Everyone knows that bookkeeping is essential for the long-term success of your business. However most business owners have little time, or inclination, for routine administration involving things like bookkeeping and tax records. And why should they? Your time could be much better spent doing the day job or drumming up new business.
A bookkeeper can do a lot more than help your business with day-to-day accounts. A bookkeeper is someone who records the financial transactions of your business, but they also:
- keep track of sales, purchases, payments and receipts
- work on the design maintenance and review of internal business processes
- organise, collate and record financial data on a day-to-day basis and store this information in general ledgers
- record the financial information of your business in a standard way, so that accountants can also access it.
Here are 7 reasons why you should consider hiring a bookkeeper.
- Time is money – as a business owner you need to weigh up the time and energy you would spend on the bookkeeping function against strategic business elements you could otherwise be focusing on. By outsourcing your bookkeeping you can add value and free up time to focus on what really matters to grow your business.
- Cash is king – without up-to-date bookkeeping and financial information at your fingertips then it is hard to manage and optimise your cash flow. Your bookkeeper will ensure payments are made on time and can identify when cash flow is tight and perhaps funding is required.
- Working together with your bookkeeper and your accountant, and using a cloud accounting software package like Xero, you can log in online anytime, anywhere, from your Mac, your PC, your tablet or even your phone and see up-to-date financials.
- Eye opener – professionally produced monthly and annual sets of accounts are the window into your business, allowing you to focus on areas of the business that require further work, or reviewing data that doesn’t seem quite right. For example, if fraud is occurring anywhere, you will be able to spot it before it gets out of hand.
- Resolve conflicts with other business partners – an impartial person is key to stopping business partners withdrawing money when they want it and arguments over how money should be spent.
- A different perspective – running your own business can often be a very lonely affair, even if you have plenty of employees around you. It is good to have an extra person on your side, who has direct experience working with other small businesses and understands the financial situation and pressures you face.
- Reduce the cost of financial obligations – although you may think you save money by doing everything yourself, in reality a professional bookkeeper actually saves you more. With the expertise of a bookkeeper, there is a reduced level of risk for human error, missed payments and tax deadlines.
If you would like to discuss our bookkeeping services, we would be delighted to hear from you.