Doing the books is an obligation on company owners and keeping good books applies to self-employed and limited companies. There could be a lot of reasons you need to hire a bookkeeper or an accountant. Maybe your last one quit or your staff is overloaded. Maybe you were ripped off or are afraid you’re going to get ripped off because the person who will be looking after your books, will know your books! Or maybe you were doing your own books but no longer have the time or desire. Whatever the reason, the simple fact is you’re not getting the financial information and business intelligence you need to make accurate, timely decisions.
If you get the right person and processes in place, you get the right information. Even if you’ve decided outsourcing your bookkeeping is better than taking on the hiring risk, you need to find the right service to help you.
Signs You Need Bookkeeping?
- Budgeting – You need help with long and short-term cash flow. You don’t know how to balance the budget.
- Tax Preparation – You worry about what the taxman and what Revenue will think about your books.
- Keeping Good Books Order – Your books are out-of-order and you can make any sense of data to make better decisions.
- Data Analysis – You have the data but you need help understanding what it means.
- Growth – You have plans for growth but you don’t have clear financial track in how to get there.
- Cash Flow – You aspire to get more equipment, hire top talent, and expand but you don’t have a good handle on cash flow.
- Time and Energy – You know your time is better spent focused on the business and not the books
Reasons Why You Need Bookkeeping
- You’re too busy with other things related to your small business – and you should be
- You don’t have someone in-house with experience, or accounting knowledge
- You’re often behind in sending invoices or reconciling payments
- You don’t have a clear understanding of cash flow (which is different from revenue and profit)
- You’re spending more than a few hours per month on your own accounting
- You’re reading this article so you must have some doubt about your current bookkeeping
It’s Good For Business… 8 Good Reasons to use a Bookkeeper
1. Ensure correct tax filings.
Let’s get it out there, Taxes. The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. Depending on the type of business structure you’ve created for your start-up, you will have various tax requirements, including estimated tax payments, corporate tax payments, relevant contracts tax and other filings. Find the right bookkeeper who can handle taxes as well as payroll and other financial issues in your business.
2. Keep your focus on core business needs.
Stick to what you know. A start-up needs the attention of its owner, including his or her attention to growing the idea into a viable product or service. That means that, as that owner, your time should be devoted to strategy, marketing, funding and other key areas that require your focus over the daily operational tasks of your business. Task a bookkeeper with all the financial aspects and feel the freedom to do what you do best.
3. Stay out of what you don’t really know or understand.
Not many owners have backgrounds in finance or even a good working knowledge of accounts payable, accounts receivable and taxes. It’s better that a professional who took courses and was certified in these areas handle those aspects of the business. Mistakes will be less likely, as well as issues that could cost you more money in the long-run. Remember, if you miss a bill or forget to pay something important, this will significantly impact your business credit. Talk to Orbano about your needs and find the right fit.
4. Get a different perspective on the business.
You are the business owner and you will have a good idea about the state of your business from start-up throughout the development phase into growth stage and maintaining a business but remember it helps to have another pair of eyes on the business and advisor who can discuss the financial implications of your decisions. Your bookkeeper can put the financials in order and run reports showing how you are doing each month, where the funds are going and how your efforts are paying off (or what might need improving upon). Looking “big picture” through the numbers being crunched is an important role of the Bookkeeper.
5. Maintain cash flow.
Keep your business humming along, you have got to be so busy with growing and maintaining your business that you will need a second pair of hands to keep the money flowing. You may not realize that there are outstanding payments from your client base. Any late payments here could infringe upon cash flowy. Your bookkeeper will stay on top of things and send out reminders to make sure your cash flow remains optimal. This will also look good when it’s time to seek another round of funding because you can show positive cash flow you might not have been able to show without that assistance
6. Ensure everything is paid on time.
Between traveling, keeping the business moving forward, putting out the daily fires that pop up, such as the recent Covid-19 Pandemic and generally keeping the business balanced. You will inevitably somethings might get left out along the way and that often ends up being the bills that need to get paid. When things are not paid. You don’t want your credit impacted by late or forgotten payments, so put a bookkeeper in charge to give you the confidence that everything has been handled on time.
7. Reduce the cost of financial obligations.
Your time is money. Make sure you make this a business motto. You can be using your time toward getting new business and keeping and bringing in the revenue. Although you may think you might save money by doing everything yourself, the fact is that a professional bookkeeper actually saves you more money in the long run.
8. Calibrate a work-life balance.
While you could focus on core business needs and handle everything else in your business, the problem is you’ll have no time left at the end of the day or week for yourself or your loved ones. Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out. Get the supports to balance your work load and ensure that you optimise your time. Otherwise what is the point. All the great business successes have a successful teams.
Orbano bookkeeping will be the gatekeeper of the business, supporting you as a business owner through what potentially is a minefield.
So Why have a Boookkeper… from the time and money savings, to the focus on expertise and greater cash flow, a bookkeeper makes good business sense for your business needs. So, go start the hiring process today. Contact us