According to the U.S. Bank, 82% of businesses fail because of poor cash management. Additionally, only 1/3 of new businesses make it to the 10-year mark. Wow!
Those are staggering statistics.
Having a Bookkeeper Can Help You Combat Those Startling Statistics
The best solution for cash management problems is hiring a professional! Although bookkeeping may initially seem simple, there are actually a lot of nuances involved. Without an experienced bookkeeper or accountant, you risk blindly running your business- that's just not good. Let’s look at some reasons why your business needs a professional bookkeeper.
1. Improved Cash Flow
Accurate bookkeeping improves your company’s cash flow. By reporting expenses, revenues, liabilities, and receivables, you can track customer and vendor invoices and ensure bills are paid on time. Keeping up with customer payments is essential to your cash flow, and paying bills on time helps you avoid late fees and credit dings.
2. Proper Bookkeeping Is Good For Your Budget
Bookkeeping helps you maintain your business’s financial roadmap which is essential. By organizing your books properly, bookkeeping gives you a clear picture of your company's financial health and helps you make better decisions. Bookkeepers help you maintain a robust bottom line and can assist you in planning for your future.
3. It's Good For Work-Life Balance
While you could focus on core business needs and handle everything else in your company, you'll have no time left at the end of the day or week for yourself or your loved ones and are more likely to experience burnout. Everyone needs balance and hiring a bookkeeper to handle your books can buy you back the time needed to achieve that balance.
4. Keep Your Focus On Core Business Needs
A startup needs the attention of its owner and executive staff. For a startup especially, this includes the attention needed to grow the idea into a viable product or service. That means that, as that founder, your time should be devoted to strategy, marketing, funding, and other key areas that require your focus over the daily operational tasks of a business. Hand over or outsource the things you can- delegation is key!
5. It Makes Tax Prep Easier
Filing taxes is confusing enough as it is; without accurate financial records, tax season gets even more stressful. Most businesses must file taxes annually as well as quarterly, and the last thing you want to do is file incorrectly due to incorrect financial records. A professional bookkeeper will have all of your documents in order and be able to work with your accountant on your tax preparation.
6. Profit And Growth Tracking & Reports
Having a professional bookkeeper on your side means that tracking your company’s profit and growth will be a breeze. Your bookkeeper will give you a financial snapshot of your bottom line by providing you with reports like the income statement, balance sheet, a statement of cash flows. Using these essential statements will enable you to see if your business is profitable or not and give you the information necessary to make good decisions.
7. Ensure Bills Are Paid On Time
Between opening a new business, creating all the things, running from here to there, sending out products, etc. something often gets neglected, and typically that ends up being the bills that need to get paid!
You don't want your or your business' credit impacted by late or forgotten payments. Putting a bookkeeper in charge of your Accounts Payable gives you the confidence that everything has been handled on time.
How A Bookkeeper Adds Value To Your Business
An outsourced bookkeeper can start performing their duties and making a difference for your business right away. They can be a regular asset for the company, providing a flexible and cost-effective solution for businesses.
Additionally, you don’t have to be limited solely to bookkeepers in your organization’s physical region. By going with a remote bookkeeper, you can find someone with expertise in your industry even if they don’t reside in the same state as your business. Organizations are able to find fast solutions when they’re matched by industry and type of experience, rather than geography.
When Does My Business Need A Bookkeeper?
The key to knowing when your business requires a bookkeeper is when your company reaches any one of the following points:
You’re too busy categorizing transactions to focus on other parts of your business like selling, creating, and growing. Or you're too busy to really enjoy your business and life.
You’re behind on collecting your company's accounts receivables or sending out client invoices (both of which can be very time-consuming).
You’re not reliably keeping company bills and receipts in an organized manner.
You have too many accounts to gain valuable business insights OR You don't have any idea what your reports even mean for your business.
You don’t have any accuracy or clarity on what you’re spending and making as a business.
You play crazy catch-up every year-end to get your books in order for tax season.
You spend more than a few hours per month on bookkeeping tasks, the time you could be better spending in other ways!
If you’re encountering any of these issues with your business right now, it might be time to hire an outsourced bookkeeper.
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