6 Reasons You NEED A Bookkeeper
I met with a friend earlier this week who asked me a very simple question - Is bookkeeping really important for my business? How much does it matter REALLY?
Naturally the answer was clear - of course bookkeeping matters!
But why? What value does it bring to a small business? Many accountants do taxes, so why would your small business need to hire a Bookkeeper as well? Isn't it redundant? Well, I worked in an accounting office for awhile, and I can tell you that Accountants are far less receptive to your shoebox full of "records" than Bookkeepers are. But there's more to it than just that. There's more to it than just taxes. Here are some really good points to remember when trying to decide if having a Bookkeeper is really important for your small business.
1. Bookkeeping can help you plan ahead.
You can call it budgeting; it is all the same. Forecasting your business needs ahead of time and planning for purchases and other business requirements becomes a lot easier with an effective bookkeeping system in place.
2. Bookkeeping will help your small business meet deadlines. Making timely payments for loans, rent, bills, taxes etc. takes a lot of focus and organization for an individual, let alone an entire business. Having your books in order means you will save money on interest and other fees that may be incurred if you forget a due date.
3. Cash flow management is nearly impossible without proper bookkeeping.
No business can stand the test of time without effective cash flow management. And effective cashflow management requires your bookkeeping to be top notch.
4. Bookkeeping will help you evaluate business performance. Maintaining good records will make it easy to tell if your small business is flat lining, depreciating or growing. When you know the performance level of your business, you can strategize and put appropriate plans in place.
5. Bookkeeping will help you envision the future.
It provides the tools and information to assist you in setting and evaluating goals.
6. Bookkeeping can help you to know when it’s time to bring in extra help or increase your employee base.
Wondering if you can afford to hire someone to bring you coffee each morning? Or maybe someone to clean your office? Check your books (or ask your Bookkeeper)!
Without question, bookkeeping is an integral part of succeeding as a small business. It is a lot of hard work, but with the right team in place to help you it can lead your business down a successful path to a sustainable future.