As a small business owner, you may think that hiring a bookkeeper is unnecessary and you could simply do it yourself. However, in the long run, it might end up costing you more money, create distractions and build frustration.
Hiring a bookkeeper to help you is not only affordable, it makes a lot of business sense. We’ve listed the Top 9 Reasons to Hire a Bookkeeper here.
1. Do What You Do Best
Consider the time it takes for you, the business owner or executive, to make sure your books are kept organized and up-to-date. Then, think about the time and stress of tracking your accounts receivable, administering accounts payables, reconciling to the bank and maintaining your books.
Instead, focus on what you do best and your business will grow. You will enjoy your business more by focusing on what is most important to achieve your business goals. Hire a seasoned bookkeeper who has been dedicated to continually serving your area for ten years or more so you can see their commitment. It’s good to have on-going support to address the volumes and nuances of your business without having to hire expensive full-time staff.
2. Keeping Poor Financial Records is a Key Cause of
Failure
Keeping inaccurate financial records is one of the reasons why small businesses fail.
A bookkeeper’s full-time job is just that – bookkeeping. So, you can focus your time doing things that are more important to running your business.
A professional bookkeeper is going to have the experience and education to perform every bookkeeping task and to make sure it’s done correctly. They also presumably enjoy this type of work! A business owner doesn’t necessarily have those accounting skills nor do they enjoy it.
3. Bookkeeping Skills & Efficiency
A great bookkeeper knows the accounting software they use, so they will have a greater skill set than the average business owner. This knowledge eliminates or drastically reduced the chance of errors. We’ve seen cases where a years’ worth of bookkeeping needed to be re-done because it was performed incorrectly. Also, reconciling a bank account may take a bookkeeper 30 minutes to complete yet may take a business owner many more hours to do so. Time is money!
4. Records Should Stay Current
A qualified bookkeeper will make sure that your records are current and accurate. They can also track company expenses and ensure that every cost has been entered — and recorded correctly. Since a bookkeeper is someone who specializes in this area, you reduce the possibility of errors and can get the work done in a fraction of the time.
5. Sales and Estimated Tax Calculations Payments
If your business sells goods to customers in California, you will need to collect and pay sales tax. This means you’ll have to make periodic sales tax payments for goods sold. On a periodic basis—monthly, quarterly or annually—you must submit sales tax returns. A bookkeeper can be an excellent source of information when it comes time to remit regular sales and estimated taxes.
6. See the Big Picture…and Your Cash Position.
A bookkeeper can give a business owner an accurate representation of their expenditures, keep track of sales, purchases, payments and receipts to keep the accounting data accurate and up to date. You will know in advance how much money you will have in the bank each month. They can also advise you on issues that might affect you in the short-term, such as cash flow problems or late invoice payment.
7. Have Tax-ready Financials at Year-End
A bookkeeper will record the financial information of your business in a standard way so that
CPAs are able to use the file when it’s time to hand it over to them at tax time. When the IRS audits you or your business and finds insufficient records or significant mistakes in your bookkeeping, it can disallow deductions and could charge outrageous fines and penalties on top of any underpaid tax assessments. Having tax-ready financials lowers the CPA bill and provides peace of mind.
8. Get Paid Faster
Having a professional and responsible bookkeeper handle your accounts receivable gets you paid faster. Ensuring invoicing data is captured immediately and accurately is key. Invoicing your clients in a regular, accurate and predictable manner is important to build trust and professionalism, too.
9. Save Money
Hiring an experienced outside bookkeeper is far less expensive than hiring another employee, especially when you include the employee training required to be up-to-date in the industry and efficient with each task. You only pay a bookkeeper for the actual time spent on your books. And on top of that, bookkeeping services are fully tax deductible.
Focus on what you do best.
YourBizManager can help! You can start the process by sending us an e-mail to info@YourBizManager.com or by texting or calling 424-246-6006.
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About Doris Cristiano & YourBizManager.
As an independent bookkeeper, Doris Cristiano has been providing flexible business services on the west-side of Los Angeles since 1997. To support business needs and growth, YourBizManager tailors its services to each unique situation and works closely with its Clients’ at their business or home office. More About Us
