When your small business is in its infancy stages and trying to grow, staying on top of your finances is vital because there are so many areas where things can go awry. Not properly managing your finances can result in your business running out of money and having to close its doors. Bookkeepers are experts in their field. You need someone knowledgeable on your side that will help keep your business on track. Looking for bookkeeping services can be hard.
It’s difficult to tell who is experienced at what they do. If you’ve recently typed “Quickbooks bookkeepers near me” in your search bar, you know how many results can pop up.
In this guide, we’ll go over the top five reasons why you need a small business accountant and bookkeeper.
1. Accurately Budget Your Finances
Around 20% of small businesses fail in their first year of business. Not having enough funding is a common reason a business fails. Bookkeeping services are important because they help you accurately budget your finances.
Your expenses and income are organized by your bookkeeper. You’ll be able to review your costs and financial resources with a clear snapshot of where your business stands.
A thought-out budget will help you:
- Plan where to spend your revenue
- Forecast your expected income
- See the difference between your business plans and reality
Budgets need to be flexible as things change. Your bookkeeper can keep you up to date on how your finances change. You’ll know when and where you need to make spending adjustments.
2. Prepare for Tax Season
Tax preparation for small businesses can be extremely stressful. If you’re not well-versed in the subject, you can miss important deadlines that cost you more money in the long run.
Having a bookkeeping service is more cost-effective in the long run than trying to file your taxes yourself. They’ll keep your books up to date each month of the year. The tax firm that does your taxes won’t have to do back work to get everything up to date.
With organized books, you’ll be able to protect your business on the off-chance you’re audited by the IRS. Not many small businesses are audited but staying fully compliant will help you avoid any costly fees. Don’t worry about having to search for an “accountant near me” at the last minute.
3. Track Your Profit and Growth
Your bookkeeper can give you a clear understanding of your small business’s profitability. One of the documents they’ll provide you with is an income statement.
An income statement can be defined as a document that reports a business’s financial performance over a specified accounting period — also known as a profit and loss statement.
You can clearly track if your business is making money and if you’re more profitable than in previous years. You can see trends throughout time and get a better understanding of how your business operates.
Bookkeepers can also categorize what you spend your money on. They can label things as:
With these labels, you can see how much money you have coming in and out. You can track where you’re spending your money and decide if you can cut back in any area.
You can also scale your company by having a bookkeeping service. Cut back or expand in certain areas based on their accounting reports. Outsourcing certain tasks help business owners plan for their business in the future.
Especially if your business is seasonal, outsourcing to a reputable bookkeeping service will help you avoid the costly expense of hiring a staff member to handle things for you.
4. Stay Organized
Not being organized can result in mistakes and missed deadlines. Your small business can’t afford to make any errors. Having a bookkeeper that regularly monitors your spending and income ensures that nothing is overlooked.
Being organized isn’t important only when it’s time to file taxes. If you ever need to apply for a loan, grant, or speak with investors, you’ll need your financial information at the ready. Don’t waste time sifting through countless documents to find what you need.
Your bookkeeper can provide you with up-to-date information that will attract investors and increase the likelihood of qualifying for a loan. You want to show other people that you’re organized and on top of your finances. They want to know that they’re making a solid business decision by investing in your company.
5. Focus On Your Business
You want your business to grow, but having your finances in disarray makes it hard for you to do that successfully. If you don’t have accurate data or numbers to evaluate, you can’t set yourself business goals. You’ll be guessing where you stand financially.
A bookkeeper can give you accurate information. Map out your company’s goals accurately and achieve the growth you want for your business.
By outsourcing your bookkeeping services, you don’t have to worry about maintaining financial records on a daily basis. Free up time during your day so you can focus on managing and running your business. A qualified small business bookkeeping company will take more than tracking expenses and income off your plate.
Focus on the strategic planning of your company so you can grow your team and finances. Create long and short-term goals based on the information your bookkeeper provides. You’ll get a clear snapshot of an overview of your business.
Find “Bookkeeping Services Near Me” Today
Bookkeeping for a small business is vital to ensuring your success. It’s not something you can do alone. Bookkeeping services are a necessary component of your small business.
If you’ve recently searched for “bookkeeping near me” in the Charlotte, NC, area, Bluefire Accounting is here to help. Contact our office today for a free consultation.