Many business owners work on their books for hours on end—but you don’t have to. Here is why you should hire a bookkeeper for your business.
Many business owners want assistance with bookkeeping and require a professional bookkeeper. We understand that getting excited about bookkeeping can be difficult, whether your DIY technique is no longer working or numbers have never been your thing.
And as your business grows, so does the necessity to keep track of your finances. That’s when a knowledgeable bookkeeper or accountant might come in handy. A go-to pro can handle the most intricate number crunching, allowing you to focus your energy on what really matters: operating your business.
A savvy bookkeeper will also stay current on practices that will assist them in enhancing their skills to continue to grow with your company. Remember that just because someone has a solid track record doesn’t imply they won’t leave without a trace. The most straightforward approach to eliminate this risk is to monitor how long employees stay with the organisation.
Why Isn’t DIY Bookkeeping a Good Idea than Choosing a Bookkeeper?
Managing your own books may seem simple at first. However, when a company grows, so do its financial requirements. Hiring a bookkeeping firm or an in-house bookkeeper can help in this situation.
A bookkeeper oversees your company’s day-to-day finances. Typical duties include:
- Keeping track of and organising sales, invoices, purchases, bills, receipts, and other commercial transactions.
- Creating accurate financial reports like financial statements and balance sheets.
- Explaining your money in a way that is understandable to you.
- Business process design, updating, and auditing.
- Recommending accounting software and other tools to help you operate your business more efficiently.
- When your company is new, you might be able to handle these chores without breaking a sweat. However, there comes a point when handling the books is the last thing on your mind.
- A skilled bookkeeper will manage your finances, allowing you to focus on your area of expertise and achieve your business goals.
Big Reasons Why You Should Have a Bookkeeper for Your Business
Here are the reasons why you should hire a bookkeeper for your business:
Your Books Are Never Up to Date
There’s a reason cash flow is king. Without it, you have no visibility into how your money performs or the capacity to make plans. For most small business owners, paperwork expands along with the company. Leaving your documentation until the last minute can jeopardise your small business and get you into problems without your knowledge.
You need a bookkeeper if you have no idea whether your trading is profitable or what your cash flow looks like. While an accountant provides strategic guidance and maintains your tax returns, a bookkeeper is more hands-on in managing your cash flow. Financial transparency enables you to proactively build your organisation, plan, and forecast without risky guesswork.
Un-updated Business Transactions
As your company expands, so will the paperwork and record keeping. Every small business owner has poor time management, frequently putting off the crucial duty of maintaining the records until they must be done or it is the tax season. If you do not keep your records up to date and financial concerns are not recognised early, you may be heading for trouble without even realising it.
Falling behind on record keeping indicates that you require a bookkeeper’s services.
You’re Missing Out on Tax Breaks
Many company expenses, including digital downloads, online subscriptions, and even office space rent, are tax deductible. You can use these deductions to offset your overall business revenue and decrease your tax liability—but only if you know them and properly report them to the IRS.
However, chances are you’ve missed a few deductions throughout the years because you didn’t keep track of them. When you’re racing to update your accounts at the last minute, it’s easy to overlook clear tax write-offs.
Fortunately, bookkeepers maintain track of all your transactions and categorise them appropriately to decrease your total tax burden. They’ll also better understand which tax breaks your company is eligible for.
Missing on Tax Deductions
Your company must adhere to legislation and other standards (such as accreditation) necessary for your industry, but doing so can be time-intensive.
To meet your commitments, you’ll need to keep up with developments, such as ongoing changes in superannuation law, and update your business processes and documents. A competent bookkeeper who receives ongoing training can save you all this time while ensuring your firm remains compliant.
Excessive Complexity
Hiring new employees/contractors introduces a new realm of paperwork into your company, making all administration activities more difficult. Qualified bookkeepers will be up to speed on any employee-related regulations and will be able to advise you on your legal requirements.
Don’t Have Enough Time to Handle Everything
More clients, higher billing volumes, and more back-office paperwork are all signs of a growing firm. And as your company expands, so will your to-do list. But there’s only so much labour a person can do in a day, and your time as the showrunner is highly valuable.
When you are in charge of your bookkeeping, you may be diverting your attention away from more vital responsibilities, such as marketing and client work, that will help your business develop and raise revenue.
Get Financial Assistance with Outbooks Bookkeeper Services
As small business owners, we often take pride in our do-it-yourself approach. Why shouldn’t we? It was quite useful when we first began out.
However, as our company grows, doing our bookkeeping becomes unproductive. With advancement comes additional duties and an ever-expanding to-do list. Something has to give at some point, and you’ll need to engage a bookkeeper.
This is not the path that every small business owner will take. After all, mastering your finances can be both satisfying and empowering. However, if number crunching feels like the last thing you should be doing, it’s worth looking into a solution that allows you to focus on what you really love.
Outbooks offers bookkeeping services to help you get back to work. We ensure that your books are up to date monthly and ready for tax season by combining smart software with an economical virtual bookkeeping specialist.
Let an Outbooks Pro Handle the Figures while You Focus on Your Core Business…
