Getting Down To Basics with Accounting

Why It’s Smart to Hire a Bookkeeper for Your Small Business 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, it’s better to avoid the risks. Then again, even if you are good with numbers, doing your own accounting can make you lose 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?” As you decide, consider the following advantages of hiring a professional bookkeeper:
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Saving Time
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As an entrepreneur, you know how important your time is. Time you need to use to make your business profitable. If you were to do your own bookkeeping, and considering the fact that you are an amateur – which means you’ll probably be low on efficiency – how can you focus on your day to day operations? Time isn’t anything like energy. You can really lose it. Clearer Finance Perspective How much profit is the business making? How much of it is actually yours? With a bookkeeper, you will be able to get a picture of your business finances anytime you want. A bookkeeper can pull up business reports and actual figures. There’s be no guessing games as to how the business is financially going because you will get facts. No Stress Tax Filing No entrepreneur likes doing taxes, but it remains a legal obligation. With a bookkeeper, you don’t only get the numbers, but they will also complete your forms, file them and take care of your tax fund. AR and AP Management When you leave bills and loans unpaid on their due dates, you need to pay more in interest and penalties. If this happens often, you will have tied up capital and a limited cash flow. Just by hiring a bookkeeper, you will be able to increase your profitability through the proper management of your accounts. Check and Balance If you have a business partner, things can get complicated unless you have a system of check and balance in place. Believe it or not, having a bookkeeper can spare you from unnecessary strain on your personal or business relationship. By letting a third party check into your business transactions, you won’t have reason to doubt whether sales are being reported properly, or whether marketing is spending too much money, etc. Expert Bookkeeping Advice What percentage of the earning must be devoted to paying off debts? Will you be able to afford a new branch? These are some of the most common decisions you need to make as entrepreneurs. While not all bookkeepers are finance experts, their business training and exposure can offer you helpful insights.