With the pandemic seeming to never end, small business owners are trying to reduce their money output to save money and keep their business running. Some may be thinking of letting their bookkeeper go. While this is completely understandable, let me tell you reasons why you, as a business owner, should hold onto your bookkeeper.
- Loans: In order to get a business loan, you would need to have your financial statements in order. But if you have been neglecting your books or they have gotten disorganized, it can be take longer to submit your documents and may end up more expensive in the long run if you have to pay someone to fix your books.
- PPP Loans: Speaking of loans, if you have gotten the PPP loan, it’s very important to make sure your books are current and in order to be eligible for forgiveness. If all transactions that are related to the loan are recorded properly, it’ll make your loan forgiveness process easier.
- Managing Cashflow: Your bookkeeper can be a great resource for how you should better manage your cash flow. They can help set up a budget for you or help you decide what charges you really need and which ones you could probably stop paying for.
- Taxes: Possibly the biggest benefit of having and keeping your bookkeeper is for making sure your taxes are done accurately. Properly recorded transactions can save a lot of time come tax season which may help keep your tax payments down and maybe save you some money.
If you want to continue having these benefits of a bookkeeper but truly feel like your business can’t continue to pay for one, try asking your bookkeeper if they might be willing to give you a “COVID-19” discount. Another solution, depending on the number of transactions per month, might be to go to quarterly services. Whatever your case may be, feel free to contact me for any bookkeeping questions.
