Is It Time to Hire a Bookkeeper for Your Small Business?
Updated: May 24, 2021
Money makes the world go round—it plays a big role in people’s jobs, educations, and futures while also significantly affecting others’ attitudes and behaviours. Everybody has their view of money; it can be their cause of suffering, motivation, or dream. Money is simply important! They need it, you need it, and your business needs it.
It is the lifeblood of your business, and your business needs to generate enough of it to expand your company in the future successfully. You also need enough cash to operate your company smoothly and to pay your employees. Given that basic notion, the lack of finances will surely spell doom for your company.
Managing Your Money
Perhaps your business has had success, and now you have earned quite a big sum of cash. What now? Handling money is a serious business on its own—if you’re not careful, that big sum could disappear quicker than when you earned it. As your small business grows, your money matters become more serious, more complicated, and more challenging to keep track of.
Signs That You Should Hire a Bookkeeper
As a small business owner, you may be used to having few people lending a hand and doing almost everything on your own, but you’ll have to ask for help eventually. Managing your money while running your business is a formula for disaster, bankruptcy, and tax problems. If any of these signs apply to you, it’s a sign that it’s time to invest in Gold Coast bookkeeping services.
You’re spending more time updating your books instead of managing the business;
You can’t keep track of all business transactions;
You miss out on tax deductions;
You have an unpredictable cash flow; and
You’re not confident about the accuracy of your booking records.
What Is a Bookkeeper?
A bookkeeper is an accounting professional responsible for processing, recording, and maintaining a business’s financial transactions. This includes sales, purchases, sales revenue, invoices, collection of accounts receivable, and more. The bookkeeper then records the financial data into ledgers which are used to make the balance sheet and income statements.
The Difference Between Bookkeepers and Accountants
Bookkeepers and accountants are not the same things, and they are not interchangeable.
Bookkeepers are involved with only the record-keeping of financial transactions, while business accountants analyse the bookkeepers’ data and provide insights and financial advice. Bookkeepers only record financial data, but accountants study the provided information to generate reports, make plans, and advise the business owner regarding their financial decisions.
An accountant can be a bookkeeper, but a bookkeeper must become a Certified Public Accountant (CPA) to be an accountant.
Why You Should Hire a Bookkeeper
To any business, whether big or small, managing finances is essential. Bookkeeping helps keep your money in check and can also help you with figuring out your budget. Here are a few ways bookkeepers can assist you with your business:
Helps You Budget
Bookkeeping will make it easier for you to create your budget. There will be no chance of you going above your budget if you have an accurate account of how much you regularly spend and earn.
No More Tax Problems
As your business grows, taxes become much more complicated and stressful. With your bookkeeper’s help, you will always be ready for tax season, and you can file your taxes on time without any problems.
Hiring a bookkeeper gives you one less thing to worry about. Managing your business becomes much easier when it’s the only thing you have to think of! You never have to agonise over late payments, tax penalties, and cash flow issues ever again.
Healthy Work-Life Balance
Your business may be a large part of your life—but it is not your whole life. Maintaining a healthy work-life balance keeps you mentally sharp and physically fit, so you’re ready to handle any challenges in the workplace. Hiring a bookkeeper prevents you from having to use all your time just working, and gives you enough space to breathe and relax.
Bookkeepers are indeed life-savers when it comes to managing your business’s finances! If you’re convinced that it’s time to get a bookkeeper for your small business, make sure that their bookkeeping services are trustworthy, efficient, and smart.
Does your business need help with managing your finances? New Wave can help you with that! We provide end-to-end accounting and bookkeeping services that help scale & grow businesses. Working with over 600 companies in different industries has allowed our Gold Coast accountants to understand each industry and create tailored solutions for our clients. Contact us today!