It doesn't matter whether you're a one-person operation or a fast-growing business with payroll taxes, every business needs a bookkeeper.
Along with managing day-to-day finances, a good bookkeeper keeps your business on track and gives you insight into your cash flow. While you can learn the basics of bookkeeping, your time would be better spent growing your business. Here are some benefits of hiring a bookkeeper for your business:
1. A professional bookkeeper will save you time
Managing your finances and bookkeeping requires dozens of hours of your time every month. Because it's so tedious and time-consuming, you always put it last on your list. Then you have to scramble to catch up when the tax filing deadline approaches.
If you spend time on non-core tasks, like bookkeeping, you may be holding your business back from its potential growth. By letting a bookkeeper take care of your accounts, you gain more time to focus on what matters most to your business.
2. A bookkeeper prevents errors
As innocent as they may be, mistakes are costly. Not only could you record the wrong information, but misreporting any income or expenses could result in a fine from the CRA, or make you pay more than you have to. It is a bookkeeper's job to record all your numbers, receipts, bills, and invoices correctly into your accounting software.
3. A bookkeeper keeps your books up to date
Running a successful business relies heavily on cash flow. If you don't know your numbers and profit, you are mostly guessing whether you can afford to grow your business. While an accountant gives you strategic advice and handles your tax returns, a bookkeeper manages your cash flow more directly.
4. A bookkeeper keeps your cash flowing
Because your bookkeeper is responsible for recording your invoices, receipts, and other transactions on a daily basis, they have a good idea of your income, expenses, and spending habits.
Their attention to your accounts will enable you to understand your business performance and identify cash flow issues as they arise.
5. A bookkeeper can even increase your profits
In general, companies' profits increase by 16% when they hire bookkeepers. The main reason is that bookkeepers have the experience to efficiently manage your bookwork, which leaves you more time to focus on other areas of your business (like increasing profits).
6. Bookkeepers are cost-efficient and scalable
Depending on the size, scale, and nature of your business, outsourcing your bookkeeping can be more cost-effective than doing it in-house. External bookkeepers aren't distracted by your business’s ups and downs as their sole job is maintaining your books and keeping them organized and compliant.
Moreover, your bookkeeper can scale with you as your business grows, taking on more or less as needed.
Contact Dedicated Bookkeeping Solutions Inc
It's possible that outsourcing your bookkeeping is the smartest step a small business owner can take for their overall success. By saving time and money, focusing on your expertise, and increasing cash flow, a bookkeeper is a wise investment for any business.
Dedicated Bookkeeping Solutions Inc is always excited to help out small business owners. We would love to get behind your success. If you have any questions, please don’t hesitate to contact us today!