10 Reasons You Need A Bookkeeper For Your Business
Having a bookkeeping system is an essential part of any business. The thought of wasting a couple of hours a week doing bookwork when you could be making another sale or spending quality time with the kids means that many small businesses do not keep up to date with the paperwork. Here’s 10 reasons why you need bookkeeper for your business:
1) A bookkeeper can spend a couple of hours a week keeping your paperwork up to date so you can relax or work more on your business.
2) A bookkeeper does bookkeeping for a living, so that they will not only spend less time doing the books than you would, they know what they are doing, they will typically be more efficient and accurate in their work.
3) There’s a legal requirement to have your business financials in order. If the state or federal government decided one day to undertake an audit on your business, wouldn’t you like to know that your books were up to date, giving them less time and less opportunity to snoop around in your affairs?
4) Having your bookkeeping in order means that if you need to make a quick business decision that could affect you financially, you’ll have all the relevant information at hand to help you make the best decisions.
5) With a bookkeeper working regularly on your financials they’ll see patterns emerging and can bring matters to your attention that you may have overlooked.
6) Well managed bookkeeping will provide you with financial statements such as profit and loss and a balance sheet. They are also needed if you are applying for credit from vendors or financial institutions.
7 ) Keeping up to date with your paperwork avoids the risk of late payment fees, penalties and fines.
8) Having a bookkeeper reduces risk of making uninformed financial decisions, because you would be better aware of your overall profit and loss situation.
9) How about actually not having to worry about sitting at a computer and working until the wee hours of the night on your bookkeeping? Your bookkeeper can relieve you of the hassle and stress of facing a task you really do not want to do but know it should be done.
10) When it comes time to sell your business, buyers will be able to see the true value of the business that you have worked so hard in developing.
Regardless of the size of your company, good bookkeeping practices are essential to keeping your business running smoothly. Accurately kept books do more than make it easy to file your annual tax returns. Banks may require you to submit a profit and loss statement or balance sheet so they can determine your credit-worthiness. A quick review of your books can show where you need to spend more or less money; who gives you the most business and who takes the longest to pay you; how much you’re spending compared to how much you’re making.