Running a business is no easy task, and after spending all your time handling customers, managing your employees and dealing with daily operations, mountains of paperwork can look daunting. Keeping your books neat, tidy and up-to-date is something a lot of business owners need help with. Often, these businesses turn to professionals to take the weight off their shoulders.
Why hire a bookkeeper? Here are a few reasons:
1. Professional bookkeepers help you save time.
Managing your business is a full-time job, and managing financial records can be time-consuming. You are already focused on doing so much for your small business, so allocating several hours to dedicate to financial paperwork can be the straw that breaks the camel's back. If you hire a bookkeeper, you are freeing up time and energy to focus on other aspects, such as developing customers, launching new products, or simply having more time with your family.
What it costs in fiscal amounts will be saved in time costs for you and your business.
2. You won't have to worry about missing invoice payments.
Nothing messes up your small business income statements more than late or unpaid bills. Aside from skewing your financial information, you might also be liable to pay late fees in some cases, which no one wants to do. With a bookkeeper this won't be a worry given they will alert you of any outstanding or soon-to-be outstanding balances before there's an opportunity for a late fee to occur.
3. You'll be notified of any cash flow issues.
Since your business' bookkeeper will be focused on your company's cash flow, they can see all of your purchases, and through a professional lens, they can identify any issues. Many small business owners make mistakes with tracking cash, claiming GST, classifying employees and contractors correctly, and reporting sales tax. It's easy to make a small mistake, but there may be consequences to doing so.
Bookkeepers have a good idea of how your invoices, receipts and other aspects should look, and if there's something off or even money going somewhere it shouldn't, they can alert you immediately.
4. Bookkeepers make taxes easier.
Let's face it; no one likes filing taxes. Especially if they aren't filed on time, your small business is looking at a 5% fine with an additional 1% per month; it's tardy. When tax season comes around, ensuring everything is in order can be challenging, but organization is a second language for bookkeepers.
A bookkeeper can provide the appropriate paperwork and a clear financial statement to put your business' income into perspective. Having said paperwork in order makes it easier to arrange for a tax return and takes most of the stress out of the process.
5. It's easier to secure loans.
You must provide a creditor with accurate and precise financial information about your business to receive a loan. The better your record, the more likely you are to secure a loan essential to expanding your small business. A bookkeeper will ensure all of your needed financial statements are in order in case they need to be presented to the bank promptly.
Hiring a bookkeeper can provide plenty of benefits to your small business. Having all of your finances organized in statements allows you to see your cash flow clearly, makes tax season go by smoother, ensures invoices are paid on time and, if need be, makes securing a loan easier. Although it may cost more than simply doing it yourself, what it costs you financially, a bookkeeper provides you with saved time cost.
Not quite sure where to start? We can help! Reach out to the She Wolf Inc team to book a connection call today.