About 40% of small business owners say that bookkeeping and taxes are the worst part of owning a business. Accounting, taxes, and payroll take countless hours of a business owner’s time each year.
If you own a business and want help with these tasks, hiring a bookkeeper can be beneficial! Do you want to learn more about the advantages of hiring a bookkeeper?
Keep reading this bookkeeper guide for the top reasons you should hire a bookkeeper for your company!
Saves You Time
One of the biggest benefits of hiring a bookkeeper for your business is that it will save you time as a business owner! Business owners that do their own bookkeeping often spend dozens of hours each year on these administrative tasks.
Plus, it can be difficult to learn how to do your business bookkeeping if you don’t already have experience doing bookkeeping. It will take you even more time to learn the right methods of bookkeeping.
When you hire a bookkeeper, you can save countless hours! Plus, your time is valuable when you are self-employed. Hiring a bookkeeper will allow you to focus on other more important things.
Provides You With Essential Information
Another one of the biggest bookkeeper benefits is that it provides you with essential information that you need to run your business. This is also known as “mission-critical” information.
It helps you make informed decisions when you run your business and file your taxes. Because your bookkeeper will provide you with a balance sheet, a cash flow statement, and an income statement, it will be easier to understand the important aspects of your business.
Next, hiring a bookkeeper allows business owners to save money! There are many ways that they can help with this aspect of running a business.
First, a bookkeeper can help you pay less money in taxes each year. Because they are experienced in your industry, they know what expenses most businesses in the industry have. They can also help you determine which expenses are deductible on your taxes, which will lower the amount you owe in taxes.
Even hiring a bookkeeper is tax-deductible, so it can be seen as an investment for your business!
Similarly, hiring a bookkeeper can save you money on your accounting fees. Because they are working with you all year and have all of your tax and financial statements gathered, you will not have to hire an accountant to do this during tax season.
If you don’t have this information already, your accountant will have to go back and prepare these statements after the fact.
Another important reason that you should hire a bookkeeper for your business is that it can help you increase your profits! This is because bookkeepers have the knowledge and experience to do your bookworm more efficiently.
The faster your bookkeeper is able to finish your bookkeeping, the less you will have to pay them!
Plus, having your bookkeeping done earlier allows you to focus on other areas of your business that are more likely to increase your profits. When you spend too much time managing low-priority activities, like bookkeeping, it keeps you away from other more important parts of your business.
When you have a bookkeeper, they can take care of this for you while you focus on other areas that will improve your bottom line.
When you hire a bookkeeper, it is their responsibility to keep your business records up to date. Having these detailed records on hand is essential as a business owner and will help you understand and supervise your business accounts.
As was mentioned before, these detailed records are necessary when you are making important decisions for your business. For example, you can go back and look at your profits from past months to make projections for your future months!
This will help you if you ever decide to grow your business or if you are planning on making any other significant business changes.
Business bookkeeping has many legal regulations that you must follow to stay compliant with the law. As a business owner, it can be difficult to stay on top of these changing legal regulations!
However, good bookkeepers have the right training and continued education and will always stay up to date with these changes. This way, you can be confident that your business is always compliant with the law.
Plus, the bookkeeper will be responsible for the work that they do, including any mistakes they make that may affect your compliance.
Better Relationships With Investors
As a business owner, you might be reliant on loans and investors to help your company thrive. When you have the best bookkeeper, they can help you improve your relationships with your bank and with your investors and shareholders!
It allows these groups to be more confident in your business, which will make it easier to secure loans in the future.
For example, providing documentation and proof that your business is thriving may make it easier to secure affordable loans from a bank. Investors will also be interested in the health of your company and may want proof that your business would be a good investment.
Hiring a bookkeeper will make it easier to prove this to banks and investors because you will always have your detailed financial information on hand!
Easier to Audit
When you own a business, there is always a chance that you will be audited by the IRS. If you attempt to do your own bookkeeping, you may find that your financial records and accounts are messy or outdated.
This will make it difficult to get the information necessary to prove that you didn’t make mistakes with your bookkeeping.
With a bookkeeper, it will be much easier to procure your financial statements and it will make the auditing process even easier!
Identify Cash Flow Issues
Hiring a bookkeeper for your business can also help you identify cash flow issues with your company. This is because a bookkeeper handles your day-to-day financial information. This includes tracking your invoices, transactions, and more.
Because a bookkeeper understands your income and expenses, it will be easier for them to identify issues with your business performance.
If they notice an issue with your cash flow, they will be able to recommend changes to your finances that will increase your assets and lower your liabilities.
Easier to File Taxes
Another reason why you should hire a bookkeeper for your business is that it will make your tax season much less stressful! As was mentioned before, it can be difficult to hire an accountant if you haven’t kept detailed records throughout the year.
They would have to go back and prepare financial statements and gather the tax information necessary to file your taxes.
If you hire a bookkeeper, this is something that they would do throughout the entire year. They will have all the important documents gathered in one place which will make it much easier to file your taxes.
You may even be able to hire a bookkeeper and a tax specialist from the same firm. This way, they can work together to file your taxes.
When you have your paperwork in order, you will know exactly how much you owe in your taxes and it will be easier to identify potential deductions, credits, and more.
Finally, hiring a bookkeeper allows you to reduce your errors when it comes to bookkeeping! If you are not experienced when it comes to paying bills, filing business taxes, or even logging your expenses and receipts, it can be difficult to be 100% accurate in your bookkeeping.
If you don’t catch errors in your bookkeeping, it can lead to many fines and other penalties.
However, a bookkeeper has the experience necessary to do each of these tasks without making errors. This will ensure that your payments are always made on time and that there are no issues with your numbers.
Interested in Hiring a Bookkeeper? We Can Help
Why hire a bookkeeper? Hiring a bookkeeper provides many benefits to business owners. It saves them time and money, reduces errors, and more!
If you are wondering how to hire a bookkeeper or are looking for a professional tax bookkeeping company to help your business, Klean Books can help! We can help you maintain your books, taxes, and payroll and will help you save time and money.
Check out our website today to learn more about our bookkeeping service pricing and to schedule a free call with our bookkeeping experts.