There are many reasons to hire a bookkeeper for your business but we’ve narrowed it down to three top ones. Before we get into why you need a bookkeeper, let’s talk about what exactly they do.
A bookkeeper documents and manages a business’ financial transactions while recording them to a general ledger, balancing and producing monthly financial statements. They are responsible for overseeing:
Running your own business is a job in itself and your time is better spent focusing on growing it, not whether your bills are being paid on time or your monthly financials are being reconciled. Avoid burning out; outsourcing these business needs is crucial to creating a healthy balance of free time and work.
Imagine working a long day on all the other aspects of your business and then having to take time to learn and complete your financial necessities. If you’re not trained in reconciling bank statements, it can take hours to complete. A bookkeeper can do the same thing in about 30 minutes.
Business cash flow, accounts payable, receivable, payroll etc… Managing all of these while running your business will more often than not, leave things to fall through the cracks. Even with a business partner(s) staying abreast of all your back-office needs while trying to run your business will more than likely lead to costly mistakes.
A bookkeeper will be dedicated to ensuring all payments are received on time, avoiding late fees that can add up. Additionally, a bookkeeper will ensure you are receiving payments for the service or goods you provide, making sure you are also getting paid and your business has a healthy amount of cash in your account.
Sometimes when there are multiple business partners, disagreements in how to spend, access and allocate business funds. This can lead to tension and in turn, hurt the business in the long run. Your bookkeeper will monitor your funds when anyone needs to access them.
In addition, since your bookkeeper will get a clear picture of your business’ cash flow and needs, they are the perfect place to go for advice, particularly with tax filings. They can guide you when it comes down to tax season on how to prepare and file.
You may think you are saving on costs by doing this work yourself but it’s more likely that you’ll end up overwhelming yourself and even losing/spending money unnecessarily. Essentially your time is money! Your time as a business owner is significantly more valuable being spent on nurturing your business into a steady growth and creating a healthy work-life balance.
Greenlight Financial offers customized accounting solutions that fit every business owner’s unique needs. Contact us for a free consultation.