When you first started your small business, you probably wanted to oversee the running of all aspects of it. From product or service development through to your website, marketing and of course, finances. However, the need to be in control of every part of your business, while understandable, is just not realistic.
Take the financial side of things for instance. If you have lots of experience or a special qualification in economics or business finance, then fair enough, you’re probably well-equipped to deal with your business books. However, if your expertise lies elsewhere, it may not be such a wise move to take on the responsibility of handling your business books as well as everything else.
This is where many small businesses make mistakes. They fail to see the common sense in hiring a bookkeeper, at the very least, to help them out If you have had a similar viewpoint in the past and have never appreciated why it might be worth hiring a professional bookkeeper, this blog has been written with you in mind.
In it, we will look at several good reasons why you should avoid taking sole responsibility in your business and hire a bookkeeper.
Enables You to Stay Focused on the Most Important Business Needs
Small businesses, or businesses in general for that matter, need the attention of the one in the driving seat to push the business forward. So as the owner of your small business, you need to devote as much of your time to business strategies, marketing campaigns, raising funds and encouraging sales and business. If you are trying to do all that plus calculate and monitor your books too, you may be spreading yourself too thin.
It’s Best to Leave Some Things to People that Understand Them
As highlighted at the outset, although it’s possible that you have expertise in finance or business accounting. However, it’s probably more likely you don’t. Therefore, it makes more sense hiring a professional who has studied bookkeeping and accountancy and has qualifications and certifications in that field, to look after the management of your business finances.
You will then be less likely to make spending errors or have to deal with problems that cost you more money in the long run. Your business finances will be greatly affected if you forget to pay something or miss a bill.
Helps You Establish a Balance Between Work and Life
It’s not unusual for small business owners to throw their all into their company. It’s commendable, because they want it to be a success and are doing all they can to make that possible. However, in doing so they are not allowing themselves any time for themselves or their family and friends.
If that sounds familiar to your own situation, you are missing the balance you need to avoid burning out and staying healthy.
Helps You to See Your Business from a Different Perspective
While you may think you have a good handle on how your business is doing, it can be incredibly helpful to have another person’s view of things.
A bookkeeper can keep your business finances in order and prepare reports on how you’re doing every month, where your funds are going and how much success your efforts are having, if at all. They can help you, through their number crunching, to see the bigger picture of your business.
Freedom from the Less Exciting Side of Business
For most business owners, finance is not particularly exciting. If you’re like most, you probably do not find it thrilling to pay invoices, tally up payroll and all other related tasks.
Do you know who does enjoy those tasks though? That’s right, bookkeepers. So, for that reason alone, it makes sense to pass the handling of those tasks to someone who not only does them well, but has a passion for them. And when people enjoy doing something, they are more motivated to do it well.
Ensures Payments are Made on Time
When you’re trying to run a business and juggle many different things at once, inevitably some things get left out and forgotten about. Often, this is things like those bills that you needed to pay by a certain time.
The last thing you want is your business credit or reputation for being a late payer/forgetful payer to affect your business. Having a bookkeeper in place though, can ensure that all payments are made in a timely manner and on time.
Ensures Tax Returns are Filed Accurately and on Time
Following on from the above, taxes are not something that many, if any, business owners relish dealing with. However, they are crucial. Tax returns are a necessity and filing them correctly can mean the difference between the taxman chasing after you for unpaid taxes or benefiting from a tax break that gives you a little extra spending money to put into generating sales and business.
Having a bookkeeper in your employment can ensure that the various tax requirements for your business are met and that you are paying the right amount.
Ensures Your Business Cash Flow is Healthy
While you are busy working at building your business and maintaining its success, you may fail to keep track of whether or not payments are coming in from your clients. Late payments from clients can obviously impede your business activities as you won’t have the cash flow necessary to keep driving forwards.
Having a bookkeeper working alongside you can ensure that your cash flow is managed properly. They can keep track of outstanding payments and send reminders to clients.
So, before you are too quick to dismiss the help of professional bookkeeping services, it’s worth keeping the benefits outlined above. You don’t have to take charge of every last aspect of your business, and especially as the financial side is so important to your company’s success, it pays to have a qualified person helping you with it.
That way you will always know exactly how much money you have coming in and going out.