Most small businesses fail within the first few years because they focus mostly on developing their product and trying to figure out how to get customers and don’t look at the financial side of the business. Entrepreneurs often miss the importance of understanding the basics of bookkeeping in their small business. In return, this leads to poor performance, poor sales and eventually failing in the business management aspect.
The most important key to having a profitable, growing business is knowing that the heart of any business is the business finances. Understanding business finances, in the long run, can make or break the life of the business.
Accurate bookkeeping is an essential component of small business success.
This is why you need the help of a bookkeeper. Bookkeepers can manage lots of different responsibilities within a small business, but the main focus is the organization, recording, and reporting of financial transactions as part of the operational life of a small business.
Here are 6 Ways a Bookkeeper Can Be Invaluable to Your Business:
1. They Help You Focus on What Matters
A bookkeeper will set up your bookkeeping system properly for your business and manage your books in a timely manner. A bookkeeper will ease any concerns towards your business financials, leaving you to focus more on developing your business growth and structure.
2. They Help You Save Money
A bookkeeper cost less than a full-time employee and is a more cost-effective solution to your bookkeeping tasks. With a bookkeeper, you only pay for the time used to work on your books, whether it be day-to-day or semi-weekly. Never pay for more than you require. You don’t have to worry about the stress of high turnovers based on employees performance or dedication. This saves time, money, effort, and energy.
3. They Can Help With Your Finances
A bookkeeper can track and monitor your business finances, showing you how much profit you’re making or how much you’re losing. They also provide you with the tools to be aware of where your money is going and when it’s coming in. A Bookkeeper can identify opportunities or financial trends you may not have noticed yourself, on ways to save money or make more money.
4. They Give Professional Guidance
A bookkeeper will be able to guide you through the financial statements (Income Statement, Balance Sheet, Statement of Cash Flow) and show you what those reports and the numbers on them mean for your business.
5. They Give You Efficiency of Decision-Making
With a bookkeeper, you have better access to financial information related to sales, customers, overhead, profit, and other issues. A bookkeeper, can pull specific reports based on management’s needs and make it easier to make quick and educated business decisions.
6. They Can Help You Plan Business Growth
A bookkeeper can help you deal with growth transitions. From hiring more employees, looking for a bigger office space, and market expansion.
Bookkeeping is the least favorite task of most small business owners mostly because it can be overwhelming and society at large is often undereducated in finance and money.
Hiring a bookkeeper can be very beneficial and a serious weight off your shoulders. A bookkeeper can be an investment to your business providing you with the necessary means to business management, maintain growth and control your profitability.
Photo by Anka Albrecht