As a business owner, what’s your strategy come tax time? Do you groan at the pile of receipts and documents that you have to sort through and file? Do you start going cross-eyed staring at spreadsheets and trying to figure out accounting software?
Let me tell you: that is NOT the way to do it!
As a small business owner, you need accurate and up-to-date financial information so you can make the best decisions for your business. You might be hiring employees, taking on more clients, and driving sales—all while attempting to track your business expenses and ensuring your books are accurate? But wow, that’s complex, time-consuming, and taxing (see what I did there?).
So, here are five reasons why it’s helpful to have a bookkeeper… and a bonus sixth reason for working with a Profit First one!
Stay focused on your business needs
Between growing your idea into a product or service, building your strategy, marketing your offerings, securing funding, and much more—your business requires your full attention. Entrepreneurs do it all, but bookkeeping doesn’t have to be part of that juggling act. To successfully grow and develop a thriving business, it’s important to focus your energy on what matters most: your operations and vision.
Save time
Time is money, and bookkeepers can help you save both. Because bookkeeping and other financial tasks are so time-consuming and tedious, they likely live at the bottom of your list. So, when tax filing deadline creeps up on you, you might waste more valuable time scrambling to catch up. Does this sound all too familiar?
Being tied up with trying to run your business AND balancing the books leaves you little to no time at the end of the day or week for yourself or your loved ones. A professional bookkeeper can help you maintain a healthy work-life balance to stay healthy and avoid burnout.
Identify cash flow issues
Having a bookkeeper provides a different perspective on your business. Organizing the day-to-day recording of your invoices, receipts, and other transactions, I have a good handle on your income, expenses, and spending habits. Not only does a bookkeeper put your daily financials in order, but I also run reports to show your monthly performance, where the funds are going, how your efforts are paying off, and how you could improve. We’re here to paint the big picture of your business by crunching the numbers.
Ensure everything is properly filed
Remember when I said a bookkeeper saves you time? A big part of that is you not having to figure out how things work like tax requirements and payments or triple checking that you’re filing everything properly. I ensure that everything is paid on time, invoices are squared up, and collect your paperwork to make it easier to prepare accurate and complete tax returns. No one wants to get audited or have the taxman after them just because you forgot those quarterly or annual tax filings.
Which leads me directly to the next point…
Stay out of financial trouble
When you have a bookkeeper who knows what they’re doing and does it well, you reduce the level of risk for human error, guesswork, missed payments, and financial obligations. AKA—I can keep you out of CRA jail.
Along with filing things properly to avoid any government or legal trouble, having a better understanding of your cash flow also provides a safety net for potential financial challenges. Should your company need to undergo an external audit or find itself in a crisis or difficult situation, a professional bookkeeper will have the necessary statements to keep you in the clear and advise you on internal issues.
Pay yourself first!
Having a bookkeeper on your team is good, and having a Profit First one is even better! Along with all of the reasons mentioned, having a Profit First bookkeeper taking care of your business finances ensures that your company is profitable and that money is flowing where it needs to be. Beyond simply doing your taxes and reconciling your books, I empower you around your finances, help you maximize profitability, and achieve your goals. There is nothing more frustrating for you as a business owner than constantly being reactive to cash flow surprises, so I can help you become more realistic and cautious about what you set aside for expenses.
With the Profit First methodology, I shift your mindset to pay yourself first. I maintain detailed records to help you cut out and be more careful with your expenses, make your business immediately profitable, and identify opportunities for new and consistent profit growth.
Sounds good? Let’s get started! If you’re ready to put a professional Profit First bookkeeper on your team, or you want to dive deeper into how it could benefit you, book a meeting with me! I’d love to hear about your financial goals and how I can get you there.
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