Why Does a Small Business Need a Bookkeeper?
Until your small business grows to match your dreams, you’ll multitask your way through each workday. That’s what small business owners do, but you still need a bookkeeper.
Running a small business is hard. You went into it expecting to work long hours. You knew you’d have to fake your way through unfamiliar tasks, but bookkeeping shouldn’t be one of them. We’re not just saying that because we perform bookkeeping services. We honestly believe that all small businesses need a professional bookkeeper. Here are a few reasons why.
You need a bookkeeper to track your cash flow
Bookkeepers perform their work quietly and behind the scenes but they have a big impact on your business. They set up and organize your chart of accounts. They track and record every dollar that runs through your business. Bookkeepers document cash receivables and payables, employee wages, vendor expenses, and lender activities. They document the financial details the way you would if you had the time to do it right.
You need a bookkeeper to keep accurate tax records
The IRS Recordkeeping page seems harmless enough but when you read it, it can make you a little anxious. It explains your responsibility to keep detailed financial records. It lists expected documentation and recordkeeping requirements. It calls them your “burden of proof.” That’s your duty to prove you have the right to claim certain tax-deductible expenses.
If you don’t have any first-hand experience with IRS auditors, you should know that when they ask to see your proof, they accept no excuses. Before you decide you don’t need a bookkeeper, ask yourself a few honest questions.
- Are your records accurate?
- Are they up to date?
- Would you feel comfortable handing them over to an IRS auditor?
When federal, state, local, and sales tax agencies summon you into their offices, they all want to see accurate up-to-date financial details. They can decide to take a look at your records any time they choose. If they don’t like what they see, it could mean fines, penalties, and small business headaches. The best way to give them what they want is to have a professional bookkeeper perform your financial record-keeping tasks.
A bookkeeper helps you track your success
Are you selling enough? Are your customers paying their bills? Do you have enough cash to reorder products? Can you pay your staff? Are you meeting your financial goals? These are all critical questions. If you don’t know the answers, you won’t know whether or not your business is succeeding.
You need a bookkeeper to track these and other financial details. Your bookkeeper will prepare balance sheets, profit and loss statements, and cash flow statements. These and other financial reports keep you informed. They help you evaluate your company’s progress and track your success.
Yes, You Need a Bookkeeper
At Goode Bookkeeping & Consulting, our accounting professionals handle bookkeeping, invoice management, payroll, bill pay, and other small business services. We’re dedicated to keeping your business on track for success.
To learn more about the services we provide, call us at (860) 659-6543. If you’re too busy running your company during the day, complete our online contact form and tell us the best time to get in touch with you.