Why does everyone keep talking about bookkeeping services?
Bookkeeping services might seem like a small detail when it comes to the life of your business, but it can actually be the lifeblood that ensures its survival. Sound a little dramatic? Maybe, but it’s also true. Read on for some concrete reasons why bookkeeping is so important to your small business.
The Truth about Bookkeeping Services
An old-fashioned vision of a bookkeeper is a bean counter hunched over a ledger, painstakingly tracking the spending for a business. A bookkeeper doesn’t just write down what money goes in and what money goes out. They’re responsible for so much more. Here’s a quick list of some of the primary tasks a bookkeeper does on a regular basis:
- Maintain financial records
- Balance various bank accounts
- Record and report financial transactions
- Remit payment to vendors and suppliers
- Invoice customers and clients
- Receive, record, and deposit payments from clients and customers
- Manage the ledger, usually in accounting software such as Quickbooks
- Oversee budget and allocate funds to different departments to cover expenses
- Manage company payroll
- Track and record company inventory and assets
- Provide reporting on finances including profit and loss statements
Imagine if no one was doing all that a bookkeeper does? It’s easy to see that things could fall apart rapidly in the finance department without someone to manage it.
Bookkeeping Services and Your Company Goals
As a business owner, your priority is the survival of your business. One of your goals certainly is also its growth. There are many factors in the running of your brand. The creation of your products and the providing of your services that play into the success or failure of your business. One of these is your ability to properly and accurately keep track of everything financial.
By keeping careful records of your finances, your bookkeeper is also able to help you with some or all of the following:
- Plan ahead: planning ahead is one of the most important things you can do to ensure the success of your business. As your company grows, you need forward vision. Financial planning is no exception. A bookkeeper has unique insight into your financial growth and can help advise you as you invest in and grow your business.
- Meet deadlines: one of the fastest ways to bring down your business is to tarnish your reputation and your brand with your vendors by failing to pay your bills on time. A bookkeeper will keep you on track with everything you owe, to everyone you owe it to when it’s due.
- Manage cash flow: this is like balancing your personal checkbook. If you don’t know how much you’ve got, you don’t know how much you can spend, and you don’t know how much you’re making. Cash flow management is vital to the forward motion of your business.
- Future forecasting: in order to grow your business, you must have a clear picture of the future so you can accurately estimate where you need to invest time and money. Is it with more advanced technology or equipment? Will you need additional employees or a larger staff? Understanding future forecasting with the help of your knowledgeable bookkeeper will help you set your goals and projections to plan for the future.
Why Even the Smallest Company Can Benefit from a Proper Bookkeeper
When you start a business, even if it’s just you in your home office or garage working to build your dream, you will have finances that need to be taken care of. You’ll definitely have accounts payable, and hopefully, you’ll have accounts receivable. There’s some type of investment in technology, inventory, parts, or supplies, and don’t forget about taxes. A bookkeeper can help get you started on the right foot so you can grow more quickly and focus on running your business, not managing your cash flow.
If you start out your bookkeeping by just winging it, you’re setting the standard for lackluster financial accounting and allowing your company to suffer. Instead, start your business, and grow your business, with a bookkeeper that can help keep your finances in good shape while you keep your company on the fast track to success.
Contact us online or call 678-990-0924 for a free consultation to learn how bookkeeping services can help your business.