5 Reasons for Hiring a Bookkeeper
Read about why you might want to consider hiring a bookkeeper for your business.
First, what exactly is bookkeeping? It is the act of recording financial transactions. This also involves preparing documents for the transactions. This also includes receipts, purchases, and sales.
How well do you do with numbers? Did the previous paragraph sound boring? For some people, the idea of dealing with the books is fulfilling. For others, it is boring. Not only is it boring, but it is time-consuming.
If you feel you want to do your bookkeeping try the following programs. FreshBooks is accounting software for small businesses with few employees, individuals, and freelancers. QuickBooks is also like FreshBooks. They have products for businesses, freelancers, and individuals. QuickBooks also works better with larger businesses. If you wish to know more about the differences between FreshBooks and QuickBooks, go here.
Have you ever worked on your books and felt like you know less than when you started? We know this step of running a business is the most hated by many small business owners. A bookkeeper can handle all this for you. The following are the reasons you should hire a bookkeeper.
Expertise is important in bookkeeping
There are many times when you need an expert to help you. A mechanic to repair an axle. A carpenter to build a deck. And like in those situations, you could do them yourself. But if you do not have the time or the knowledge it can be a daunting task.
The same goes for the books for your business. Instead of breaking your car or building a misshapen deck, it’s your business on the line. If you miss a deadline or forget to pay a loan could be devastating. Not properly doing your books will net you a call from Revenue Canada. This means an audit, or even jail time will happen. You have to determine, will you keep on top of it or is it worth the risk. This is vital especially as your business grows and gets more complicated.
You don’t have the time
Do you feel that you are stretched thin? You only have so much time in a day to work on your business. Everyone needs time to relax as well. A bookkeeper frees up your time so you can work on other things. And as a small business owner, your time is precious. Especially if you are part of a small team or are by yourself. A bookkeeper also has the experience to complete the same task in a fraction of the time.
It is not the most exciting task
Bookkeeping is boring for almost everyone. Even though you need it for your business. It allows you to know how your business is progressing. It is also essential for tax purposes. But, dealing with the it feels like you are missing out on doing something more important. Finding clients, making sales, and improving your business.
It can also be a highly demotivating process. That demotivation can seep into other parts of the business as well. A bookkeeper takes that pressure off your shoulders. Every month you get your bookkeeping data. You can then use that data the make important decisions for your business.
We maximize tax benefits
A business and a person are tax different. Also, if you are not aware of what you are able to claim, you are hamstringing your business. Bookkeepers make sure you know the maximum benefits for your business. Even if you are organized, not being aware of what is claimable causes missed opportunities. A bookkeeper will make sure you know and work with you to maximize your tax benefits.
Check the financial status of your business
A bookkeeper offers a level of insurance for the financials of your business. They are also invaluable if you have to undergo an audit. Also, they make sure your financial information is in proper order for tax purposes. They will also work with your CPA to make sure everything is in order. If money is lost or someone is stealing from you, a bookkeeper can find those discrepancies.
A bookkeeper will also make sure you have the information needed if you need a loan. For many businesses, especially if you are starting you need good documentation. Documentation required by many financial institutions for issuing a loan.
Conclusion
A bookkeeper is useful for many things in your business. There are many situations where you can do things on your own. But, a bookkeeper ensures those things are done right. Especially for tax purposes or audit purposes. A bookkeeper is also more important as your business grows. As your business grows, it gets more complicated, and more errors are likely to happen.
At Headquarters, we can help you with your bookkeeping in Calgary and the surrounding area. Our staff has experience with effective bookkeeping practices. We free your time so your business can grow and run efficiently. Want to know more? Find out what services we provide. We are also happy to answer any question you may have, contact us!