Every business earns money and spends money. As a result, every business needs to report their income (or losses) and needs to pay their taxes. Some businesses need to pay employees and/or contractors.
This is the bare minimum reason for a good bookkeeper. A bookkeeper records and organizes financial transactions for businesses. Bookkeepers help businesses track their income and expenses, understand their financial performance, and make informed business decisions.
But is that why you need a bookkeeper? To keep your records organized so tax season is easy? Not at all. You could simply dump your pile of disorganized records on your accountant's desk and let them go through and clean everything up. Sure, you'll pay 5 times more than you might have otherwise, but it's only once a year. And still probably cheaper than paying a bookkeeper every month. Right?
The answer, of course, is no. Because bookkeeping does much more for you than have you tax ready and keeping the government happy. As important as that is.
As a business owner, how often do you ask yourself the following questions?
Is my business making money this month?
How much am I making this month compared to last month?
What's my profit margin? Am I making money because I'm working harder or because my business is more efficient?
How is my business performing compared to similar businesses in my industry?
Can I afford to buy that equipment/vehicle/inventory I need? Is it better to pay cash or get a loan?
Which parts of my business are making me the most money? Which parts aren't?
Who still owes me payment on invoices? Who do I still owe payment to?
All of these questions, and more, can easily be answered through the work of bookkeepers. It's more than just keeping your records clean. It's being able to quickly and clearly provide actionable, accurate data to help you answer the questions to have to make informed decisions on how to run and grow your business.
It's well worth the investment.
