10 Reasons Why Your Small Business Needs a Bookkeeper
When it comes to running a small business, we realize that your budget is critically important. That’s why most small business owners are so careful about expenses and reluctant to spend on products or services they really don’t need.
While that logic makes sense, there are some corners that really shouldn’t be cut when it comes to ensuring your small business is a success and bookkeeping is one of them.
Small businesses benefit from bookkeeping for a number of reasons. In fact, we’ve rounded out a list of 10 reasons why your small business needs a bookkeeper.
Why hire a bookkeeper? Your 10-point checklist.
As a professional bookkeeping service, we often encounter small business owners who are thinking, well… too small. In other words, they imagine their business doesn’t need to hire a bookkeeper because it isn’t a major corporation or highly recognized brand. Setting the jokes aside, size really doesn’t matter when it comes to bookkeeping for your business.
After all, as thought leader and entrepreneur Bryant McGill said, “Nothing great ever happens from thinking small.”
Whatever your professional aspirations, we can safely assume that you want your business to grow, which is why you need to empower it with the tools to do just that.
The benefits of small business bookkeeping are as follows:
Your financial records will be accurate:
Bookkeepers help maintain accurate and up-to-date financial records. This includes recording income, expenses, and other transactions. Accurate records are essential for understanding the financial health of your business, making informed decisions, and fulfilling legal and tax obligations.
Your financial picture will be made clearer by an outside perspective and analytical eye:
Bookkeepers can help provide insights into your business’s financial performance by generating financial statements and reports. These analyses can assist you in understanding trends, identifying areas for cost-cutting or revenue growth, and making strategic decisions.
Compliance with tax codes is guaranteed:
Small businesses have tax obligations that must be met accurately and on time. A bookkeeper can help organize your financial records in a way that makes tax preparation easier and more accurate. They can also assist in ensuring that you claim all relevant deductions and credits, potentially saving you money. Speaking of savings…
Time managed… and saved:
As a small business owner, your time is valuable. Hiring a bookkeeper frees you from the time-consuming task of data entry and financial record management. This allows you to focus on core business activities, such as growing your business, serving customers, and developing new products or services.
A strategic financial plan:
Bookkeepers can provide valuable input for financial planning. They can help you forecast future cash flow, budget for upcoming expenses, and set financial goals based on historical financial data.
Bank reconciliation you can rely on:
Reconciling your business bank accounts is crucial for ensuring that your financial records match your actual bank statements. A bookkeeper can help identify any discrepancies, errors, or fraudulent activities in your accounts.
Simplification of complexities:
As your business grows, so does the complexity of its financial transactions. A bookkeeper can help manage this complexity, ensuring that your financial records remain accurate and organized as your business expands.
Minimize mistakes and potentially costly errors:
Bookkeeping involves a lot of detail-oriented work. Hiring a professional bookkeeper reduces the risk of errors in your financial records, which can have significant implications for your business’s financial health and reputation.
Confidence in your decision-making abilities:
When you have reliable financial records, you can make more informed decisions about pricing, investments, hiring, and other business matters.
Adequate audit preparation:
In case of an audit by tax authorities or regulatory bodies, having well-maintained financial records can make the process smoother and less stressful.
Look at it this way: with everything involved in running a small business, do you really want the ten items above on your plate, too? Another perspective, relative to potential audits, tax codes, and legalities: can you afford not to hire a bookkeeper for your small business?