In today’s world, many small business owners are looking to reduce costs and increase their profits. As a small business owner, you need accurate and up-to-date financial records so you can make the best decisions for your business.
As your business grows and take on more customers, keeping track of your sales/revenue, customer orders and business expenses becomes more complex and time-consuming. Bookkeeping is a vital part of any business, but it can be easy to push aside for more immediate priorities. Proper bookkeeping must be done to efficiently run your business.
As the business and number of business transactions grow, business owners should engage someone who can take care of this task. You don’t necessarily have to hire an accountant or in-house bookkeeper to do this for you. Many business owners outsource their bookkeeping needs because it is cheaper to do so.
Up-to-date information is key to running a profitable business.
How is your business performing?
Are you making profit?
What was the impact of the last digital marketing campaign on your sales/revenue?
How much are you spending on delivery/shipping?
Having up-to-date records will give you the comfort of knowing how your business is doing throughout the whole year.
Benefits of hiring a bookkeeping are numerous but we will consider some key benefits.
Bookkeeper will help you save time
Since bookkeeping task is time-consuming, you always leave it at the bottom of your list. Then when the tax filing deadline is around the corner, you spend valuable time trying to catch up.
Time spent managing non-core activities such as bookkeeping, is time spent away from growing your business. The time you would spend on bookkeeping can be dedicated to meeting customer requests, marketing effort and product enhancements.
Help you focus on growing your business and profit
A recent survey shows that, on average, companies’ profits increase 15% after they hire bookkeepers. You would not spend hours trying to keep your records but rather spend time to focus on getting more clients and improving customers engagements and experience.
A bookkeeper can help you forecast seasonal ups and downs, make better business decisions about your day-to-day operations, like what time of year it is best to make major purchases and when to do digital marketing campaign.
Help you save money and lower costs
Periodic reports provided by a bookkeeper can help you identify how your expenses affect your sales and revenue figures.
You will be able to identity value-adding expenses and cut down on irrelevant expenses and excesses.
Help you reduce errors and keep accurate records
A bookkeeper will ensure business transactions are recorded timely and accurately.
Your financial records will be reconciled with your business bank accounts. Duplicate and excess bank charges will be identified and corrected.
Tax season will be smoother
Hiring a bookkeeper will make your financial records ready for tax filing without having to spend days and weeks trying to update your records for tax filing.
You will not need to pay extra to an accountant to help you update your records for tax filing. In the unlikely event your small business is audited by the CRA, having accurate and up-to-date records will ensure a smoother audit process. The sooner you can get back to running your business, the better.
Help to know how to maximize your tax benefits and credits
A bookkeeper will ensure your records are kept in line with required tax laws.
Since businesses are taxed differently from individuals. Your business may be able to reduce its taxable income using certain expenses, such as home expenses/utilities, phone and internet bills, or travel expenses. Your business will be able to take advantage of all available tax benefits to reduce business taxes.
Conclusion
Recording your sales/revenue and expenses is just one part of the process, a bookkeeper will help you make sense of the numbers, identify trends and how you can apply them to your business. They will provide you with a complete up-to-date accounting records, giving you a picture of the financial status of your business and allowing you to make timely business decisions based on accurate data.
With accurate bookkeeping, you will have valuable information like how your business is performing, if you are making a profit, which marketing campaigns are successful and lots more.
Book a free consultation today on how we can add value to your business through our bookkeeping offering.
