When you started out, you may have had the time to manage all aspects of your business. As the business takes on its own identity, you may feel the need to delegate some tasks to manage time more efficiently. When you get to this point as a business owner, a bookkeeper is great to have on your team. People who don’t have a bookkeeper to manage their books will wish they did at some point; if not tax time or invoicing time, its bill paying. A bookkeeper serves a great purpose for any and everyone who wants to take control of their finances.
1. Tax Time Is Much Simpler
Do your research; try to get the most out of your bookkeeper’s skillset as you can. Your bookkeeper should be more than just someone who reconciles your bank statements. Finance professionals know everything about finances, similar to a soccer player who knows everything about finance. Find a bookkeeper who’s a certified tax preparer; this will afford you the opportunity to manage your books as well as file your taxes when the time comes. For the record, your taxes should not be a concern if you have a bookkeeper on payroll.
2. Managing Bank Account Balances
You should know exactly how much money you have in the bank. Many people have a checkings account as well as a savings account, and both should be reconciled at all times. Whether manually or through a cloud based accounting software, a bookkeeper will ensure that your bank accounts are up to date. We’ll dive more into late fees later in the article, but these errors will be avoided when hiring a bookkeeper.
3. Invoicing Is Easier
Getting your books in balance means you’ll be able to invoice more efficiently. This will make your business run smoother and puts you in a more professional light when dealing with customers. Whether you have one client or ten thousand, an effective bookkeeper will help you get paid faster.
4. Preventing Costly Financial Errors
We all know that bank fees, insufficient funds charges, and late fees can quickly drain your finances or the lack thereof. Sometimes in the early stages of entrepreneurship we tend to let our finances control us instead of forming a relationship with our money. According to the Consumer Financial Protection Bureau, a whopping $15 billion was paid to banks in 2016 as a result of overdraft fees and bounced check fees by Americans.
5. Managing and Paying Bills More Efficiently
Graphic designer Lyndsey Yates was forced to use credit cards to pay her rent for two straight months as a result of late payments from clients. This can sometimes seem inevitable in the world of entrepreneurship when performing services for clients, but a good bookkeeper can help you budget and prevent occurrences similar to whay Lyndsey had to deal with.
6. Understanding Your Money
Finances consist of more than a profit loss statement. Say yes and let a bookkeeper balance your books. This will give you more time to focus on building your brand and catering to clients. More than 60% of entrepreneurs have admitted that they’re knowledgeable about accounting and finances.
There’s a reason why more than 23 percent of small business owners plan to hire a bookkeeper in the next year. Bookkeeper fees are lower than bringing on an accountant, because the accountant is more specifically qualified than a bookkeeper.
For many entrepreneurs, time is a very valuable resource. When you find yourself spending hours upon hours trying to keep track of your accounting paper trail instead of doing what you love, a bookkeeper’s services would be a smart option. Wouldn’t you rather use your skills and strengths to build your brand?