Did you ever hire a bookkeeper to help you keep track of your expenses and tax obligations? If not, find out why now may be the best time to do so.
Bookkeeping is an essential component of any organisation. To focus on other tasks, such as marketing, attending client meetings and completing customer orders, you could sometimes end up putting bookkeeping on the back burner. Although prioritising those activities may make sense because they keep your company going, ignoring bookkeeping is unwise.
Delays in bookkeeping can wind up costing you money. For instance, you will waste time and get behind when tax season comes if you prioritise sales over accounting and managing your business. As a result, you would need to find an accountant to sort things out in time for tax season at the last minute — and this can get a lot more expensive than the cost to hire a bookkeeper.
Making a decision to get a bookkeeper shouldn’t be too hard, especially since you can hire one on demand or on a temporary basis. You can also hire a bookkeeper online or through the usual channels.
Need more reasons to hire bookkeepers? Here are four more that could help you decide.
1. Get paid faster or on time
You’ll be paid more quickly if a competent and trustworthy bookkeeper manages your accounts receivable. The goal here is to make sure that billing data is promptly and accurately captured.
To build an image of confidence and professionalism with your clients, you need to send timely, correct and consistent invoices.
2. Ensure the timely payment of bills
During the course of your regular business operations, some things may be overlooked. These could be outstanding invoices — which nobody wants because untimely or late payments can harm one’s credit.
If you don’t always keep thorough records of your business activities, you may be viewed as a riskier client by banks and other financial service providers. The likelihood of securing funding will be higher if you hire a bookkeeper to make sure all records are maintained and expenses are taken care of on time.
3. Maintain a constant cash flow
Companies that hire bookkeepers usually have an easier time managing their cash flow.
If you’re too busy to notice outstanding payments and send reminders to your clients, note that any late payments could negatively affect the cash flow you need to keep your business running.
When you hire a bookkeeper, they can take care of collections (and more) by sending reminders and preparing cash flow statements. This way, you’ll get paid promptly and always have cash on hand to operate your business. In turn, this will help to create a good impression of your business and help you secure more funding when you need it.
With a bookkeeper’s help, you can show a positive cash flow that you might otherwise not be able to prove without their assistance.
4. See your business from a different angle
Even if you think you have a decent understanding of where your business is at, it can be helpful to have a second opinion or a different perspective.
Your bookkeeper can organise your finances and generate reports that illustrate how well you’re doing each month, where the money is going, the results of your efforts, and the areas you might need to improve upon. Through the analysis of crucial numbers, you’ll get the big picture so you know where your business stands and plan accordingly.
So, what are you waiting for?
Hire a bookkeeper today!
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.