Contrary to popular belief, hiring a bookkeeper can be a big advantage and take a huge weight off your shoulder. However, many small and large businesses still do their books themselves, believing that bookkeeping is an additional cost to the company.
A decent bookkeeper can help you with several things, including smoothing cashflow, identifying last payments, finalizing your accounts, etc. Before we begin, let us debunk some myths surrounding bookkeeping and then discuss the advantages of having one for your business.
Do You Need a Bookkeeper to Start a Business?
If you have just started a business, then you may wonder if you would want to hire a bookkeeper or do it all by yourself. Doing all the math and ensuring that your business complies with the statutory laws can be a tedious and frustrating task. So while you can start your business without a bookkeeper, you should really be considering all the benefits of hiring a bookkeeper for your business.
Some of the benefits of having a finance professional are:
-> Ensure that you are growing smart and in the right way.
-> make sure that your tax payments are accurate.
-> Paint the bigger picture by showing the growth path to your business
Does Every Business Need a Bookkeeper?
Business owners like to handle their own finances for several reasons, including the fear of giving private financial information to third parties. However, doing books yourself in a start-up is still manageable, while it gets extremely difficult as your business grows.
Accounting and finances are the backbone of your business, and you should have a skilled person to do it for you if you want to further expand your organization.
How Can Bookkeepers Help Small Businesses?
According to the US Small Business Administration, 50% of new small businesses fail within five years of starting, and the main reason for that is financial mismanagement.
There are several reasons why small businesses need bookkeeping, including:
-> Filing and paying your taxes
-> Keeping a record of the amount payable and receivables
-> Easy reconciliation of your bank accounts
-> Gauge if you are making profit or not
Now that we have debunked the myths of having a bookkeeper, let’s look at the top 10 benefits of having one for your business
# Focus On Your Business Strategy
Having a bookkeeper for your business helps you focus on your growth strategy as it takes care of tracking the minutest details and insert it into the accounts software.
# Decrease Accounting Costs
A bookkeeper can help you decrease your accounting cost by managing daily transactions and running monthly payroll.
# Keep An Eye On The Cashflow
Bookkeepers provide the second set of eyes to oversee your cashflow and warn you when you run low on money. They ensure that there is a continuous flow of cash in your organization.
# Provide Key Figures Quickly
Get quick and almost instant access to your monthly business reconciliation and reporting by hiring a bookkeeper. They can also quickly provide you mid-month information if you need it.
# Provide Unbiased Guidance
Bookkeepers are the right professionals to guide you through your balance sheet, statement of cashflow and income statement and tell you what they exactly indicate.
# Helps You Take Quicker Decisions
With proper professional guidance from a bookkeeper, you can make more informed and quicker business decisions as you will have all the financial details and insights reported accurately.
# Gives Total Control Of Financial Data
With a quality accounting software in place, a bookkeeper can work on the data available in the software to manage your business’ financials more effectively.
# Decreases Tax Liabilities
A bookkeeper with experience in your specific industry can provide you with information on tax-deductible expenses. This way you know where you can save taxes and reduce your tax liabilities.
# Tracks Daily Transactions
A professional bookkeeper’s bread and butter are to manage and record day-to-day bank transactions. If you are already using accounting software, your bookkeeper can feed your bank statement into the software to monitor cashflow and save time on manual data entry.
# Helps Run Businesses Smoothly
Bookkeepers are not just for large companies. Like mentioned before, they are vital for running both large and small businesses smoothly. Inaccurate bookkeeping can result in massive loss of money and hefty penalties from the regulatory bodies.
Hire the Right Person for Your Books!
A bookkeeper is vital for organizations and helps them manage their financials effectively. They also provide insights and recommendations on the financial health of your company, thereby helping you make faster decisions.
It is a wise decision to hire a bookkeeper if you want to save time and money and further expand your business.