Why You Need A Bookkeeper For The Growth Of Your Small Business

Small businesses often put off hiring a bookkeeper off until they’ve grown bigger, but that’s a mistake that can actually delay growth. The services of a bookkeeper extend beyond simply minimizing your tax bill, although that’s an undeniably valuable advantage. In addition to saving you time and money, a good bookkeeper helps you to manage your cash flow, plan ahead, make smart decisions and reduce any risks to the financial health of your business. Here’s why investing in a quality bookkeeper beats the DIY route every time. 

1. Save Money On Your Tax Return 

Let’s start with the most obvious advantage of hiring a bookkeeper: to save money having your taxes done. Filing your taxes is notoriously complex and even a small, innocent mistake can result in a hefty fine. Accountants train for years in order to be able to complete this process accurately, so doing your own return puts you at risk of making expensive mistakes. Having a bookkeeper reduces the amount of time your accountant spends to prepare your taxes...saving you money.

2. Free Up Valuable Time 

In addition to saving you money, a bookkeeper will also save you a lot of time that you can put to a far better use. As a small business owner, it’s vital that you keep accurate financial records and stay on top of your accounts. However, it’s equally true that your efforts are most valuable when concentrated on your area of expertise. Hiring a bookkeeper allows you to ensure that your accounts are being managed well whilst allowing you to focus on growing your business. 

3. Startup Advice 

As mentioned, many small business owners are reluctant to hire a bookkeeper in the beginning stages. However, an experienced bookkeeper will be able to provide valuable advice during the startup stage that can accelerate your growth on areas such as:

• Key financial risks

• Budgeting

• Financial forecasting

• Growth

• Overall financial health

Hiring a bookkeeper from the very beginning or early in the life of your business can help you build a solid financial foundation to ensure that your business is around for many years to come. They can advise you on which legal structure to choose and offer unbiased, constructive criticism of your business plan.

4. Manage Cash Flow 

Managing your cash flow well is essential to the growth of your business. Poor cash flow management is a serious threat to even the most profitable businesses, so it’s very important to get it right. Most bookkeepers are experienced in managing cash flow and can produce regular forecasts to ensure that you always have enough funds to continue operations as you scale up and market conditions change.

An Accountant Is An Investment

It pays to hire a high quality, proactive bookkeeper. Whilst there are many cheap services out there, you’ll see the greatest return on investment from hiring a bookkeeper who has the time, knowledge and experience to grow your business. A good bookkeeper will do everything they can to not only save you money on taxes but to provide valuable advice, manage your cash flow and secure the financial health of your business for years to come. 

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