Is your business growing? Are you taking more customers, and hiring employees? Keeping track of all the business expenses and ensuring your books are accurate becomes more complex and time-consuming. The sales, expenses, salary payments, and any other money that goes in and out of your business are a lot to keep track of while running a small business. If you stay organized and document every transaction, you will keep your books up to date, be better able to plan ahead, reduce your risk of cash flow problems, eliminate the stress of filing tax returns, and you’ll have a better chance of being able to borrow money for your business. Are you sick of spreadsheets or teaching yourself how to use accounting software? Would you rather spend that time improving your business? The average time a bookkeeper can save you weekly is about 10 hours. Any time spent managing non-core activities like bookkeeping is time spent away from growing your business. The time you would spend on bookkeeping can be dedicated to your business development. You will know if you need to outsource if you are paying penalties because of late payments or missing important forms to be sent to the government.

Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. They’re always taking the pulse of a business. Most often, their reports go to business owners and managers to help them make decisions. Some bookkeepers, however, are actually involved in strategy development. Using a bookkeeping service that keeps your books up-to-date monthly means that they will be able to spot trends in your spending, catch duplicate or unnecessary charges, and point out places where your spending isn’t in line with industry trends. Processing your receipts, expenses, and payments is just one part of the bookkeeping job. They develop a system that organizes your sales, purchases, payments, and receipts. They record the information and help you make sense of your numbers. You will receive a year-to-date record, giving you a picture of the financial health of your business. The bookkeeper helps you be in compliance by protecting yourself in case of an audit and if you ever want to sell your business down the line you will need accurate bookkeeping.

A bookkeeper can put a process in place that helps keep an eye on your invoices. They will send out reminders if a bill is late, will make a phone call, or issue a late fee penalty. They will also keep you on top of your payments. All your financial obligations will be paid on time so there will be no penalties.

A bookkeeper will help you understand your business income and expenses and get a handle on your financial situation. They will help you identify spending patterns and sales trends. They will help you with the best time of year to make major purchases if they are needed. They will help forecast seasonal ups and downs, ensuring you have access to capital during the slow months and avoid taking out too much money during good months.

Hiring a bookkeeper who can also do your taxes will ensure you have an update on your accounting records and return fillings. This will provide you with an interim or year-end financial statement, giving you a clearer picture of your business’s financial health and an advanced view of what your annual tax obligations may be. Having that paperwork in order makes it easier to prepare accurate and complete tax returns.

Having accurate and up-to-date records will ensure a smoother audit process. You should have peace of mind knowing that if the auditor comes calling you do not have to worry about getting your books organized and providing your compliance with program guidelines. If your books are not in order, non-income items can be taxed as income and legitimate expenses may be disallowed, among other problems.

With a bookkeeper, it is easier to secure loans from banks and other creditors. If you can clearly outline past performance, lenders can be assured that you have a solid history and a good handle on your business finances. When the time comes to sell the business, a good financial record demonstrates the value of your business to prospective buyers.

A bookkeeper and tax agency keep on top of tax credits. You want to make sure you are taking advantage of every possible tax deduction available. The more you can claim, the lower your tax bill will be. The best bookkeeping solution is a partnership between your bookkeeper and tax specialist to provide you with the best financial strategic planning for your business.