10 Ways a Bookkeeper Can Help Your Small Business Save Money.
When you first started your business, you may have handled the majority of bookkeeping and accounting duties yourself. This is often manageable when you have a small number of workers, clients, and relatively small streams of income and expenses.
However, as your company grows or as you plan to grow your company, it becomes increasingly important to hire a financial professional to manage your accounting records. Financial professionals and legal professionals should be some of the first people you hire while you’re planning to scale.
Professional bookkeepers can help to ensure smooth financial management and efficient operation of your business, and can potentially save you a significant amount of money and give you insights into your business you would only be able to see through the finances.
What is the cost of small business bookkeeping?
The cost of small business bookkeeping varies based on the level of service you need, ranging from basic bookkeeping to full-service financial management.
While some small businesses opt for DIY solutions, professional bookkeeping services can save you money by keeping your financials accurate, maximizing deductions, and preventing costly tax mistakes. Think of it as an investment—just as you wouldn’t hesitate to pay for marketing that brings in customers, paying for expert bookkeeping helps you keep more of what you earn and get accurate insights to learn how to grow your business with confidence.
1. Cutting Down Responsibilities to Focus on High Income Responsibilities.
As your business grows and expands, it's likely that the operational responsibilities will also increase. It may reach a point where it's no longer possible for one person to handle all of these tasks on their own. Many business owners may overlook financial and accounting responsibilities while trying to address other job duties, but this can be a costly mistake. Hiring a professional bookkeeper can free up time and allow you to focus on managing and growing your business. This can help to increase the financial success of your company and provide cost savings that outweigh the expense of hiring a professional bookkeeper. Failing to keep adequate accounting records can have serious consequences for a business, similar to those faced by a Fortune 500 company going out of business. By hiring a professional bookkeeper, you can reduce the number of stressful tasks and improve efficiency in your role as owner and manager.
2. Expertise, Competence, Proficiency, Mastery & Excellence.
Hiring a professional bookkeeper means that your finances will be managed by someone with the skills and training to do so effectively. Even if you are well-educated, it's likely that a professional bookkeeper will be able to manage and track your finances better than you could on your own. While you will have to pay for these services, the cost is worth it for the benefits of accurate, well-organized financial records and the peace of mind and efficiency provided by a professional bookkeeper. Mistakes in bookkeeping can have serious financial consequences for your business, and correcting errors can be time-consuming and costly. A professional bookkeeper will get things right the first time and can help to avoid the need for additional time and money spent on fixing errors. Most accounting professionals are trained to handle a range of tasks, including payroll, tax deductions, bill payments, and government payments, and hiring a professional can be worth more than their weight in gold when considering the value they provide.
3. Smart Hiring.
All business owners know that if they want to scale they will have to hire people who can help them. This is scary for some business owners because of the upfront cost of the investment. But, for almost all of us, it’s the only way to continue growth. Outsourcing bookkeeping operations can be an effective way for small businesses to save money. By outsourcing these tasks, you can avoid the costs and time involved in finding, hiring, and training an employee to handle financial transactions. You may be able to save even more by hiring a freelance bookkeeper instead of an accounting firm. Freelance bookkeepers are often able to keep their operating costs low, which can result in lower fees for their services. If your company has fewer than 30 employees and does not exceed $1 million in annual revenues, you may only need part-time bookkeeping services. Outsourcing these tasks can help to free up time and resources to focus on other areas of your business.
4. Accuracy & Confidence.
Outsourcing bookkeeping tasks to professionals can improve the accuracy of financial reports due to their financial expertise. Bookkeepers are familiar with different types of records and the types of information that businesses need in various situations. No more worrying about if you’re doing things correctly… This means that business owners can save time, money, and effort by letting bookkeepers handle the process of researching accounting rules, learning how to use software, and putting together financial reports. This can also help to reduce the risk of small errors that could impact the accuracy of the information. By outsourcing these tasks, business owners can focus on other areas of their business and let the bookkeepers handle the financial details.
5. Tax Time… :(
We get it. Tax season can be a stressful and time-consuming period for businesses of all sizes. Whether you have a full-time bookkeeper on staff or opt for outsourced assistance, the benefits at tax time are significant, particularly given the complexity of tax codes. Having your bookkeeper handle your taxes can save you time, money, and alleviate some of the stress associated with this process. Your bookkeeper is familiar with your company and has easy access to all of the necessary information to complete tax filings accurately. Their expertise and experience can help to ensure that your taxes are handled properly, potentially resulting in financial, mental, and physical benefits for your company. Overall, a professional bookkeeper is a valuable asset that can more than pay for itself.
6. Streamlining tax returns & audits.
Taxes are an important aspect of running a business, but small business owners may not always have the time or knowledge to keep up with tax regulations and changes. This can make it difficult to properly record expenses, store receipts, and manage tax documents. Hiring a bookkeeper can help to simplify the tax process by providing guidance and helping to create the necessary records for filing taxes. This can make it faster and easier to prepare tax returns and can help to ensure that the audit process goes smoothly if your business is selected for one. Working with a bookkeeper can provide peace of mind and help to ensure that your business is in compliance with tax regulations.
If you are a business owner ready to scale,
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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 need to grow and keep you up to date on the latest trends.
