As a small business owner, you need a team of professionals who can help you get your business up and running and then keep it thriving. And while most entrepreneurs know the value of working with an accountant, a lawyer, and agents, other professionals might get overlooked. A good bookkeeper is one of those professionals.
But a bookkeeper can do more than just enter your numbers into accounting software and print out reports. A bookkeeper can help you protect your business and take it to the next level. How? Here are a few ways.
1. A Watchful Eye
A bookkeeper is your eyes and ears over your money and assets. This is especially true when hiring an outside service as an impartial third party to keep an eye on your financial transactions. A third party can help spot questionable purchases, invoicing irregularities, patterns in money transactions, and errors made by employees or outside parties.
This watchful eye helps you create checks and balances as well as separating functions. Small businesses are at risk when money-related tasks are handled by only a few people - or even by just one. But an objective bookkeeper is a simple way to ensure that no one person has too much control over your assets.
2. Accounting Experience
Bookkeepers are professionals at handling your books, and they know the best ways to manage everything.
Through years of experience and knowledge of the accounting process, a bookkeeper will make sure that all your transactions are properly accounted for, coded, and reported. They know the difference between expenses and depreciable assets, which expenses can be deducted on tax forms, when taxes need paid, and how to manage company credit cards for the least hassle.
Without an experienced person watching transactions, you may end up paying more at tax time, paying unnecessary fines and interest, and paying a more expensive accountant to fix things done wrong during the year.
A good bookkeeper should be on the lookout for new ways to streamline, automate, and improve your bookkeeping system.
As technology changes, you may not be aware of potentially valuable new choices. But your bookkeeper should be. If you're still entering deposits and payments by hand, for instance, a good bookkeeper might suggest subscribing to bank feed services that automate this process to reduce errors and save money.
Technological improvements like the integration of apps, mobile device versions of software, e-mailed and online invoices, and cloud storage can all help a knowledgeable bookkeeper keep your business efficient and smart.
Modern businesses need to know as much as possible about their business at any given moment so they can make good decisions. But if you're relying on an accountant to do the books once a month, or trying to do them yourself as you find time, your books are probably already out-of-date.
Having a dedicated bookkeeper means the financial tasks will get done faster and more precisely. They can balance transactions daily, record deposits as soon as they occur, and ensure that financial reports are always available.
Accurate and timely information will help everyone on your team do their part more efficiently. Users get immediate feedback on the processes and transactions they do, and you know exactly what your cash flow is today.
You'll know what needs paid tomorrow, next week, and next month. Inventory is kept more accurate. Errors are fixed when they occur rather than mucking up your books for weeks or months. And your business can keep up with the competition.
A bookkeeper can - and should - be a valuable part of your business team. Whether you're looking for best practices, innovation, or help learning how to boost your bottom line, working with a bookkeeper is an easy way to help turn your business into a money-making machine.
Learn more about what a bookkeeper can do for your particular business by meeting with Williams & Associates Tax Services today.