One of the things that fills most small business owners with dread, particularly if they are not a financial background, is their accounts. No-one is going to say that keeping accurate accounts is easy. That is why you need to hire a professional bookkeeper. As well as freeing you up from worrying about the money side as much, there are quite a few important benefits to hiring a bookkeeper.
Organise and Manage Your Accounting
Bookkeeping is considered by many to be the foundations on which all other building blocks of your business are place. Regardless of how many people you employ, how much money you make or spend – bookkeeping is important. Without having bookkeeping, it’s not an exaggeration to say you’ll have virtually no hope of managing your finances effectively.
Without it you’d have many of the following problems:
- Unable to save for taxes, as you won’t know your exact profits and any deductibles
- Unable to pay your employees the right wages
- Unable to make sound business decisions about budgeting, such as advertising and recruitment
- Unable to tell the HMRC an accurate amount of earnings
This list may not be exhaustive, but it does highlight the issues of continuing to operate a business without any bookkeeping in place.
Always Have Accurate Information About Your Business Finances
When you hire a professional bookkeeper, you will always have accurate information about your business finances, which can help you to avoid making any spending, investing or saving mistakes. Modern bookkeepers utilise modern software, and other things like double-entry bookkeeping and data reconciliation to provide you with the most accurate and detailed overview of your business expenditure and income.
Filling Out Tax Returns Is Both Quicker and Easier
If you have worked long enough as a self-employed person, you will likely understand the stress and anxiety that tax season causes. Even before you take into consideration your non-existent or poorly managed bookkeeping, if you don’t use a professional, tax returns can be difficult to fill out properly. Therefore, you can avoid a lot of the stress of tax season by investing in a bookkeeping service. Having your accounts in good order, makes the whole process easier and quicker. It can also benefit you by saving you money on tax too, because your will have a more accurate record of deductions.
Access to Valuable Financial Reports
Accurate and detailed financial reports are essential for ensuring your business is a success. Without them you won’t be able to secure investments. Therefore, it is wise to invest in a good quality bookkeeping service, because the better your financial reports are, the better the chance will be of you securing investments. As your financial reports are the responsibility of your bookkeeper, if you do not have one, you can see how this will be a problem.
Futureproofing Your Business
It can be easy, if you are just starting your business, to get caught up in the here and now. However, in the business world you need to not only be prepared for the next month or so, but further into the future. Bookkeepers can help you to futureproof your business. They do this through carefully evaluating your business performance, the outgoings and incomings you have and help you to make the relevant changes needed to optimise and increase the profits you are making and to meet the financial targets you have in place.