Are you setting your business up for success? Too often business owners focus on growing revenue and finding new customers but neglect the basics of running a business. Bookkeeping is the foundational component of running a successful business.
Bookkeeping presents various benefits for your company, making it important to understand the ways your business can leverage monthly procedures and how to select the right bookkeeper.
Helps You Budget
First and foremost, regular bookkeeping helps you maintain a budget. A budget is important to run a profitable business. With no clear direction on where your money is going, you are more likely to overspend, which directly impacts your profitability. CFO bookkeeping gives you accurate reports to see where your money went in the last period and what actionable change is needed to improve your business’s financial position going forward.
Leads to Business Growth
Business growth is another benefit of regular bookkeeping. How can you expect to grow your business if you have no accurate information to base your decisions on? Bookkeeping often involves the monthly generation of the income statement, balance sheet, accounts payable aging schedule, and accounts receivable aging schedule. These four reports tell you how much money you made, who you owe, and what customers owe you, giving you tangible information to strategically scale.
Allows You to Comply with Regulatory Agencies
Compliance with regulatory agencies should be a top priority as a business owner. The IRS and state agencies require accurate information, placing the burden on you. Effective bookkeeping allows you to track sales tax in each state to promote timely remittances and ensures that all transactions are properly recorded. Maybe you forgot to enter a check or cash transaction. Whatever the case, when you engage in regular bookkeeping, you are boosting compliance with regulatory agencies.
Reduces Mistakes
Mistakes happen. Without regular bookkeeping, these mistakes can go undetected, leading to inaccurate tax returns, sales tax remittances, and financial statements. When the records in your accounting system are matched up to bank statements on a monthly basis, you can detect these errors and promote accuracy throughout your records.
Max Tax Time a Breeze
If you’re like most business owners, you dread tax time. Routine bookkeeping leads to up-to-date books throughout the year, eliminating the need for a large catch-up. Instead of spending hours trying to remember transactions from six months ago, you can take only a few minutes to review the books before sending them off to your tax accountant. Not only will this reduce your stress levels surrounding tax season, but it also gives you clarity throughout the year on where your business’s financial health stands.
Finding the Right Bookkeeper
Does it sound like you can use some of the benefits of bookkeeping? The good news is that you don’t have to try and handle the bookkeeping function on your own. Instead, you can work alongside a bookkeeper that ensures you realize the benefits of bookkeeping especially a CFO Bookkeeper that offers a varied list of other services.
The right bookkeeper will have the knowledge and experience to properly assist you. Inquire on what qualifications and certifications the candidate retains or discuss past projects. This will give you insight into the areas they are familiar with to see if they fit your business.
At BUSINESS, our team has the knowledge and experience to handle the bookkeeping in your business. Our team of experts will work alongside you to maximize the value you receive from our services. For more information, reach out today.