Did you know only 33 percent of small businesses employ a bookkeeper?
If you’re not in this group, you probably have a “good” reason. Maybe you don’t have the resources to employ an in-house bookkeeper or you feel you’re competent enough to handle your business’s bookkeeping. Or you could be relying on accounting software that seems to do the job just right.
Here’s the thing, though. Nothing can replace employing a bookkeeper. Having a professional who’s dedicated to managing the financial affairs of your small business comes with many great benefits.
Curious to know these benefits? Read on!
Improve the Financial Health of Your Small Business
This is by far the most important reason to hire a small business bookkeeper.
Of the small businesses that fail, 82 percent do so because they run into financial challenges. These include running out of capital, poor management of financial resources, or poor cash flows.
A striking commonality among many of these businesses is they don’t employ bookkeepers. While we’re not saying that having a bookkeeper guarantees that your business will not fail, having one will at least ensure the business doesn’t fail because of poor financial health.
Bookkeepers do many tasks that help improve the financial well-being of a small business. By keeping an accurate record of your business’ income and expenditure, for instance, you’ll have a clearer picture of your small business finances. With this information, you’ll be in a better position to make informed business decisions.
Focus on Other Tasks
If your business doesn’t employ a bookkeeper, you’re certainly wearing the bookkeeping hat.
This isn’t the smart thing to do. First, you may not have any bookkeeping expertise. This makes you prone to making bookkeeping errors that can cost you down the road.
Second, even if you’re a skilled bookkeeper, keeping your business’ books of account isn’t the most effective way to spend your time. As a business owner, you have other key duties that deserve your attention. Hiring a bookkeeper relieves you of one task, freeing up some of your time, which you can use to focus on other important tasks.
Professional Financial Reporting
There are a number of financial reports any business needs to keep. They include:
- Balance sheet
- Income statement
- Cash flow statement
- Accounts receivable report
- Net profit margin overtime report.
Which of these statements do you have? Are they up-to-date?
If you doing DIY bookkeeping, there’s a good chance you aren’t taking financial reporting seriously. As long as there’s a record of money coming in and going out, you think you’re doing just okay.
Yet, these reports are crucial, especially when you’re trying to attract investors or get a business loan.
A bookkeeper is trained to prepare these documents. Hiring one means your business will always stay on top of its financial reporting needs. And they don’t have to be in-house. Even a freelance bookkeeper will do the job properly. Check out https://freeup.net/hire/bookkeeping/ to learn more.
Hire a Bookkeeper Urgently
Regardless of the reason you haven’t employed a bookkeeper so far, it’s not greater than any of the benefits your business will enjoy when you have one. Don’t wait a minute longer. Hire a bookkeeper today.
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