Really?  Is the best use of your time to tend to own bookkeeping?    As a small business owner, you likely have many other better things to do like focusing on sales and growth, forecasting and making changes to your business to capture market share and stay ahead of the competition.  Now might be the time to bring on a outsourced bookkeeper to help you focus on your business and save you time and money long-term.  Here’s why.

1. Do a tax review before year-end

Ok, you may be a bit behind this year.  That’s ok.   However, you should never wait until January to attend to your business bookkeeping.  A tax review in early December is very valuable.  You will know where you stand with your tax situation.  If you owe money at least you have several months to provision for the tax liability. If you are due a refund, then you can start planning how to use the money best in your business. There are many tax moves that can be made prior to the close of the year than there are after the new year.

2.  Focus on forecasting and budgeting, not bookkeeping

December and January should be a time for forecasting and budgeting, not for bookkeeping.  If you have update-to–date bookkeeping before the end of the year, it will benefit you in many ways.  You will be able to forecast your finances for the upcoming year. You will also be able to develop a budget for the coming year.  Having a financial forecast and budget in place prior to year-end will enable you to make changes in your business and stay ahead of your competition.  Failing to plan is a plan to fail, as they say.

3. Focus on growth and sales

Having updated books will allow you to focus on growing your business and increase sales. An updated bookkeeping system will reveal any potential opportunities or problems relative to your budget and projections.  If you are falling short of sales or over in expenses, you will be able to quickly identify the problem and attend to it before it gets out of control.  Having a system in place that allows you to focus on growth as well as controlling expenses will guarantee your business is running at maximum profitability.

4.  Lower your CPA bill

CPA rates are much higher than bookkeeping rates.  You need to be very organized — don’t ever hand your CPA a shoe-box full of invoices and receipts to prepare your tax return.   In addition, your CPA is a tax planning professional.  You should not be paying a CPA to handle your abandoned bookkeeping. If you hand your CPA an organized set of books come tax time you will be sure that you are paying as little as possible for tax preparation.

5.  File your taxes correctly

By keeping updated and accurate books, you will ensure that you are filing your taxes correctly, you will reduce the chance of an IRS audit and, if you get audited, you will be organized and ready to respond.  You also won’t have to file for a tax extension, which will keep you from paying unnecessary late fees, interest and multiple reviews of your tax position.  You certainly don’t want to overpay or underpay your taxes either.

6. More cash and less accounts receivable

By keeping updated books, you will have a better handle on overdue customer balances. You can then send statements to overdue accounts, which will result in less Accounts Receivable and more cash flow for your business.  Having a good healthy cash position will help your business and maintain your sanity. Good cash flow will enable you to invest in your business, which will in turn ensure financial stability.

 

Focus on what you do best.

Your Biz Manager (www.YourBizManager.com) can help. You can start the process by sending us an e-mail (info@YourBizManager.com) with your contact information, a list of your bookkeeping or business support needs or by texting or calling 424-246-6006.

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About Doris Cristiano & YourBizManager.

As an independent bookkeeper, Doris has been providing flexible business services in Santa Monica and West Los Angeles since 1997. To support Clients’ needs and growth, YourBizManager tailors its services to each unique business situation and works closely with its clients at their business or home office.  More About Us