Bookkeeping: The Necessary Evil
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Are you a small business owner looking to stay under budget by doing the bookkeeping yourself? Well my friend, have I got news for youyou are not alone! There are many other small business owners out there who are looking to save time and money too. But they have dug themselves into a hole by writing every check themselves and balancing each account without any assistance. Unfortunately, bookkeeping goes beyond entering a few numbers here and there which takes away from what you love to do grow and sell your business. Enter VBP OutSourcing the solution to your financial problems.
Time is money. This is a bookkeepers motto in life. Your time is too valuable to spend doing the financials when you have a business to run. You also dont have the time to worry about whether there is enough money to hire new employees or if your expenses are too high to purchase new supplies for the office. All of these financial questions can overload your brain and take away from other more important tasks and responsibilities of running your business. This is where a professional bookkeeper comes into the business picture.
A bookkeeper is not just another face in the accounting crowd. They are a vital part of your team, tracking the financials of the company, and ultimately the reason for your businesss success. Bookkeepers are there to make sure that your company does not run into one of the many common mistakes business owners find themselves in. The following list is 7 reasons why your business, small or large, should hire a bookkeeper, rather than do the finances themselves.
1. Focus On Growing Your Business. Your bookkeeper will spend time every week keeping your paperwork up to date, so you can relax and spend more time on your business. Bookkeepers know what they are doing and enjoy what they do. Bookkeepers maintain accurate records and financial books which provide insight into important business questions such as: Is my company earning enough money? By keeping up to date with your paperwork, you can avoid the risk of late payment fees, penalties, and fines
2. Bookkeepers Understand. A bookkeeper understands the need for financial organization. They are able to reduce the chaos that are receipts, POs, invoices, etc. cluttering your desk to order by efficiently filing your papers away. A bookkeeper can also help by reducing your risk of paying twice for the same bill or by paying the wrong amount. Again, bookkeepers understand that your time and money are the most important assets to your business.
3. AuditsNeed I Say More? Having your business financials in order and up to date is legally required by law. Specifically, if you are a government contractor, a business is required to be compliant with DCAA regulations. If an auditor would pop into the office today without notice would you be sweating bullets or relaxing with your feet propped up on your desk? Bookkeepers keep your financial books current, so that you dont have to worry when auditors drop in unannounced.
4. If You Dont Know Where Youre Going, Any Road Will Take You There. Dont let this be your companys motto. Know where your business is going by understanding where it has been. Bookkeepers will paint a clear financial picture by telling you which road to follow when you come to that fork in the road. They will provide you with answers to your most important business questions such as How does my spending compare to my sales? so that you will make the smartest and most competent business decisions.
5. Patterns, Patterns, Patterns. Patterns are everywhere you look. They are frequently found in numbers from prime numbers to ratios to your companys sales patterns. Since your bookkeeper is constantly reviewing your account, they have the ability to see patterns or reoccurring financial events that you, as a business owner, may overlook. By providing you with up-to-date financial reports, you can track patterns (peaks and declines), so that you can be more prepared for your next business decision. Budgets, a result of knowing your companys patterns are a must for businesses. If you know the patterns of your business, creating a budget will come smoother and much easier. Budgets can then forecast your fiscal flow which, in turn, will control your cash needs and manage your expenses. In simple terms, the solution to the success of your business is to hire a pattern seeking bookkeeper.
6. The Dreaded Date of April 15th. It makes no difference who you are - an individual, a family, a small business of 10, or a large company of 6,000 - you must file an income tax return every April. With a bookkeeper, your financial records will be consistent, but more importantly, correct. Therefore, when it comes time to prepare your taxes, you can rest assure that they will be done on time and in compliance.
7. Bottom Line: Increase Your Bottom Line. By hiring a bookkeeper to your team, you can be sure that you will have more time to focus on your business earnings. Instead of a salaried employee, you can pay for only the hours needed on your financials. In other situations, if your business is in need of a partnership to increase or sustain profitability, then having well-maintained and up-to-date books will, therefore, paint a prettier financial picture for your future colleagues. In the worst case scenario, if you have to sell your business, buyers will be able to see dedication and value in which you put into your business through well-kept financial books. Bottom line hire a bookkeeper! |
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