If you just opened a small business, have a little accounting background, have been balancing your checking account successfully, or are really just good with numbers, you may manage without a professional bookkeeper. Otherwise, just be safe. Then again, even if you are good with numbers, doing your own accounting can make you lose focus on the business itself.
Definitely, there will be off-the-shelf programs and online applications to help you with your DIY bookkeeping, but really, do you believe it’s the smarter way?
Before you decide, read on and understand the following benefits to hiring a professional bookkeeper:
Why Experts Aren’t As Bad As You Think
The Ultimate Guide to Accounting
As an entrepreneur, you are highly aware of how valuable your time is. Time you should use to make your business work. If you were to do your own bookkeeping, and considering the fact that you are an amateur – which means you’ll probably be low on efficiency – how can you focus on your day to day operations? Time is not like energy. You can really lose it.
A Clearer Finance Perspective
How much profit is the business making? How much of it is actually yours? A bookkeeper can provide a snapshot of your business finances when you ask for it. A bookkeeper can show you real figures in real business reports. There’s be no guessing games as to how the business is financially going because you will get facts.
No Tax Filing Stress
No entrepreneur likes doing taxes, but it remains a legal obligation. A bookkeeper will not just report to you the figures, but will also fill out the forms for you, file them, and handle your tax fund.
AR and AP Management
When leaving bills and loans unpaid when they’re due, you end up having to pay more interest and penalties. If this happens often, you will have tied up capital and a limited cash flow. If you hire a bookkeeper, your profitability can increase just by having well-managed accounts.
Check and Balance
If you have a business partner, things can get complicated unless you have a system of check and balance in place. Believe it or not, having a bookkeeper can spare you from unnecessary strain on your personal or business relationship. By letting a third party check into your business transactions, you won’t have reason to doubt whether sales are being reported properly, or whether marketing is spending too much money, etc.
Expert Bookkeeping Advice
How much of the income should go to paying off debt? Can you afford opening a new branch? These are just a few of the most common decisions you have to make as entrepreneurs. Not all bookkeepers experts in finance, but with their training and exposure, they will be able to offer insights that you can use to improve your business.