Never Underestimate The Importance of A Bookkeeper
It is common for business operators to have their hands full handling most of your business functions when you are starting out. However, as your business begins to grow, handling it alone becomes a handful and you may not have the time you need to focus on growing your business. This is why as a business owner, you have to ensure you have a diverse group of people with you with various skills. With this, your employees will be able to handle the specific duties while you will have the time you need to operate and grow your business. One important aspect of ensuring a smooth and successful business is maintaining good financial records. Good bookkeeping will give you a clear indication of how your business is doing. The best option would be to engage a professional who specialises in financial accounting and can cover all bookkeeping duties. Having a dedicated bookkeeper is very important in regards to your business’s ability to survive and thrive. The following 10 reasons will further explain the importance of a dedicated bookkeeper after company setup.
1. You can focus on your core business
With a professional handling your accounting needs, you can focus on the more important income generating activities. As a business owner, time cannot be spent on daily operational activities as this only bogs you down with menial tasks that do not produce the results needed to develop your business into a successful company. Trying to perform this mind-numbing work along with your revenue-generating tasks will end up in failure. Let the financial professional work to understand how your money can be better budgeted and put to use.
2. Do not waste time on tasks you are not familiar with
As a business owner, you need to focus on the intricate details of finances and provide a product or service that enables you to make money. Neither can be neglected you cannot possibly do both. This is why specific areas of a business must be performed by professionals who are solely dedicated to handle those duties.
3. Importance of a proper work-life balance.
Building a business is a full-time job and if anything crops up in your business, you must be able to immediately drop what you are doing to rectify that problem. This type of behavior can be limited by reducing the amount of responsibility you take on as a business owner. This includes the important bookkeeping function in your business. By delegation, you will be able to maintain a well-functioning business, while still giving yourself the ability to have a personal life.
4. Learn the true health of your business
Just because the numbers look good, does not mean your business is profitable. You may not understand the figures and this is where a bookkeeper plays an important role. A bookkeeper can process the complex language of your financial records and communicate to you how your business is really performing. They can also give you suggestions about what should be added, retained, and eliminated.
5. Escape the tedious aspects of business.
Although most entrepreneurs are motivated by making money, it does not mean that they enjoy the process of keeping detailed records of that money. Let the people who find this boring work exciting handle this area of your business. It is smarter to pay for a job well done, than save money doing this yourself only to cause serious harm to your business as a result.
6. Someone to make sure all payments are on time
Operating a successful business after company incorporation is challenging and often, there are so many things going on at one time. You are so busy hustling to make money that you forget bills have to be paid to keep your business operating. The bookkeeper is responsible for handling this task so that your business can continue operating without being held back by overdue bills or late payment penalties.
7. Make sure tax filings are correct.
The tax compliance requirements that you will be forced to follow will be dependent on the type of business structure that you choose to operate. These requirements may include estimated tax payments, corporate tax payments, special procedures and forms for contractors or freelancers and various other filings. Therefore, a bookkeeper is needed who can handle tax preparation, conduct payroll, and ensure that other financial issues are properly taken care of.
8. Cash flow
Ensuring effective cash flow is important and very often, you can get so busy that you do not even realize that some of your clients have still not paid their invoices. Late payments can cause serious cash flow issues, making it hard for you to pay your vendors and to make payroll. A bookkeeper’s job will be to constantly remind your clients that they need to pay their invoices.
9. Conflicts of interest with business partners.
Most businesses have more than one partner and often this can lead to numerous conflicts, especially when handling money. These arguments can often thwart the growth of a business and a bookkeeper the best person to be the impartial arbiter to prevent or resolve these types of issues. They will be able to provide the best advice on how money should be handled.
10. Reduce the cost of financial obligations.
While many business operators may think they can handle everything themselves, this often serves to be a very big mistake. It makes no sense to try to save money only to seriously damage your business as a result. Hiring a bookkeeper makes it easier for you to perform your duties as a business owner so that your business can continue to grow.
In conclusion, while it may seem like hiring a bookkeeper is expensive and should be avoided, never make that mistake.
Having a good bookkeeper on board can keep your financial statement in good order and provide you with great advice on how to save more money while increasing your revenue and profits at the same time.