Bookkeepers do a lot more than file archiving – they can make a comprehensive estimate of your finances or a full-year forecast to keep your business healthy and successful. Many small business owners do not realize that as many as 80 percent of U.S. businesses fail within the first 18 months. Most often, one of the main reasons is the mismanagement of finances.
Despite these serious consequences, many owners are trying to save by taking care of their finances themselves. A recent report found that 53 percent of owners do not hire accountants at all, and what is astonishing is that 27 percent of these respondents simply use paper and pencil to track their cash flows.
While we must not conclude that these businesses perform worse because they do not have an accountant, we cannot underestimate the breadth of knowledge and experience that accountants can contribute.
Most people do not service their cars at home. Instead, they are taken to a mechanic who then makes sure things are running smoothly and in the face of potential problems.
It may seem discouraging to let someone on the side look at the delicate details, especially if you have previously had difficulty managing your finances. But the help of a bookkeeper will, in fact, help you to achieve your goals and ensure your long-term success.
What to consider when choosing a bookkeeper?
If you take some time to study the services offered by bookkeeping agencies, you will find that the offer is wide, ranging from single-employee agencies to large systems that can offer you many additional services. Of course, the price depends on the type of services, and depending on the size of the agency, you can expect less or more flexibility.
If you are an entrepreneur or are just starting out, you may be more comfortable with a smaller agency because of its flexibility and personal contact. On the other hand, a large system may give you more confidence, but you cannot expect daily contact with them.
First of all, make sure you are comfortable with the range of services it offers. It is also important that he understands which of the usual jobs or additional jobs, such as payroll or electronic banking, you expect him to do for you. It is very important that you define his obligations accurately so that a potential misunderstanding does not initially lead to problems in the future.
If you are dealing with import and export, catering, construction or other complex or specific activity, you can give preference to agencies that already have clients in these fields and are narrowly specialized, because they are familiar not only with the processes in your firm but also with the specifics of financial, the administrative, bookkeeping and tax side of work in your industry.
So research the market well and evaluate your needs objectively. Do not entrust small businesses to large agencies but to those that specialize in small businesses, according to Sanjay Gupta CPA.
How much does it all cost?
The cost of services is most often determined by the amount of work your future bookkeeper will have, primarily by the volume of documentation and billing and reports he produces, and not by your income.
Many agencies are willing to offer a lower price for start-ups, as they are aware of the large investments that burden every new business. Ask if they are ready to offer you a discount during the first months when the volume of documentation is also lower than what the firm will have when it reaches full workload.
With that in mind, here are five reasons why it’s important to have a bookkeeper for your company…
Get the most out of it
During the tax season, most owners feverishly think about making the most of their tax breaks. However, at the end of the year, it is too late to think about it.
An accountant can help you by tracking these potential tax breaks all year long and advising you on how to make strategic decisions to take advantage of all the benefits before the end of the year.
Avoid financial control
Another compelling reason is to avoid that tax controller. Unfortunately, most people think that a bookkeeper is someone who can handle these things only after they happen. The important thing to remember is that tax control can be easily avoided if you consult with an accountant throughout the year.
There are many reasons why a business is controlled: from too many tax filing errors to overcharging humanitarian expenditures, to goods written off. Think of it as a long-term, motivated partner who cares that everything is fiscally legal.
Save time and energy
Most entrepreneurs think a tight budget means they won’t be able to afford to hire one. But if you factor in how much time and effort you spend managing your finances yourself (not to mention the possible mistakes you might make during reporting and the losses you would suffer from poor financial decisions), the benefits certainly outweigh the cost.
Your focus as an entrepreneur should be on running your firm. Investing in a bookkeeper and hiring him or her as a current business advisor will help you maintain that focus while keeping you on the track leading you to your business goals.
Make timely decisions
Owners often say that they would like to be able to easily calculate the potential consequences of a large purchase or employment of more workers. If you always have an accountant at your disposal as your financial advisor to help you manage your budget and monitor your cash flow, this will allow you to overcome any obstacles you may encounter in real-time.
You should take a collaborative stance with him, which will allow you to make important decisions together based on the latest data.
Plan for the future
After all, one of the biggest benefits is getting some planning advice for the future. Together, you can view reports from past months and examine the seasonal periodicity of your company. This will help you determine the best time to purchase inventory and allocate funds from your budget for bigger investments to stay competitive and have a sustainable business.
Conclusion
As business owners, you are most occupied with day-to-day management. However, a bookkeeper can take a step back and look at the bigger picture objectively to find the best way to promote the longevity and success of your business.
