What’s the one task 58% of small business owners reported they hate doing the most? You guessed it, bookkeeping. If you’re reading this, chances are you’ve been trying to do your own bookkeeping and you hate it. This is why it’s critical to understand the importance of bookkeeping with a professional.
If your business needs some help in this area, we’re here to help. We’ve got some pretty good reasons why hiring a bookkeeper could be one of the best things that ever happened to your business. Let’s jump in and see if a bookkeeper is a right fit for you.
What is Bookkeeping?
Bookkeeping is the process of tracking and recording financial transactions. The bookkeeper is responsible for maintaining financial records and preparing financial reports, which are often required by business owners or investors as part of their accounting duties.
The role of a bookkeeper is also expanded to include filing tax returns, paying bills on time, and following up with customers who have not paid their accounts in full. Although you might be tempted to think that the most important thing is learning how to do it yourself, that’s not actually true.
Not only is bookkeeping difficult and time-consuming, but it also takes away from your core business activities. The truth is that bookkeeping isn’t an easy task for anyone who hasn’t been trained in this area of finance and accounting.
Why Use a Bookkeeper Instead of Doing It Yourself?
If you’re like most entrepreneurs, you probably have a lot on your plate. You’re busy running the business and making sure everything is going smoothly. You may even be trying to find time in your busy schedule for things like marketing or recruiting new employees.
But what about keeping track of all the numbers? Do you really want to spend hours each month looking at spreadsheets? There are plenty of good reasons why hiring a bookkeeper makes sense for most businesses these days.
Bookkeeping involves more than just entering numbers into spreadsheets or apps. It also includes understanding what those numbers mean and what actions should be taken based on them. In addition, once all those numbers are entered into their appropriate places within your financial system(s), someone needs to maintain them regularly so they’re accurate at all times.
How Does Bookkeeping Grow Your Business?
The benefits of using a bookkeeper are almost endless. With a bookkeeper on board, you can focus more on growing your business instead of worrying about mundane tasks like payroll or accounting. That means you have more time to spend doing what matters most.
You’ll be shocked by how much time and money you’ll save by automating processes that used to take hours every week. Think about how many other things you can do for your business in this time. Bookkeepers will work with you to make sure all of your paperwork is up-to-date and accurate so there’s no confusion or mismanagement going forward.
Bookkeeping is important for businesses of all sizes, but especially for small to medium-sized businesses. Bookkeeping helps you to know how much money is coming in and going out, as well as what your business is earning and spending on a daily basis. It also helps you to know where your business stands financially so that you can make decisions about how best to grow it.
Whether you’re just starting your own business, or you’ve had it for years, bookkeeping is vital. Bookkeeping is the only way to have an accurate picture of your finances at all times. In order to do this, bookkeepers must be able to understand accounting software and use it effectively.
This means that they need training in how to use various types of accounting software. Bookkeepers also need extensive knowledge about tax laws so they can file accurate tax returns on time every year. It’s impossible for you to keep track of this on your own.
Accounting vs Bookkeeping
You may have heard the term “bookkeeping” and thought it was something different than accounting. And while they’re both related, they actually mean very different things.
Bookkeeping is the process of recording transactions and financial data. This includes recording sales receipts, payroll expenses, bank deposits, and more. Bookkeeping is more detail-oriented.
Accounting is the broader field that includes analyzing financial statements, preparing tax returns for clients, or preparing financial reports for investors or regulators. Accountants also make sure all this information gets stored correctly so it can be accessed later on when needed by management teams or shareholders.
Bookkeepers Become Part of the Team
Bookkeepers are the record keepers of a business. This makes them vital partners and part of the team. They are responsible for keeping track of all financial transactions. Bookkeepers are often involved in financial reporting and analysis and may also assist with payroll and tax preparation.
What you may not have realized is that this also helps with business planning, marketing, administration, inventory control, and more. Great bookkeepers are flexible enough to adapt their skillset as needed by each business they work for. Before long, they will be a valuable member of any team.
Book Bookkeeping Services Near Me Today
While you may know the importance of bookkeeping, it may be hard to get started. Many small businesses don’t have the resources or knowledge to do this alone. Hiring a bookkeeper can actually save you money, time, and stress.
We know all the latest software trends and tax laws which means you don’t have to.
To get started with professional bookkeeping services, fill out the contact form here. We’ll help you spend more time growing your business and less time on your books.