don't have the knowledge base to deliver such services, the qualifier for which is the CPA Exam. A college program of accounting study will only get a person part of the way there and accountants typically spend another academic year studying for the CPA Exam which is aligned to professional practice.
A second problem Bruin sees is that large accounting firms hire accountants who haven't passed the CPA Exam, will never pass the CPA Exam, and who almost certainly don't know all of the necessary calculations involved for every type of accounting entry.
"There are infinite incorrect ways to get to balance on a trial balance or balance sheet. Is a supervising accountant going to find all of the errors or omissions in his cursory review? I highly doubt it. While large accounting firms use accountants that haven't passed the CPA Exam, we do not. That's the Bruin standard," said Bruin's Principal, Ryan Carmichael.
"Many small-medium sized businesses can't afford the $250-450 an hour charged by large accounting firms. That's where Bruin comes in. We offer premium services exclusively to small-medium sized companies at much more affordable rates than large accounting firms. So while large companies may be relegated to paying exorbitant accounting costs, you as small-medium sized business owner no longer are. Why pay more for inferior services? It obviously makes no sense," said Carmichael.
Another problem Bruin sees are accounting software gimmicks predatorily marketed to small business. Accounting software cannot magically give you correct accounting if the person using it does not know accounting and no rational lender will lend to your company and no rational investor will invest in your company without accounting done by a competent accountant.
Hiring a remote accountant also allows you to have a professional independent third party produce your accounting reports without incurring additional overhead like additional office space, supplies, payroll taxes, and employee benefits. Without accrual accounting, you can't know how much in new expenses or owner profit taking your business can actually afford without jeopardizing its long term health.
Further, without accrual accounting your company's economic picture is uncertain which equals risk to lenders which equals higher interest rates on an operating line of credit or a loan needed for expanding your business. Bruin hopes to make accrual accounting accessible to all small and medium sized businesses.