One of a bookkeeper’s many roles is to help organize a business’s finances, and they do this by managing and recording financial statements, tax receipts, payroll and cash flow. If you’re a business owner, seasoned or new, and you don’t already have a bookkeeper, you’re probably struggling to know exactly where your finances stand, or where the funds are going. With no background in finance, most business owners without a bookkeeper, have no option but to try and manage their money themselves, which can have disastrous and costly consequences.
You can avoid the stress of managing your finances by hiring a bookkeeper, and free up time to focus on other, equally important key aspects of running your business. Here are three of the most important ways that a bookkeeper can help give you a clearer picture of your businesses finances:
- Keep your financial documents in good order:
There can be many different tax requirements for businesses and keeping up to date and compliant with them all can be challenging without a bookkeeper, not to mention the fact that you run the risk of incurring stiff and costly penalties. If you face an audit, a bookkeeper can make sure that you have all the necessary files and documents ready for the IRS, too.
- Help you to have a clearer understanding of your day-to-day finances
If your books don’t balance or payments are due, your bookkeeper can give you valuable insight and ensure that no bill is overdue. They will let you know exactly what money you owe and who you owe it to, along with any money that you might be owed, and who from.
- Reduce the risk of human error
When you hire a professional bookkeeper to address your finances and take care of them on a day-to-day basis, you greatly minimize the risk of human error, which when it occurs, can result in tax penalties and missed or late payments, to name but a few.
Bookkeepers can benefit businesses of all sizes in a variety of ways and can give a different perspective of the business from a financial standpoint. Not only this, but much of the work a bookkeeper handles can be tedious for busy business owners and handing those reins over to someone who is qualified to do it, can give them much more time to focus on other elements of the business.