Many people think it is cheaper to start a business without a bookkeeper. To be honest the cost is the same. Especially if you will need them to backdate you records. A bookkeeper is one of the most important business partnership you will have. Make sure that it is one of the first thing you budget into your startup cost for your business. Even if you reach out for a simple consult, there are things you need to know and do to make sure your financial records stay in compliance with your state and the IRS. I have listed 5 reasons you will need a bookkeeper in hopes to help you understand the importance of this partnership.
1.Someone who can keep track of the finances
It is very important to keep track of everything coming in and everything going out of your business. It is not only to create financial reports so you can analyze your performance and spending but it also ensures you will not be fined or penalized. If you claim deductions and you do not keep the receipts for those expenses you can be asked to pay back that money if ever audited.
2.Someone who will save you time
Imagine having someone on your team that know everything about your finances and all you have to do is notify them of your spending or send them you receipts. It is much better if the business owner do not have to worry about the back office work, just worry about the front office decisions. This will save you time and give you more energy to run your business as the owner.
3.Someone that have the skills for financial reporting
As a business owner you need to have financial reports. To not only help you make financial decisions but for you to file your taxes, get loans or qualify for lines of credit. Also if you ever came across the opportunity of an investor, you will need to have your paperwork together so that you can properly show them why you are a good business to invest in.
4.Someone to help make decisions
A bookkeeper will help keep track of your finances and will become real familiar with your financial position and can assist you make real time decisions. You need someone that is keeping up to date records for you. Most of the time that person is not you. As a business owner we get too busy with other things that we feel are more important at that time. So we deal with things as they come up and sometimes find ourselves spending more time and energy with our finances at the moment we need them. It is much easier and efficient if when a decision needs to be made to simply make a phone call or send an email for some updated reports and simply make a decision.
5.Help you plan for the future
Believe it or not, your accounted can act as your accountability partner. This is a lifetime partnership. Why not invest, trust, and communicate with the person who knows your business finances and goals the best. The person that handles your finances should be trustworthy and you should be able to count on them to help you change and develop your business. They are apart of your team.
I would love to help you get started with your bookkeeping in your business. Rather you are just starting in business or you will like to start the new year out fresh. Click this link to schedule a time for us to discuss your bookkeeping needs.