5 Ways Hiring A Bookkeeper Can Help Your Business
by Cynthia Franklin
1. Take Off the Blindfold
If you aren’t updating your books at least monthly, it’s likely that you are “flying blind” as to the financial condition of your business. You can only pay yourself from available profits – how will you know how much you can pay if your books aren’t up to date?
It’s easy for business owners to try and wear all the hats, but accounting and bookkeeping often gets the backburner as more pressing issues come up. Plus, most business owners are not accountants. They are gifted at cooking, repairing vehicles, or other amazing talents.
How can you make sound financial decisions without accurate information?
How can you grow your business if you don’t know where it currently stands?
The answer is clear – you can’t!
Not to mention, you’ll need up-to-date financials at a minimum of once a year in order to file your taxes. It’s no fun scrambling at the last minute to get your books in order before tax time. Hiring a professional bookkeeper ensures that you’ll have both decision-ready financials as well as a house-in-order when it comes time to file tax returns.
2. Understand Your Sales
It’s important to understand your sales, or the sources of revenue for your business. You may have more than one offer, and you’ll want to maximize the products and services that produce the highest profit margins for your business.
It’s also imperative to understand sales in order to grow your business. You’ll want to know how easily you can convert prospects into actual sales. While a bookkeeper does not keep track of your sales pipeline and marketing activities, they can help you interpret your financial data and bridge the gap between sales and profits.
3. Manage Your Cash Flow
Running a business is a delicate balance of personal funds in, sales and revenues in, expenses out, liabilities out, and payments to the owner (out).
As your business grows, managing cash flow can become a real juggling act. You don’t want to keep too much cash in the business, but you also don’t want to overdraw your account.
Hiring a bookkeeper can alert you when bank balances become low, liability balances grow too high, or cash in from customers comes to a halt and you may need to focus on collecting revenue.
4. Grow Your Business
In order to grow your business profitably, you need to increase sales without a proportionate increase in spending.
To ensure that you remain profitable while trying to grow your business, it’s important to know the financial condition of your company. Each investment you make in your business – whether it’s new manufacturing equipment, hiring additional employees, or rolling out a new product or service – needs to produce a profit, otherwise, it’s just extra work for you for no additional benefit.
5. Ease the Burden
As a business owner, you have many things on your plate. You are responsible for every element of the business: sales, marketing, hiring, firing, forecasting, vision, growth, operations, and more.
When business owners try to take on more than they can handle, it’s easy to let the accounting go until it absolutely has to be done for taxes. The problem is, this doesn’t help you grow and sale your business. It also results in books that cost a lot of money to clean up due to errors.
Working with an experienced, professional bookkeeper can ease the burden, provide peace of mind, allow you to grow your business, maximize your tax deductions, save money on cleaning up the books, and much more.
In the long run, working with a great bookkeeper can SAVE you money.
Book a free discovery call today to learn more about how we can help you grow and scale your business, and end the cycle of flying blind.