The Importance of having a Bookkeeper

Many small business owners will try to keep bookkeeping and many financial operations in house but that isn't always the best idea. So what is the importance of having an actual bookkeeper?

Hiring a bookkeeper can have a significant impact on the success of a business. A few key reasons that why this is so important: Time-saving, Accuracy and compliance, Financial insights, Tax preparation, and Business growth.

Time-Saving

As a business owner, your time is valuable. By hiring a bookkeeper, you can free up your time to focus on core business activities, such as growing your customer base or developing new products and services. You may be thinking, "well if I was doing the bookkeeping it would be saving my company money" or maybe "my spouse could easily take care of this for me". I'm sure that either you or your spouse could work on the books but is that really the best use of your time? Are you or your spouse prepared to take trainings on how to mange the books or how to do them accurately? If you are thinking that you are saving money by doing the bookkeeping yourself then you may find your self taking more and more time to finish up the books or re-doing the books to make sure they are accurate and you need to value your own time when you are woking through this. If you really value your time and the value you bring to your company that this actual could be more costly than you image.

Accuracy & Compliance

Bookkeepers are trained professionals who understand the ins and outs of financial record-keeping. They can ensure that your books are accurate, up-to-date, and compliance with relevant laws and regulations. This can help you avoid costly mistakes and penalties. Were you aware that if you don't file all the appropriate paperwork with your employees you could owe past taxes, penalties or even jail time. Many bookkeepers and accountants also know how long paperwork should be kept and what forms need to be filled out to make sure your company is doing everything the correct way. Many business owners might not know that they need to keep documentation like time cards for 2 years to be compliant with the auditors office.

Financial Insights

A bookkeeper can provide you with valuable financial insights by analyzing your business's financial data. They can help you understand your cash flow, identify trends, and make informed decisions based on your financial position.

“A good bookkeeper will also work with your CPA, EA, or yearly tax preparer to make sure information regarding depreciation will be entered correctly.”

Tax Preparation

Bookkeepers can assist with tax preparation, ensuring that your business meets all tax obligations and takes advantage of any available deductions. This can save you time and potentially reduce our tax liability. A bookkeeper does this by organizing financial records to ensure they are accurate, complete, and well-organized. This includes maintaining records of income, expenses, receipts, invoices, and other financial transactions making sure that reports are submitted in a timely and accurate way. They will assist in generating financial reports, such as profit and loss, balance sheets, and cash flow statements. Bookkeepers are also in-tune with tax deadlines for withholding taxes for payroll as well as sales and use tax for the state you are selling in. A good bookkeeper will also work with your CPA, EA, or yearly tax preparer to make sure information regarding depreciation will be entered correctly into your files.

Business Growth

By having a bookkeeper handle your financial records, you can gain a clearer picture of your business's financial health. This information can help you identify areas for improvement, make strategic decisions, and plan for future growth. A bookkeeper can play a vital role in supporting business growth by offering financial analysis of your businesses health and analyzing data to identify trends, patterns, and areas of improvement. Bookkeepers can also work with businesses with budgeting and forecasting to pursue your future goals and set realistic targets and allocate resources effectively.