The Basics
How does your program work?
What does your contract contain?
A couple key points to consider include:
- Under this arrangement, we will be invoicing and applying the payments for all of your work. We cannot provide insurance coverage for you for any work we do not manage. And, without all your work being done through us, your company’s financial reports would be inaccurate.
- You need to have each of your clients sign an addendum to your normal client agreement saying that all their payments will be made to BackOffice Simplified. Otherwise, we will have open invoices on your account that won’t be paid.
What if I only need one part of your program, say business insurance? Can I just sign up for that?
This is a package deal. It only works if we provide a complete basket of services for our clients. We are not an insurance broker, nor are we an IT support company. We are providing a basket of BackOffice Services to meet the needs of our clients.
How could you help businesses that are already using some form of administrative or IT support but are looking to upgrade or consolidate services?
Each of the providers we are using is state of the art. They have years of experience in their field and are the best in their respective industries. Whatever providers you’re using now, we promise you will receive top-quality service and assistance from our providers.
Finance and Bookkeeping
How am I paid for the work I’m doing?
We would pay you on a bi-weekly basis for all the money we have received from your clients up to 7 days prior to payday. Just as any other supplier of BackOffice Simplified, we would pay you by ACH or Direct Deposit.
What kind of deductions do you take from what I am paid?
Since you are working as a 1099 worker, we don’t deduct any state or federal payroll taxes from your payment. But, with each payroll we will deduct half of the monthly fee you owe BackOffice Simplified for the services we’re providing. In addition, we will deduct your part of the health insurance premium. Since we are paying bi-weekly, there are going to be two months during the year in which there will be three payroll periods. During those months, there will be no deduction for either health insurance or BackOffice Simplified’s fees for the third payroll of the month..
Do you have a 401K program for your workers?
Unfortunately, we do not. A 401K plan is only available for W-2 employees. But as a 1099 worker, you have the opportunity to put away a lot more of your income, tax free, towards retirement as part of a SEP than you can as a W-2 employee contributing to a 401K. You will likely be able to shelter more than $60,000 annually. Please see your tax advisor for specific details.
Is there flexibility in cost and support if my business experiences fluctuations in revenue?
Our rates are based on annual sales volume, because most of our services are priced to us based on the size of our book of business. To make this as cost effective, and as accurate as possible, we will bill you based on your previous month’s sales performance. For months when you have greater sales, we will bill you for that increased volume. For months when your sales have been lower, your invoice for services will be reduced as well.
Since you’re going to be doing all of my bookkeeping, will you also be filing my income taxes or sales taxes for me?
No, we are just doing your bookkeeping. We are not going to be processing any tax returns or tax filings for you. If you need an accountant to do your income tax filings, we can recommend some good accounting firms.
Since you’re doing my invoicing and paying me from the cash that you receive from my customers, will you also be reaching out to my clients to collect money from people that are late paying?
No, from the bookkeeping side of things, making collection calls is not part of our program. You will need to reach out to your customers to follow up with them to pay their bills. But, we will provide you with a monthly report showing which of your customers are late making their payments, so you can easily reach out to them.
How do you ensure accuracy and timeliness in your financial reporting?
We have been providing bookkeeping services for companies for over 10 years. Our team of US-based bookkeepers are highly skilled at working for small businesses. Their work is supervised by several people with more extensive experience. It is our oversight, and years of experience, that ensure your financials are done properly, and in a timely fashion.
Do I need to switch to QuickBooks, or can you work with other accounting software?
Yes, QuickBooks is the leading financial reporting program for small businesses, being used by more than 29 million small businesses, holding an 85% market share. And, we have very deep experience with it. We can work with any of the QuickBooks versions and are happy to work with you to convert your QB Desktop or QB Enterprise package to the latest version of QuickBooks Online (QBO).
I’m way behind on my bookkeeping. Will you be able to get me caught up?
Yes, we will absolutely be able to get your past bookkeeping information entered into QuickBooks for you. This is going to be quoted to you specifically, based on how far behind you are in your bookkeeping, the detail of your bookkeeping, and whether your past records can be downloaded electronically from the bank. Please reach out so we can give you a custom quote.
Insurance
What can you tell me about your Group Health Insurance Plan?
This is the group plan we have used with our employees for the past 5 years. It is a Blue Cross Blue Shield plan that provides coverage throughout the United States. It is not available in Canada. We have both a PPO and an HMO plan available for you to choose from. The premiums are based on the age of the participant, according to the schedule set by BCBS. BackOffice Simplified pays 50% of the cost of the 1099 worker’s monthly insurance premium. There is family coverage available in the group, but the company does not contribute to that cost. When you sign up for the insurance, your coverage becomes effective on the first of the month following when you join.
When do I become eligible for your group health insurance?
The group health insurance is effective on the first day of the month following the month that you join the BackOffice Simplified program.
How do you manage ongoing enrollment or claims processes?
We will work with you through the onboarding process, to make sure everything is in place for you as quickly as possible. When it comes to insurance claims or service calls for your IT issues, we will provide you with direct access to the carriers, so you have direct personal input into the claims process. This helps avoid misunderstandings and facilitates resolution of any issues. If there is a claim, you will be responsible for any deductible or insurance retention.
What if I get health insurance from my spouse, or I’m on Medicare and can’t use your Group Health Plan?
We recognize that there are unique circumstances where someone is not eligible for our Group Health Plan. If you are not eligible because you live in Canada, are covered by your spouse’s insurance or are on Medicare, you won’t have to sign up for that part of the BackOffice Simplified program, and we’ll deduct $500 per month from your monthly fees.
Can you explain the differences between general liability, professional liability, and workers’ compensation coverage?
- General liability insurance – As a small business owner, you may be legally responsible if another person gets hurt or if their property is damaged while at your business or because of something you did.
- Professional liability insurance, also called errors and omissions insurance (E&O insurance) or indemnity insurance, protects your business if you are sued for negligently performing your services, even if you haven’t made a mistake.
- Workers’ compensation insurance provides medical and wage benefits to people who are injured or become ill at work. The coverage is mandated by each state and the wage and medical benefits vary by state.
What confirmation will I have on the package of business insurance you are providing? How can I confirm the policies are in effect, and confirm the coverages?
Each of our clients are “Named Insureds” on every business policy we provide. As a result, after you sign up with BackOffice Simplified, you will receive a Certificate of Insurance that will, not only show the individual policies you have, but the coverage levels, deductibles and limits are also going to be shown on the Certificate of Insurance. If you have any other specific questions, please reach out to us for clarification.
IT Services
Will I experience downtime during the transition to your IT services or bookkeeping systems?
It does take time to establish a working relationship with each of our services. But, as long as we get all the information we need, we should be able to establish Managed Services for your computer in a few days, and accounting services by the start of the next month.
What is needed to get connected to your Managed Services for my computer?
Your computer needs to be current enough by both hardware and operating system standards to be able to operate the security software that we will install on your computer. This is necessary to protect your files, your email, your clients and our network. Our technicians will examine your computer to determine its setup and performance to ensure it will operate our software to protect our cloud, your information, and your clients’ information. If your computer isn’t up to our standards, you will need to buy a new computer. We will help you purchase that new computer, and will provide you with a discount to make it easier to upgrade your technology. If you choose to not upgrade your computer, and cannot load our Managed Services software on your computer, we will not be able to offer you Managed Services. Unfortunately, if that’s the case, we won’t be able to provide you with a discount from our basic service offering.
Details
How are you able to provide the bookkeeping, insurance and managed services? Are you doing all this internally?
Our parent company provides Bookkeeping Services, so that part of the package is handled internally. All the other services are being provided by the same suppliers that are providing those services to our core businesses and affiliated companies.
How much time can I expect to save each week by outsourcing my back-office tasks to you?
That depends on your number of clients, the complexity of your invoicing and bookkeeping, and other factors. But from experience, we expect you should save between 10 and 15 hours a week of your own time.
Can you customize your services based on my business’ needs? For example, I already have a basic understanding of accounting but have no clue when it comes to dealing with my laptop.
We have a skilled staff that is used to working with entrepreneurs at all levels. We are happy to spend some extra time with you, if needed, to make sure you’re comfortable with the services you’re receiving and know the best way of making use of the services we’re providing.
Do you offer regular reviews or strategy sessions to discuss ongoing needs?
We are happy to meet with our clients at any time to discuss their needs, and provide assistance, feedback, or strategic help with their company’s growth and scalability issues. Even though we don’t have a regular schedule of meetings with each of our clients, if you ever have a question or issue, please reach out, and we will set up a meeting to discuss your questions.
The Big Question
What do you charge for the services I receive from BackOffice Simplified?
You will be charged on a monthly basis for the services we provide based on your monthly sales:
Monthly Revenue | Monthly Charges |
---|---|
Less than $8,300 | $1,500.00 |
$8,300 to $20,800 | $1,900.00 |
$20,801 to $33,000 | $2,225.00 |
$33,001 to $125,000 | $3,400.00 |
$125,001 to $167,000 | $4,250.00 |
greater than $167,001 | $4,875.00 |
That Monthly Charge will be divided into two deductions, one for each of our two payments to you for our collections from your clients.
If you receive a substantial deposit from a client that is going to cover multiple months of work, we will take that into account. As long as you let us know, we will spread that amount over the months it covers, so your payments will be consistent with your annual income, and not that one month’s receipts.
* IOS-based computers cost an additional $75 per month due the added cost of the tools needed to maintain those computers.
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