Small business owners often tend to ignore adequate bookkeeping in their business. The importance of proper handling of financials or financial books cannot be overstressed. Any business that is interested in long term success must have well kept and well managed financial books. Two of the most popular ways that people go about bookkeeping are the use of online software or the hiring of a bookkeeper.
Bookkeeping should essentially be a day to day activity, which means a bookkeeper would work on your books on a day to day basis. A lot of people think a bookkeeper’s job is just to record the daily transactions, but a good bookkeeper does a lot more than that. A good bookkeeper keeps track of sales, payments, purchases and receipts. A good bookkeeper also works on design maintenance and revises internal business processes in a bid to find areas of improvement. A good bookkeeper as you would have guessed also records and collates financial day to day data and stores information methodically so it is clear enough for an accountant to look it over.
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The roles of a bookkeeper are related but simultaneously distinct from that of an accountant. A bookkeeper treats and prepares financial data on a day to day basis. This allows him/her to take note of cash flow problems and advice/implement remedial methods. On the other hand, an accountant deals more with the bigger picture. Accountants usually treat small business financials on a quarterly basis. During these reviews and treatments, they sort out issues like taxes and other financial advisory activities.
Why You Should Consider Getting a Bookkeeper
Solid Financial Advice
Your bookkeeper should not be taken for granted. An average bookkeeper has a considerable amount of financial knowledge. How much income should be put up to pay off debt? Is the business healthy enough to open another location? These are some of the questions bookkeepers are able to answer. They are able to provide in-depth financial advice because they deal closely with the financials so they are adequately informed.
Good Understanding Of Financials
A bookkeeper is able to tell you precisely at the end of every day, what your numbers are. You can understand how much profit or loss you are making, how much your business is owed and other much more vital information. As the bookkeeper’s sole focus is your books, this becomes much easier to pinpoint.
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Saves you time to focus on other vital business activities.
Running Your business can mean you have to be on toes a lot of the time. You are responsible for a lot of things including, problem-solving, innovation, pursuing leads and business development. Adding the recording of transactions can feel redundant and boring after a while. This is why having a bookkeeper can be a good idea.
With a bookkeeper, you are able to focus on the things that made you excited about the business and give you more room to focus on other things that would ultimately help grow your business.