Four Reasons Why You Need A Bookkeeper In 2020
You might be asking why you need a bookkeeper for your small business. Professional bookkeeping services are very important for the health of your business. While there are many reasons you need a bookkeeper, these are four important reasons to consider:
Tracking individual transactions can be stressful for business owners with multiple bank accounts, credit cards, and lines of credit. Categorizing the transactions and reconciling those accounts can be time-consuming as well. Recordkeeping is more than entering income and categorizing business expenses. Most of the time it involves receiving payments from customers through invoices, entering bills before paying the vendors, requesting W-9s from vendors, and paying off vehicles intended for business.
2. Preparing Accurate Financials
Accounting needs a high-level of expertise and knowledge of financial principles. Even one or two entries that are incorrectly recorded can have a negative effect on the finances of a business.
It’s important to know where, how, and when to record data. Since finalized financials are reported on either personal or business tax returns, business owners must be meticulous with how they record their transactions. Tax returns are verified and supervised by the IRS so they need to be accurate.
3. Workflow Improvement
Business owners have multiple departments to handle. That’s why having an efficient workflow is crucial to their business structure. Bookkeepers can train and guide business owners on the most efficient way to facilitate the various functions of their business.
4. Increasing Productivity
As entrepreneurs, time is the most valuable factor for our daily operations and activities.What is more valuable than saving time in your business? Yes, you are right! Nothing is more valuable than being time-efficient. Hiring an expert bookkeeper can cut down on tasks that waste a business owner’s time.
Even though these responsibilities are being outsourced, business owners still need to understand what’s going on in their business. It’s just that the detailed accounting tasks like reconciling bank accounts or entering payables should not be the owners’ main priority.
It will be more profitable and efficient for them to focus on more critical matters like creating new marketing pitches, acquiring more clients, or increasing sales.
Between recordkeeping, preparing accurate financials, improving workflows and saving time, there are lots of reasons why you need a bookkeeper. How will you spend the time you gain by outsourcing your accounting tasks?