Many small businesses thrive during the holiday season, making it an exciting time to run a business. But how can owners juggle both tasks and find affordable accounting solutions for freelancers?
First, many small business owners struggle with their finances during tax season because they haven’t kept proper records. Some even use spreadsheets or haven’t connected their bank accounts, leading to inaccurate reports and potential tax audits. Additionally, owners spend about 24 days each year manually handling sales tax compliance, which can result in unexpected expenses if audited. Accounting services are the second most outsourced service for small business owners, just after IT.
Here are some reasons why small businesses should consider hiring a bookkeeper:
Detailed Record Keeping
Whether your business focuses on legal services, healthcare, or real estate, maintaining accurate records is crucial. However, managing transactions, payroll, and bank statements can be tedious and challenging. Hiring someone who pays attention to detail and is motivated can simplify this task.
Time and Cost Savings
Preparing your books for tax season can take days, and doing it yourself may cost you more in terms of time and money compared to hiring someone else. Outsourcing bookkeeping can free up your time to focus on growing your business and serving your customers.
Proper Tax Preparation
Hiring a tax consultant or bookkeeper with tax expertise can prepare you well for tax time. Different business structures may have varying tax filing requirements, and failing to meet them could lead to issues with the ATO or state authorities.
Minimising Mistake
Unless you have an accounting degree or a finance background, you likely lack the experience to fully comprehend certain aspects of bookkeeping. Hiring a professional can minimise mistakes, meet more requirements, ensure bills are paid on time, and keep your credit scores in good shape.
Your Business Needs Your Attention
You are the best person to oversee your business, so you need to be available for your customers. Nurturing your business and focusing on its growth, operations, strategies, and client relationships is essential. Invest your time and energy in your business, and leave the bookkeeping to someone else.
Built-In Support System
Running your own business can sometimes feel like you’re stranded on an island, handling everything solo. But as your business thrives or when you want more time for other aspects of your life, hiring a bookkeeper provides a built-in resource system. They can offer valuable insights, answer your questions, and guide you in areas where you need assistance. This way, you’ll learn new aspects, generate informative reports, and adopt best practices.
Important of Cash Flow
A bookkeeper plays a vital role in managing your cash flow, which reflects the overall health of your business. Your cash flow indicates the funds available for growing your business and compensating your staff.
A Smart Way to Save Money
Hiring a bookkeeper may seem like an expense, but it’s a money-saving move in the long run. A bookkeeper reduces your risk of audits, late payments, human errors, tax penalties, and cash flow problems. These unresolved issues can end up costing you much more than the cost of a bookkeeper.
Acts as a Peacemaker
A bookkeeper wears many hats, including that of a mediator between business partners, spouses, and vendors. For instance, if a dispute arises over business expenses or finances, the bookkeeper maintains accurate records, establishes clear guidelines, and creates rules for the approval process, minimizing room for conflict.
Achieving Work-Life Balance
Everyone seeks that elusive work-life balance. But if work is overwhelming you and encroaching on your precious time with loved ones, it’s time to delegate some tasks to a professional. This frees up your time to fully enjoy life’s experiences.
In Summary
Invest your time in what you love most: managing your business and achieving a satisfying work-life balance. Rest assured that your bookkeeping is running smoothly and efficiently. With a bookkeeper, you have a clear financial picture, enabling you to make informed decisions for your business.
