If you are opening a small business, and have some background in accounting, have been successfully balancing your checking account, or are just plain good at math, you might survive without a professional bookkeeper. Otherwise, better not take the risk. Even then, no matter if you’re actually good at numbers, doing your own accounting can make it hard for you to actually focus on the business itself.
Certainly, there will be online applications and ready-made programs that can help you DIY your bookkeeping, but the more important question is, “Is this the wise step to take?”
Before you decide, read on and understand the following benefits to hiring a professional bookkeeper:
The Essential Laws of Bookkeeping Explained
Being an entrepreneur, you are well aware of the value of your time. Time you should spend increasing your business’ profits. Must you do your own bookkeeping, and knowing that you are no pro – meaning, you’ll likely be inefficient – how can you focus on running the business? Time is not like energy. It can actually be lost.
Clearer Finance Perspective
How much cash does the business have? What portion 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. No need to guess as to the your business’ true financial position because you will have all the facts you need.
Stress-free Tax Filing
No businessman likes the inevitable legal obligation called taxes. A bookkeeper will not only report the figures, but will also fill in the forms and file them, and manage 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’re working with a partner, having a system of check and balance can make everything easier. Believe it or not, a bookkeeper can help prevent circumstances that put a strain on your personal or business relationship. If someone else is looking into your transactions, there will be no reason to doubt if sales are properly reported or the marketing department is spending too much, and so on.
Expert Bookkeeping Advice
What percentage of the earning must be devoted to paying off debts? Can you afford opening a new branch? These are just a few of the most common decisions you have to make as entrepreneurs. Though not all bookkeepers are finance experts, their exposure and training in business can provide you some useful insights.