As a business owner, you have a lot on your plate. You’re managing employees, overseeing operations, and making critical decisions that impact the success of your business. However, one area that’s often overlooked is bookkeeping. Having a bookkeeper can make a significant difference in the success of your business, and here are some key differences between a business with a bookkeeper versus one without:
A Business with a Bookkeeper:
- The business owners can focus on money-making tasks: With a bookkeeper handling the financials, the business owner can focus on tasks that generate revenue for the business, such as sales, marketing, and product development.
- Monthly financial statements: The business owner always knows how the business is doing. Bookkeepers keep track of all financial transactions and provide monthly financial statements that show the business’s income, expenses, and overall financial health. This helps the business owner make informed decisions that impact the growth of the business.
- The business can be more organized: A bookkeeper can create a system for organizing financial transactions, making it easier to track expenses and income. This organization can lead to more efficient financial processes and ultimately save time and money for the business.
- Tax savings are more: Bookkeepers can help identify tax savings opportunities and provide accurate financial information to the business owner’s tax professional, potentially saving the business money in taxes.
- Required to have clean books by the IRS: The IRS requires businesses to maintain accurate and complete financial records. Having a bookkeeper ensures that the business meets this requirement.
- Getting investors for your business is easier with a bookkeeper. Investors want to see clean and organized financial records before investing in a business. A bookkeeper can provide investors with the necessary financial information and increase the likelihood of receiving funding.
Now let’s take a look at a business without:
- The business is more likely to be disorganized: Without a bookkeeper, financial transactions can easily become disorganized, leading to errors and inefficiencies in financial processes.
- The business owner doesn’t know the correct numbers for their books: The business owner may not clearly understand the business’s financial health without accurate financial records. This can lead to incorrect decisions that negatively impact the business.
- Filing taxes is a pain, and it’s impossible to do any accurate tax planning: It can be challenging to file taxes correctly and plan for tax savings without accurate financial records.
- Investors are less likely to take a business seriously without clean books: Investors want to see organized and accurate financial records before investing in a business. The business may not appear as a serious investment opportunity without a bookkeeper.
In conclusion, having a bookkeeper can significantly impact the success of a business. It provides accurate financial information, ensures compliance with IRS regulations, and can potentially save the business money. On the other hand, not having a bookkeeper can lead to disorganization, incorrect financial decisions, and difficulty in securing investment funding. As a business owner, it’s important to consider the benefits of having a bookkeeper and weigh the potential costs of not having one. Reach out to discuss whether it’s time to hire a bookkeeper.
