5 Reasons Why You Need A Bookkeeper
I want to preface this post by saying that if you are a small business just starting out or enjoy keeping your own books, you may not need a bookkeeper. I would like my blog to provide helpful information to the DIYer and the outsourcing business owner. That being said, if you hope to grow your business (which we all do), at some point you will need to delegate or outsource your business’s bookkeeping demands.
So you’ve experienced growth – CONGRATS! But you’re not sure if you are at a place in your business to hire a bookkeeper. If you’ve had any of the following concerns/thoughts, you may need to investigate hiring a bookkeeper to continue in the growth of your business.
A bookkeeper saves you time.
One of the most frequent complaints of business owners is that keeping updated books takes up way too much of their time. And it’s true - bookkeeping is time consuming! We all want growth in our businesses, but with growth comes more income, expenses, bills, and invoices that need to be handled and, frankly, there are more pressing business matters for you tend to. You need to be prepared for growth!
Therefore, most bookkeepers are paid by the hour. However, to save you time and money, J Ricketts Bookkeeping uses a flat-fee pricing model to help small business owners be able to plan and budget for their bookkeeping services. Nobody likes to be surprised by receiving a hefty invoice for work already done so let’s do away with that – NO SURPRISES!
A bookkeeper creates accurate financials on a regular basis so that you can use them to make business decisions.
In my opinion, the greatest benefit of having a bookkeeper is being able to use your financials as a tool in your business on a monthly or even quarterly basis. Financials are not just reports with the monthly numbers – they are so much more! They give you insight into your business and help you to reach any financial goals that you may have. Every business has finances – why not use them to your benefit?
A way that you can use this tool is to simplify budgeting. For example, if you are needing to cut back on some expenses, your monthly income statement will show you where you may need to make some adjustments. An income statement can also show you where your income is coming from. So if you want to know what is or is not working for your business, by keeping updated financials, your bookkeeper can point these cash flow insights out to you. Insight into the cash flow of your business is the biggest way a bookkeeper can support and grow your business.
A bookkeeper can provide better tracking for bills and invoices.
Chances are, you did not go into business because you love keeping up with all the finances – that’s just not your passion and that’s ok. Most business owners look more at the big picture, but this just means you need to delegate out the details.
Bookkeepers are detail oriented. That’s the whole idea – organizing the details. When you hire a bookkeeper, you are hiring someone who will keep a close eye on your financial activity because you simply have more important things to do.
So remember that invoice you sent out that never got paid? No? That’s ok. No successful business owner does! But a successful bookkeeper does. Paying your bills and receiving your payments are essential to every business and, thus, having someone keep a close eye on those aspects of your business is essential.
A bookkeeper provides records that keep you prepared for anything.
There is a sense of security that comes with having a committed individual keeping your financial transactions organized and your records up-to-date. This feeling of security comes from knowing that you are prepared for whatever hiccups, curve balls, or impromptu needs that your business throws at you. You simply cannot go through life as a business owner without the unexpected – it’s what we love about owning a business - it’s exciting. What’s not exciting is not being prepared for the unexpected.
Though unlikely, in the event of an audit, you will require updated records. You will have these on hand, thanks to your bookkeeper. The sooner you can get through the audit process, the sooner you can get back to what matters to you most in your business.
Creditors also require accurate records of your business financials. So having these handy can aid in the process of getting a business loan. In addition to this, if you ever decide to sell your business, being able to show the value of your business with updated financials can help convey the worth to a prospective buyer.
A bookkeeper helps you to approach tax season with confidence.
Nobody likes tax season. As a small business owner AND a bookkeeper, I GET IT. Why not make it go as smooth as possible. Tax season will always be there, but you can take the stress and worry out of it by hiring a bookkeeper. No, bookkeepers do not do your taxes (a common misconception). To break it down for you, a bookkeeper’s role during tax season is to prepare your business financials for the whole year. Then an accountant prepares and files your tax forms based on the information on your year-end financials.
Having a bookkeeper prepare your financials on a monthly or quarterly basis allows you to file on time and therefore, avoid any late tax penalties. This also allows your account to get an accurate picture of just how many credits and deductions you deserve. As a business owner, you need to be able to confidently say that you are getting the maximum amount of tax breaks that you can and having updated financials in a timely manner gives you that. You’ll be able to approach tax season like the boss that you are with complete confidence and absolutely no stress!
If your main deterrent for hiring a bookkeeper is that your business cannot afford it, to you I say “If you think you can’t afford a good bookkeeper, you definitely can’t afford a bad one or not one at all.” That may come off as being a bit harsh, but it’s true! You do not want to be without a bookkeeper long-term. Find a service that can be flexible and work within your budget. I strongly believe that behind every successful business is a successful bookkeeper.
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