May 24, 2016
If you are the owner of a small business, it can be difficult to weigh up the pro’s and con’s of hiring a professional bookkeeping service; do you try and save money by going it alone, or do you pay out and have someone else calculate your books for you?
Here are a few pointers to help you decide:
What a bookkeeper actually does
A bookkeeper will help you with some of the day to day tasks involved with running a small business: keeping payroll up to date, submitting and following up on invoices in a timely manner and paying any bills. They will also help to track the expenses of your business, and ensure that they have all been recorded accurately ready for tax time.
When might I need to hire the services of a bookkeeper?
If someone is already doing your bookkeeping for you - even if it is you yourself - but you or your paid member of staff finds that working part time just isn’t enough to keep on top of things, then it may be time to consider hiring a bookkeeper.
Some small businesses begin with hiring a bookkeeper for several hours a week within a few months of starting a new venture, and then as the business progresses and things begin to stabilise, they start spotting trends. Business owners are then able to see more clearly where they might be able to save money, which might not have happened without the help of a professional bookkeeper.
How will hiring a bookkeeper benefit my small business?
A bookkeeper is a highly trained professional, with in depth knowledge of the ins and outs of finance and record keeping. Because of this, they can help you to avoid making potentially costly errors that could damage your small business in more ways than one.
Not only that, but they will enable you to see your business from a different perspective – you doubtless work on every aspect of your business, every day, whereas a bookkeeper will arrive with fresh eyes and a fresh spin on things - forcing you to examine certain aspects of it that may or may not be running smoothly, and to make strategic changes as necessary. It may be that you’re actually able to save money on goods and services that you didn’t think possible, or simply hadn’t noticed.
A bookkeeper will undoubtedly allow you more time to focus on other aspects of your business. When trying to cope with all of the administrative tasks on your own, it can be easy to lose sight of the main aim of the business or to lose the energy to work on building it up.
Tax knowledge is essential when running your own business, and who better to guide you through the many nuances of federal and state tax returns than a bookkeeper. Not only can they assist you in filing your returns, but they may spot the early warning signs of issues that might cause you problems in the next tax season, too. Along with their expert advice and guidance, they could help you to find deductions and other ways of gaining a larger return at the end of the fiscal year.
All small businesses will go through a series of ups and downs, and solving some of the problems that can arise, takes time and patience. Most owners of small businesses complain of not having enough time to do everything that is required of them, but finding time to update the books so that their bookkeeper can do their job efficiently, is one thing business...
For many small businesses, keeping track of, and managing their taxes is a yearlong commitment, and there are several important types of deadlines to be aware of throughout the financial year:
1099 forms for contractors, need to be in the mail by the end of January, and must be...
With April 15th very definitely behind us, most US citizens who didn’t file for an extension, have filed their taxes successfully, either alone or with the help of a tax professional. Many folks will be disappointed to discover that they owe taxes, while others will be pleasantly surprised with a refund.
Tax refunds can...