Updated: Feb 25
So, you are careful about major decisions with your small business. Rightly so. No small business owner wants to pay for something that they don’t need. Hiring a bookkeeper often falls into this category because so many entrepreneurs believe they can either worry about the detail later or figure it out themselves. Outsourcing your accounting comes with plenty of benefits. Knowing those benefits is an important aspect of starting AND running a small business.
Time Management for the Business Owner
The strongest argument for a business owner to outsource bookkeeping is to free up time to work on actual business operations. Handling the books with little to no experience makes the process longer. Too much time spent managing your financial records takes time away from developing & growing your small business, forging strong relationships with customers, or devising long-term strategies. Revenue-generating activities help businesses grow, so it’s important to spend enough time on them. A professional bookkeeper can easily take care of your books, which frees up your time for these responsibilities.
We know that finances influence the decisions you make as a business owner. Having a strong understanding of the current financial status and the potential financial impact of different business decisions can and probably will affect your growth. By using a bookkeeper, your small businesses will have better access to your financial information. A bookkeeper will regularly manage and create your company’s financial reports to keep your information up-to-date and readily available. You may or may not know which reports to generate or how to create them effectively. Or more likely, your bookkeeping tasks will fall behind when you get pulled in the different directions of running your small business. This makes it difficult to review your current financial information and effectively make those important decisions.
Financial Reporting Accuracy
A bookkeeper will have financial expertise, which means this will increase the accuracy of your financial reports. A good bookkeeper will be familiar with the type of information businesses need in different situations. Instead of spending precious time researching accounting rules, learning how to use the software, and putting together your own financial reports, your bookkeeper can handle all of this for you. And here it is again in another form… that saves you time, money, and energy AND can reduce the risks of small errors that skew your data.
Efficiency of Tax Return or Audits
Finally, your taxes play a large role in running your business. As a small business owner, you may not have the time to keep up with the latest tax regulations and changes. You may be unsure of how to record expenses, store receipts, and manage necessary tax documents. Working with a bookkeeper can simplify your tax time because a professional bookkeeper can provide the necessary advice and help to create the required records for filing your taxes. That will make it faster and easier to prepare your tax returns, and in the event of an audit, provide you with well-organized records to help the process to go smoothly.
Hiring a bookkeeper for your small business will save you time, money, and frustration. Bookkeeping services from a qualified bookkeeper will allow you as the business owner to focus on running your business and acquire accurate financial reports so you can make those necessary quick business decisions. In addition, and maybe more importantly, you will obtain a valued business associate that will help make you the business owner even more successful.