Small businesses often put off hiring a Bookkeeper until they’ve grown bigger, but that’s a mistake that can actually delay growth. To understand the financial health of your business, you need to have up-to-date accurate financial records. In addition, saving you time and money, a good bookkeeper helps you to manage your cash flow, plan ahead, make smart decisions and reduce any risks to the financial health of your business.
1. Save Money On Your Tax Return
Let’s start with the most obvious advantage of hiring a bookkeeper: to save money in taxes. Filing your taxes is notoriously complex and even a small, innocent mistake can result in a hefty fine. With years of training to be able to complete this process accurately don’t put your business at risk of making expensive mistakes.
2. Free Up Valuable Time
In addition to saving you money, a bookkeeper will also save you a lot of time that you can put to far better use. As a small business owner, it’s vital that you keep accurate financial records and stay on top of your accounts. However, it’s equally true that your efforts are most valuable when concentrated on your area of expertise. Hiring a bookkeeper allows you to ensure that your accounts are being managed well whilst allowing you to focus on growing your business.
3. Start-up Advice
As mentioned, many small business owners are reluctant to hire a bookkeeper in the beginning stages. However, an experienced bookkeeper will be able to provide valuable advice during the start-up stage that can accelerate your growth on areas such as:
· Key financial risks
· Budgeting
· Financial forecasting
· Growth
· Funding
· Tax incentives
· Overall financial health
Hiring a bookkeeper from the very beginning can help you build a solid financial foundation to ensure that your business is around for many years to come. They can offer unbiased, constructive criticism of your business plan.
4. Manage Cash Flow
Managing your cash flow well is essential to the growth of your business. Poor cash flow management is a serious threat to even the most profitable businesses, so it’s very important to get it right. An experienced bookkeeper in managing cash flow can produce regular forecasts to ensure that you always have enough funds to continue operations as you scale up and market conditions change.
5. Analysis
Bookkeeping helps your company generate financial statements. These statements can be used to assist you in analysing your company's strengths and weaknesses while managing the growth of your business. You can leverage this knowledge to create your unique selling point, price your services appropriately and gain a competitive advantage. Financial statements can also indicate initiatives that have or haven't worked, which can help business owners and shareholders plan for the future.
A Bookkeeper Is An Investment
It pays to hire a high-quality, proactive bookkeeper. Whilst there are many cheap services out there, you’ll see the greatest return on investment from hiring a bookkeeper who has the time, knowledge, and experience to grow your business. A good bookkeeper will do everything they can to not only save you money on taxes but to provide valuable advice, manage your cash flow, and secure the financial health of your business for years to come.
Stay on top of your financial operations and hold of your business by utilising Book Metrics Financial Solutions.