Is reliable bookkeeping really that important to your small business?
It’s easy to dismiss bookkeeping as a necessary evil for your small business—a small task you can do at the last minute to get the job done. But is that really how you want to run your business? Reliable bookkeeping is, after all, one of the most important parts of your business. Without accurate accounting of your financials, your company could quickly come to a screeching halt.
How can you stay on track with your books? Set some goals and make some promises to yourself. Even if they sound a little crazy, they can get you where you need to be with the finances for your business.
Here are some bookkeeping ideas to get you started that can help you to make your own list of promises:
#1: Hire a Bookkeeper
We know, this one sounds totally insane! But bear with us here. Are you a bookkeeper? Or an accountant? Are you trained to handle all of the details of your accounting, including taxes? Probably not. And that’s okay! The important thing is that you are the expert at running your business and that you’re willing to let another professional handle the oh-so-important task of keeping your books.
The benefits of outsourcing your bookkeeping are numerous. First and foremost, it can save you time; you can focus on your business and let your accountant take care of your financial records. Second, it can ensure accuracy. Not many things are worse for your business than errors on your business taxes. Accountants understand all of the changes to the tax laws and can help you take advantage of all of the possible deductions available to you while ensuring accurate tax filing.
#2: Don’t Meddle in the Work of Your Bookkeeper or Accountant
Your job when it comes to your books and your bookkeeper or accountant is to provide accurate information so they can do their job. Your job is not to meddle in their process. If you hire a trustworthy accountant, you need to trust them. They will not only make sure your financial records are discrepancy-free and up to date, they will file your taxes when they’re due, and they can help you make sound financial decisions.
#3: Be Honest with Your Accountant
Sound crazy? Maybe to some. The truth is that the best way for your accountant to help you is for you to help them by being forthcoming about your business and your goals. Accountants have unique insight into the financial well-being of your company and they can do more than just record your money in-and-out and do your taxes. A good accountant can give you guidance on issues such as overhead and equipment investments, hiring and resource management, loans and financing, and business strategies.
The only way they can effectively offer you all of these services and advice is when you give them the information they need to work with so they can work for you to help you build and grow your business in a financially responsible way. Over-investing and overextending your financial resources is a quick way to a tight spot. A good accountant can help you avoid that.
#4: Communicate, Communicate, Communicate
Don’t hand over the keys to the register and hope for the best. Communicate with your bookkeeper or accountant! Stay in touch, understand what they’re doing, and communicate your needs and goals and budget. The best working relationships rely on effective communication, and your relationship with your bookkeeper is no exception.
Now that you know what promises to make for your business, it’s time to hire a professional to help you keep them. Learn more about how professional bookkeeping services can help your business, and click to download a free report on maximizing your use of QuickBooks for bookkeeping.