Any successful business needs a bookkeeper to maintain your finances, monitor budgets, and prepare tax documents. An excellent bookkeeper can make a huge difference and help your business grow. They can help maximize your business’s income, as well as help you determine where you can cut costs.
A good bookkeeper can help you save money, increase revenues, and reduce overhead costs. Here are seven insightful ways that a bookkeeper is great for business.
A Bookkeeper Can Help You Save Money on Your Taxes
Bookkeepers are an asset to your business and can help keep better records. This will ultimately help to improve your tax return. No one wants to owe the government, and the right bookkeeping professional can help you navigate the waters and ensure that you are getting a tax refund rather than owing the IRS money.
Additionally, a bookkeeper can help to keep important documents organized so that filing taxes is a breeze. If at tax time you have piles of papers to sort through, you need a bookkeeper on your payroll. They will help you to claim the appropriate deductions, avoid having inadequate records, and help avoid audit expenses.
Audit Protection for Your Business
As mentioned above, bookkeepers are invaluable when it comes to audit assistance. If you do get audited by the IRS, a bookkeeper can help streamline the process for you or your CPA. Since they prepare all of your business’s financial reports, the bookkeeper will know where the numbers came from that were put on tax documentation.
Let Your Bookkeeper Stress About Finances
It’s your bookkeeper’s job to focus solely on the company’s finances. Yes, you should be reviewing financial documents and signing off on important transactions. However, your bookkeeper is there to prepare the reports and see to it that all expenses are paid.
If your books are disorganized, it can cause significant stress. Managing customers and accounts can be stressful enough; adding to the mix the day to day tasks of keeping your financial obligations in order can put you on overload. Focus on what you excel at and let a bookkeeper do what they do best.
According to Joe DiSanto of PlayLouder.com, “It is the bookkeeper’s job to take the burden of finances off the business owner so they can focus on building customer relations and sales. With the right bookkeeper, a business can run seamlessly, with organization and rising profits.”
A Bookkeeper Can Provide Better Analysis of Your Business
If you want to know how your business is performing (and you should), a bookkeeper can help you with those reports. When your business books are done properly, you can have more insight into your business’s strengths and weaknesses. This is important information if you want to expand, add new product lines, or services.
In addition, if you want to take out a business loan to open a second location, a bookkeeper can help you with the financial documents to facilitate in those processes too. On the flip side, if one location is performing poorly, a bookkeeper can help you understand the cash flow and help you determine if you should make important business changes.
A Bookkeeper Can Help You Get Investors
If at any point you want to open the doors to investors, you will want a bookkeeper to help highlight the positive aspects of your business and show where you need to put money to improve your overall success. Investors like raw numbers and expect to have all of the details when they make a decision. A bookkeeper’s job is to prepare financial reports so that you and prospective investors can see everything as transparently as necessary.
Investing in a business is a risk, and investors want to know that they are putting their money into something lucrative. If the books are clear and concise, investors are more apt to want to get involved. The last thing they want to embark on is a journey of unknown risk. They would rather walk away and pursue other ventures than get involved in an uncertain business transaction.
Increase Your Cash Flow with a Bookkeeper
A bookkeeper can do more for your business than just generate financial statements and file bank statements. Bookkeepers also invoice customers for sales or services and follow-up on outstanding invoices so that you have less pending income. A company cannot be profitable if they have more money outstanding invoices than the money that is promptly collected.
Having a dedicated person to ensure that invoices are paid on time can substantially increase your monthly and annual cash flow. Not only will this increase your income, but it will also alleviate complex financial situations from uncollected service fees.
Bookkeepers Can Save Your Business Money
On the flip side, a bookkeeper can save you money by ensuring that you pay your bills on time. Interest and late fees are unnecessary business expenses that can be eliminated if bills are paid on time.
Some vendors even offer a discount if you pay your bill right away; if they don’t have to chase you down for payment, they are more apt to reward you with a discount. This is an easy way to save money for your business. A bookkeeper can keep track of when bills need to be paid and ensure that you never incur a late charge.
A good bookkeeper can help you keep track of all of your incoming and outgoing money. They can help you pay your bills on time, saving you money, and help you collect outstanding payments, which can make you money. Their job is to provide financial order to your business establishment. They can help you with preparing records for tax season and help rectify any discrepancies that may come up prompting an audit. Overall, a bookkeeper is good for any business and should be considered a necessary cost of doing business.
