5 Reasons Why You Should Hire a Bookkeeper

Bookkeeping can be the bane of a business owner’s existence. On a recent episode of Keeping Up with Marie Kondo, a business owner complained how much time it was taking from her doing what she loved. You know accounting is important, but there are only so many hours in a day and managing the books can end up being just one more thing on your to-do list.

But bookkeeping shouldn’t be left to the end. It can mean missed deductions, a delay in taxes, paying too much in taxes, and being unprepared for when an auditor visits. Here are 5 reasons why you should hire a bookkeeper.

Saves Time

This one seemed pretty obvious from the introduction, but time is one of the primary concerns for a business owner. You want to spend less time working the books and more time making your business grow and thrive! You may also want to take a vacation, spend time with family, enjoy the kids’ games or recitals, and think about retirement.

A bookkeeper will go through your paperwork, reconcile your bank statements, and review any discrepancies with you to correctly determine their status. A bookkeeper is also familiar with the software; instead of you agonizing over how to get it to work and entering the data, they will do it efficiently and you can spend your time doing what you love.

Be Prepared for Taxes

Tax time is always stressful. If your financials have been prepared by a bookkeeper and reviewed with you, then submission to your tax preparer is a simple process. No more haggling over receipts or going back to find documents for your accountant.

Some bookkeepers also assist in making estimated tax payments or works with your accountant to get the reports for those calculations. This can help reduce failing to pay penalties and reduce any interest on taxes owed to the IRS and state entities. Reports can also help your accountant with any tax planning as your business grows, or you look into other options, such as making large purchases.

Accurate Budget

A budget is a financial roadmap for your business. A bank balance only tells you what is in your account at that moment—it doesn’t provide a snap shot of your overall business activity. Bookkeeping properly organizes your income and expenses so instead of guessing, there are reports you can use to help target your business’s operations.

A bookkeeper will create a balance sheet, and profit and loss statement for you (and other ones, as you may require). These reports allow you to see where you are spending (or overspending) and can help you plan for future growth.

Financial Reporting

Banks and other lenders, like the SBA, require accurate and up to date financials as part of a loan application. Business owners are often required to provide reports when trying to buy or refinance a home, in addition to copies of taxes. Banks are often reluctant to lend unless it’s a sure bet and organized and prompt financials will make for an easier experience.

Additionally, every branch of government, and their various agencies, may make rule changes and regulation updates throughout the year. From what counts as overtime to annual LLC reporting, a myriad of reporting is often required. A bookkeeper will keep you up to date so you can meet your obligations.

Saves Money

Hiring a bookkeeper may seem like a large expense but in the end, a bookkeeper will save you money. They will help your accountant see deductions (and will have recorded your expenses so you are sure to get deductions for what you spent instead of underreporting because of a lack of organization). They will lower your risk of an audit, late payments, human errors, and tax penalties.

And the cost for a bookkeeper is a tax deduction for you.

All of this will help you achieve a work life balance.

There are many options for bookkeeping. Depending on the size of your business, there can be quarterly, monthly, or semiannual options. With the advance of technology, a lot of it can be done online, but without losing the human touch. Reach out to BQ to see how bookkeeping services can enhance your business and to see which option will help your business flourish.