If you’re like most small businesses, cash flow is tight and if you’re just starting out, it’s easy to think you need to do all the administrative work yourself. This line of reasoning is especially true if you’re from the handmade community. The urge to DIY can be so strong, it wipes any notion of extra help from your mind. Because hiring a bookkeeper is an expense you think you don’t have.
So you sign yourself up for what looks like the easiest software and make half-hearted attempts to keep track of expenses. Perhaps you keep your receipts in a shoebox. Or forget to keep them at all. Maybe you check in on your software once or twice a year. Everything looks like its working? Maybe you don’t even look.
Then comes tax time when you have to really look at your accounts and records. Surprise! It’s a mess. Maybe the software stopped working. Maybe there’s double entries you have to fix. Perhaps you find lots of expenses miscategorized. You’re not sure how much money you made or what expenses you can claim.
That’s time and money out the window you weren’t expecting to spend to clean up the mess.
Here’s how hiring a bookkeeper will save you from this headache and save you money to boot!
1. Help Set up a System
A bookkeeper will help find the right accounting software for you. Be it desktop or app, a bookkeeper will train you on how to use it and when and how to input your account information, expenses and invoices. If you’re a small business you don’t need the biggest or most powerful system; you need one suited to your individual needs and a bookkeeper will do just that.
A bookkeeper will also train you on how and where to save your receipts. One way to organize your receipts is to use Receipt Bank. This app allows you to quickly take a picture of your receipt and it helps track your expenses.
By having an accounting system in place and the knowledge on how to use it, you’ll be better prepared to keep track of your incoming and outgoing money.
2. Prepared at Tax Time
Imagine tax time as a stress free time. If you’ve set up that system with your bookkeeper, it can be. A bookkeeper can help keep you organized and on track with your accounting system throughout the year, so this dream can be a reality.
Instead of scrambling for lost receipts and unpaid invoices, a bookkeeper will have helped you reconcile your accounts, (where you match your bank statements to your transactions), and remind you of your unpaid invoices and help ensure that there are no unaccounted expenses.
This is beneficial for quarterly or annual sales tax filing, as well as income taxes. Your nicely organized files can simply be downloaded and sent to your tax preparer, stress free.
3. Saves you Time
Time is money. If you keep on top of your accounting system and do a little bit throughout the year, it adds up to big time savings. For you and for your bookkeeper. If you don’t, disaster can happen.
After vacation one year, I came back to a client’s year end, where you reconcile accounts for the year. I quickly learned that their files weren’t up to date. I spent a month to get the work done. Not only did it cost the client more because of the extra time I had to put in, but it was super stressful for the both of us.
Hiring a bookkeeper to help you set up a system and working with them throughout the year to keep your files organized helps save you money in the long run.
It may seem like a big expense, but it will be an even bigger expense to hire one during the busy seasons to tidy up a big accounting mess.
Free Bookkeeping Assessment
Worried you may be losing money because of your accounting set up? Not sure if your system is running properly? Let me review it. I’d like to offer you a free assessment of your current accounting systems.
Contact me today for your FREE assessment
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