Seven Reasons to Hire a Bookkeeper for Your Small Business
Bookkeeping is the process of recording financial transactions in an organization. Detailed bookkeeping helps companies track their revenue and investment. The bookkeeper’s role is to manage the financial records on a day-to-day basis. Bookkeepers should be comfortable to process large volumes of transactions related to sales, purchases, bill payments, inventories, accounts payable and receivables. In small business bookkeeping, bookkeepers may have to take on additional duties such as meeting with various legal and bank counsels. For a small business, having an in-house accounting department is not economically feasible.
In addition to managing dozens of obligations, you can’t handle the burden of managing the finances of your business.
Hutchinson & Company provides financial management, tax preparation, financial consulting and basic accounting services to small businesses in Calgary. We have over 25 years of direct accounting experience that will support you and your business.
When Should You Hire a Bookkeeper?
Ideally, it is best to hire someone to supervise your daily financial tasks shortly after you start your business. You can focus on what you do best rather than think about business accounts and receipts. You might be able to do the job by yourself at first, but your business could get hampered when the paperwork starts to pile up. A bookkeeper will help you save your time, share insights and manage your cash flow.
Seven Reasons to Consider Hiring a Bookkeeper
Poor bookkeeping practices can lead to irregular entries of receipts, payments, income and expenses which can negatively impact your business. Here are some reasons why hiring a bookkeeper is important:
1. Time Management
Spending time looking into your finances will take away valuable time that could have been spent on creating strategies to promote your business. As a business leader, you have to come up with strategic decisions, build a team and manage the daily tasks of business. Hire a bookkeeper at the earliest to manage your finances.
Invoicing is crucial for your business as it helps maintain a steady cash flow and forges significant connections with your clients. The standard procedure is to submit your invoices on time. Your revenue can take a back seat if you miss out on any of these invoices. Another concern is your clients missing out on deliverables that can lead to a major cash shortage. To avoid all hassles of invoicing systems, it’s best to hire a bookkeeping service.
3. Payroll Management
Payroll is another significant area you will need help with. In a small business, working closely with partners will buy you extra days to resolve a missed paycheck or correct possible errors. To take command of your payroll and establish timely paycheck management, you have to hire a small business bookkeeping service.
4. Bill Payments
With a small business, you have to pay for utilities, services and retailers on a regular basis. Missing a payment will significantly impact your business partnerships.
A bookkeeper has the knowledge and skills to handle your finances efficiently. An individual having the working knowledge of accounting services such as cash flows, HR issues, accounts receivable and accounts payable will be an asset to your business.
6. Tax Filings
Depending on your business type, whether you are a contractor, freelancer or in corporate business, you will have to file annual forms accordingly. It’s best to find a bookkeeper who can handle your business taxes and other financial issues with efficiency.
7. To Save Money
You won’t save much when you perform bookkeping by yourself. Eventually, you will have lost too much time noting down receipts and expenses when you could have used the time to contemplate your earnings. A professional bookkeeper will be able to make the necessary modifications if there are any changes in tax laws and regulations affecting your business.
Read our blog - Benefits Of A Business Advisory Service – to plan the long-term goals of your business.
Hire a bookkeeper to ensure your business makes better profits.Hutchinson & Company provides fixed fee, classic, advisory services and small business bookkeeping in Calgary. Contact us for financial and bookkeeping assistance today.