Keeping your financial records up to date is fundamental to the success of your small business. Bookkeeping is the first and probably the most crucial step in the accounting process. An accountant will compile all the financial data – from transactions to payroll – and turn it into easy-to-read reports ready for later analysis. There are a plethora of advantages of using an external accounting service compared to hiring an individual accountant. Let’s check out some of the incredible perks of using a bookkeeping service for your small business!
#1. Helps You Understand Your Financial Health
Updating your directories allows you to have access to information that is crucial to the smooth running of your business: all unpaid invoices, salary estimates, and income information will be at your fingertips.
#2. Helps Your Budget
Bookkeeping is essential as it helps you budget. When income and expenses are correctly organized, it makes it easier to review financial resources and costs. A budget creates a financial roadmap for your business. With a budget, you can plan for future expenses and the anticipated funds that would cover those expenses.
#3. Improves Decision-making
If you have daily bookkeeping records, you will find it much easier to make crucial financial decisions. Knowing how much capital you have at your expense helps you to decide on matters like purchasing inventory or hiring more staff. If your records show that you are running low on capital, you can choose to take out a loan for your business.
#4. Unbiased Opinion
Having an external bookkeeper can do wonders for your business. An internal bookkeeper is often emotionally involved in your company. External bookkeeping services will be all business and may offer some crucial insight into your business’ financial situation. It may be positive or negative insight, but either way, it’s valuable information you may have missed otherwise
#5. Makes Problem-Solving Easier
If you do your bookkeeping daily, you will be able to catch any problems early and solve them before they increase. If you update your books daily, you can identify any fraudulent activity and report it before it does irreparable damage to your business.
#6. 100% Peace of Mind
Disorganized books can weigh heavy on your mind as a business owner. With all of the other factors of running a business, your bookkeeping should not be keeping you up at night. When your books are complete, you can rest easy knowing that your company’s financial information is review ready. Banks or the IRS no longer have to give you anxiety. Instead, you’ll find your mind at ease, and more focused on other elements of your business.
#7. Focus on What is Important to You
Using a bookkeeping service will allow you to focus on what is important to you, both within and outside of your business. Maybe you want to focus on sales and growth, but you need specific financial reports and analysis to do so. Perhaps you just don’t want to have to worry about your business bookkeeping so you can focus on things outside of the office, such as your family and golf game. Using a bookkeeping service will alleviate any concerns about your business’s financials so you can refocus on what is important to you.
#8. Provides a Snapshot of Your Business
Bookkeeping provides financial information about your company in the form of financial statements. Financial statements like the balance sheet, income statement, and cash flow statement all provide financial information for a set of time. Together these statements take a snapshot of your business, allowing you the ability to see how well your company performed.
Are you becoming frustrated with managing your finances and losing track of your bookkeeping obligations? John Mollica & Associates has got you covered! Boasting over 24 years of experience in the taxation and accounting field, they’ll provide efficient, practical business and accounting advice to help you acquire more assets and protect them and make sure your small business stays competitive and profitable.