Being a bookkeeper is not a glamorous job. There are no fancy products to really showcase the value the service brings to all business industries. Part of my job as a bookkeeper is to educate my clients on the key reasons why professional bookkeeping is so crucial to the overall success of their business.
Below are 6 of these reasons.
1. Accurate and organized financial data is NECESSARY.
As a business owner, it is your job to keep financial accurate and organized financial records. Those records can tell you how well the business is doing, where the money is coming from, and where it is going. Aside from the obvious, it can help you should there be an audit. Being able to clearly explain any transaction at any given time can potentially save you tens of thousands of dollars.
2. Proper categorization of the Income and Expenses.
For tax purposes this is particularly important because getting it wrong can mean an audit, over or understated income and expenses, missed deductions, and overpayment or underpayment of tax liabilities.
3. Timely reporting of sales and payroll tax.
As a business owner, there are several tax reporting agencies that require timely filing and payment. Payroll and Sales tax are two of the most important and can come with hefty fines should you neglect them. Check with your local city, state, and federal government about what taxes you will need to pay for your particular industry.
4. You should maintain separate bank accounts.
In a previous blog post, I shared why, as the business owner, you should keep separate bank accounts. One reason not mentioned in the blog is that emergencies happen, even in business. Having funds set aside for such emergencies can keep the business afloat and not add any stress on the finances.
5. Backing up your books can be a lifesaver.
As a business owner who has had her laptop busted and hard drive destroyed, I can attest to how important backing up your data is. Your financial data is even more vital. Paper deteriorates over time. The ink becomes hard to read and it just does not hold up well. Not to mention it isn't secure enough most times. Invest in an online secure storage service. It will give you some much needed peace of mind.
6. Simply to make sure the data was entered correctly.
Numerical errors happen. Finding them is what is difficult. When you are frustrated with the amount of bookkeeping work to be done, these errors can and will occur frequently. Having a professional handle the bookkeeping can lower the chances of data entry errors. These errors, can cause massive issues with your financials like overstated income, understated expenses, meaning you are paying more taxes and getting less deductions and no one wants that.
AMH can handle those books for you. This is my passion. Let me help you AND your business!