If you have started a small business, you must be juggling with day to day tasks along with business finances. If you don’t have the time to manage your books – find someone who does. For small business contracting with bookkeeping service is the best thing to do. Accurate and organized bookkeeping is crucial to any business. With good bookkeeping you are able to maintain a good financial picture of your business.
Here is how bookkeepers can benefit your business:
1. Keep track of daily transactions – Bookkeeper can track the record of day to day transactions. It saves time on data entry and easier to keep an eye on the cash flow.
2. Sales Monitoring & Reporting– There are several areas where book keeping can help in small businesses and one of them is account payable and receivable. With solid tracking, you can manage timely payment, improved cashflow, lowere receivables and reduce bad debt accounts. Some of the accounts receivale that a bookkeeper can help you with are
- A. Positing and reconciling sales on general ledger
- B. Processing accounts receivable
- C. Tracking aging receivables.
- D. Customer Invoicing
3. Helps prepare income tax return– Poor financial records will lead you to pay extra tax or underpaying your taxes. You are better placed with tax filing if you have solid bookkeeping system with all information updated on record.
4. Bills & Payables – Another area where a bookkeeper can help in small business is to track payment of the bills. Keeping control on payments and being bale to take advantage of vendor rebate with timely payment can save you money and improve the business reputation. One provider of bookkeeping services, Xero bookkeeper Surry Hills, provides this service both in person and online via the “cloud”. This could be a good addition to your workflow, since it won’t necessarily require meeting in person.
Some other payable areas where bookkeeper can help
- A. Submit invoices
- B. Reconcile payables with back accounts
- C. Monitor aging payables.
- D. Track & Pay vendor bills
5. Helps you make decisions – Every business decision made including hiring employees, expand the product line or increase production is based on financial record and if its not maintained accurately, it can significantly affect the business performance. Good bookkeeping will leave you at ease by having accurate and updated financial information.
6. Monitor success of your business– A clear financial picture is the best way to gauge how your business is doing. With appropriate bookkeeping, it helps answer question about profitability, expenditures , sales etc. It can also help you to identify which expenditure is out of control.
7. Complies with tax laws – You don’t want to pay penalty or interest due to not filing your tax return on time. Bookkeeping enables you to do all the regulatory job on time as your records are up-to-date and leaves you with no stress. In addition you need to provide tax forms to your employees depending on the requirement of the geography you are located , so if your records are unorganized and inaccurate, you will have difficulty meeting those stringent deadlines, which can affect your business and credit rating.
Many business owners consider bookkeeping as unwelcome burden and an additional expense but having a bookkeeper will provide you all the relative information and most importantly arm your accountant or your tax consultant with the most accurate information. If you have been running business and your books are far behind- act now, get a bookkeeper.