By: Williams Wealth Creation

Jan 6th, 2023. 4 Minute Read.

Bookkeeping is an essential aspect of any business, but it's easy to put it on the back burner when there are more pressing tasks to take care of. Managing customer orders, meeting with clients, and ordering inventory are all important for keeping your business running smoothly. However, neglecting your bookkeeping can end up costing you in the long run. For example, if you try to handle your own accounting on top of managing your business, you may find that you're too busy to keep up with your books. When tax time comes around, you'll end up paying a premium to have an accountant clean up your financial records.

On the other hand, staying on top of your bookkeeping can provide you with valuable insights into your business's performance. Up-to-date financial records can help you understand how much money you're making, whether your marketing campaigns are successful, and how much you're spending on shipping. By hiring a professional bookkeeping service, you can ensure that this important task is being taken care of consistently and accurately. In this article, we'll share four benefits of prioritizing bookkeeping and hiring a professional service for your business.

Having a bookkeeper on your team can help you stay on top of your finances.

By hiring a bookkeeper on a long-term basis, you'll have someone who can handle your monthly financial reports as well as your business taxes. They will have the knowledge and experience to ensure that your tax filings are accurate and timely. In addition, a bookkeeper can provide you with the information you need to understand your business's performance and cash flow.

Businesses are taxed differently than individuals, and there may be certain expenses that your business can write off, such as utilities, phone and internet bills, or travel expenses. However, even if you're organized, you may not be familiar with all the tax exemptions and rules that apply to your business. A bookkeeper with experience in these matters will be able to help you maximize your tax benefits.

Having a bookkeeper on your team can help you avoid financial issues.

If you use accounting services, you'll have a safety net in case of financial challenges. For example, if your company needs to undergo an external audit, a bookkeeper can provide valuable assistance. During tax season, they can also help you with your returns and work with a CPA to ensure that your business is in compliance.

In addition, a bookkeeper can help you make sound financial decisions to protect your business. They can advise you on matters that might impact your business, such as a divorce or the death of a business partner. They can also help you prevent internal issues, such as employee fraud or theft. By hiring a professional bookkeeper, you can have peace of mind that your financial affairs are in good hands.

A bookkeeper can help you build your business credit, especially if you're a freelancer or small business owner.

It can be difficult for these types of businesses to get loans from banks and lenders because they are often seen as riskier clients. One reason for this is that they may not have detailed records of their activities. However, having detailed documentation is a requirement for securing a mortgage or business loan. A bookkeeper can help you create this documentation and make it easier for you to get the funding you need.

Summary:

1. Time Management: As a business owner, your time is valuable. By hiring a bookkeeper, you can free up your time to focus on other important tasks such as growing your business or spending time with family and friends.

1. Expertise: Bookkeepers are trained professionals who are skilled in managing financial records and providing valuable insights. By hiring a bookkeeper, you can be confident that your financial records are being handled accurately and efficiently.

2. Stress Relief: Maintaining financial records can be a stressful task, especially if you're not familiar with bookkeeping practices. By hiring a bookkeeper, you can relieve some of that stress and focus on other areas of your business.

3. Cost-Effective: While hiring a bookkeeper may seem like an added expense, it can actually save you money in the long run. Accurate financial records can help you claim deductible expenses and avoid costly mistakes, such as IRS fines for incorrect tax filing. Overall, the benefits of hiring a bookkeeper may outweigh the cost.

In conclusion,

having accurate financial records is critical for understanding your business's financial position. Many people don't realize the impact that bookkeeping can have on their company's growth and how hiring a bookkeeper can save money and enhance their business. Small businesses and freelancers need a solid financial plan to maintain their operations, and hiring a bookkeeper can help provide that stability.

If you're in Canada or the USA, Toronto or Pittsburgh and in need of expert bookkeeping services, consider contacting Tifones Bookkeeping Services. We offer top-tier online bookkeeping services to small and medium-sized businesses in Canada, USA, Europe and Australia.

Don't want to think about bookkeeping anymore?

Start a free on-boarding meeting with Tifones Bookkeeping Services.

Leave the bookkeeping to us, we've got you covered with your own team that is ready to cater to your specific needs.

We’ll even get your taxes filed for you.

Williams Wealth Creation:

At Tifones Bookkeeping Services, we are dedicated to providing you with the best tips and insights for starting, running, or growing your small business. Whether you are self-employed or a small business owner, we are here to offer helpful advice, services you’ll need and keep you up to date on the latest trends/best practices for business growth.