Bookkeepers are a vital component of any business. They add value as bookkeepers are not just crunching numbers, but providing a full spectrum of financial tracking, documentation, and reporting services. For those who aren’t sold on the idea of outsourcing your bookkeeping you may think, why hire a bookkeeper when I can do it myself? Below you will find helpful information on the benefits of hiring a bookkeeper and signs that your business may be in dire need of one. So, why hire a bookkeeper?
Why Hire a Bookkeeper: Top Benefits
With business growth being at the forefront of every business owner and entrepreneur’s mind, hiring a bookkeeper is a necessity. Consider the following benefits of hiring a bookkeeper.
Depending on the size of your business, bookkeeping tasks can take between 15 to 25 hours (or more!) each week. This can be a major time sink that diverts you from more productive tasks. It’s important to delegate clerical tasks as the amount of time you save can be diverted to growing your company.
Bookkeepers are professionals skilled in a broad spectrum of financial services. They understand the ins and outs of financial data and software, and can problem-solve issues quickly. Having an efficient professional conducting your business’s bookkeeping can save you a lot of time and money.
Making sure that all of the business bills and taxes are paid on time can help you save money. However, hiring a bookkeeper can help you better understand your finances so you can readjust your business decisions. Maximizing business tax benefits, reducing spending, and diverting funds to more profitable areas in your business will not only help save you money, but may help you increase your overall profits. Bookkeepers can provide curated reports based on your requests and you can utilize that information to make better business decisions.
Signs Your Business Needs a Bookkeeper
There are some telltale signs that your business may need a bookkeeper who can help you reap the many benefits listed above. If any of the following sounds familiar, consider hiring a bookkeeping professional.
Unpredictable Cash Flow:
If at any given time you don’t know the status of your business’s cash flow, you may be in trouble. Bookkeepers manage cash flow statements that allow you to know how much people owe you, in addition to what you owe other people at any given time. This can help you with short- and long-term financial decision-making, which is integral to the success of your business.
Sales and Profits Fail to Match:
If your sales have increased, profits should surely follow. If this doesn’t happen, you need to focus on increasing your profit margins. A bookkeeper can help you determine where to cut costs and what the problem areas are so you can make effective financial decisions. This is a major benefit to hiring a bookkeeper as research has shown that businesses increase their profits by an average of 16% after hiring a professional bookkeeper.
This is not in reference to paying your taxes on time, but specifically about the tax advantages for businesses. Small business tax deductions can save you a ton of money. Part of a bookkeeper’s job is to track your expenses, but they are also responsible for helping you understand where to save money. If you are not utilizing the deductions that have been created specifically for businesses like yours, there may be more aspects of your business that are falling through the cracks and costing you money.
Hiring a bookkeeping professional can take your business to the next level. However, bookkeepers can also help save your business from bankruptcy. Whether your business is flourishing or just barely hanging on, a professional bookkeeper can make a huge difference in terms of success. Contact Indevia Accounting for any of your professional bookkeeping needs. They offer a wide variety of financial accounting services that can help you achieve all of your business goals.