Bookkeeping is a vital part of any business, but it can be easy to push aside for more immediate priorities. Customer orders to fill. Clients to meet. Inventory to order. These are things that must be done to keep your business running. Bookkeeping is easy to push to the side.
However, delays in managing your books can end up costing you. For example, if you do your own accounting on top of managing your business, you’ll find yourself behind and wasting time when it’s time to file your taxes. You’ll end up paying a premium to have an accountant clean everything up at tax time.
Information is key to running a successful business. How is your business performing? Are you making money? Was that digital marketing campaign successful? How much are you spending on shipping? Having up to date books will give you the comfort of knowing how your business is doing throughout the whole year.
In this article, we will share four ways you can benefit from making this task a priority and hiring a professional bookkeeping service for your business
They help you monitor your finances
If you hire a bookkeeper for the long term, you will have someone to take care of both your monthly financial reports and business taxes. They will have the context needed to make timely and accurate filings during tax season. Your CPA bookkeeper will also give you the information you need to understand your business performance and cash-flow.
They know how to maximize your tax benefits
Businesses are taxed differently from individuals. Your business may be able to write off certain expenses, such as utilities, phone and internet bills, or travel expenses. However, you could be the most orderly person in the world, but if bookkeeping is not something you do for a living, you could overlook one or two benefits that you can take advantage of. Your CPA bookkeeper will be more knowledgeable in the tax exemptions and rules that apply to your business.
They keep your business out of financial trouble
If you are subscribed to accounting services, you will have a safety net for financial challenges. Should your company need to undergo an external audit, you will benefit from having a bookkeeper. During tax season, they can provide some insight regarding your returns and collaborate with a CPA to ensure your business is in the clear.
They can also make sure that your business habits will not get you into difficult situations. Your bookkeeper will advise you on financial matters that might affect your business, such as a divorce or the death of a business partner. A professional bookkeeper will protect you from internal issues that can range from employee fraud or theft.
They can help you build your business credit
If you are a freelancer or a small business owner, you may find it hard to get loans from banks and lenders because small entrepreneurs are viewed as riskier clients. For one, they often do not have detailed records of their activities. In fact, detailed documentation is a requirement in securing a mortgage or a business loan, and your CPA bookkeeper can take care of this for you.
Understanding your financial position is directly affected by how accurately you keep your books. Many people do not understand how bookkeeping can impact their company’s growth and how hiring a bookkeeper can be a way for them to save money and enhance their businesses. Small businesses and freelancers need the stability of a sound financial plan to help them sustain their activities. Hiring a bookkeeper will greatly contribute to that.
Author: Ben Kinden
Original link: https://www.kindencpa.ca/4-reasons-you-should-hire-a-bookkeeper-for-your-business/