Have you recently started a business, or are you thinking about starting one soon?
If your business has any money coming in or out of its account, you likely need a bookkeeper. Even in the start-up phases, it is unwise to spend your valuable time on monotonous tasks such as data entry. But perhaps more unwise is neglecting the proper recording of finances altogether. It can be easy to get overwhelmed by the constant demands of your business and, understandably, you’re probably more focused on bringing in customers than balancing the books. But it’s important to note that this failure to acknowledge and maintain your financial records can make it difficult for your company to succeed. In fact, it’s one of the leading causes of business failures.
Improperly recording your income and expenses can lead to mismanagement of funds and inaccurate financial reports. As we all know, the CRA does not like when companies do not accurately account for their profit and loss, and this mistake can be fatal. While you’re focusing on growing your business and delivering the superior product or service that you excel in, it’s highly recommended to let a professional bookkeeper keep your books in tip-top shape.
Why do you need a bookkeeper?
Understand your financial state and plan accordingly
The excitement of starting a business can cause us to overlook important parts of our financial plans. It’s not difficult to account for more money than is actually there, which can easily lead to overspending. At the same time, you may have missed an extra source of income that would allow you to invest into important aspects of your business. Either way, having an expert eye review your finances can help you to plan strategically.
Prepare you for tax season
Even if you’ve gone the entire year thinking that you can handle your finances, when tax season rolls around you may start to regret not hiring professional help. Your financial records need to be immaculately kept to maximize your tax return while also ensuring the CRA does not find any errors and decide to audit you. Having an experienced small business bookkeeper looking after your books will give you peace of mind knowing that your company will meet all the requirements of the CRA come tax season.
Save time and money
Yes – hiring a bookkeeper may seem like an expense, but in the long run it will actually save you a noticeable amount of money every year. This is because he/she will correctly record and document all of your business’s income and expenses, while also identifying costs that can be written off. We’re not here to say that you’re incapable of keeping financial records – but without training and education it’s very possible that you can make a mistake that can turn your efforts into a waste of time.
Expert advice whenever you need it
Perhaps one of the greatest aspects of having a professional bookkeeping keeping your books in order is that they can offer valuable tips and advice on your business’s finances. Whether you’re unsure if you can write off a vehicle or meal expense, or you’re looking for areas that you can cut back to save money, your bookkeeper is a great source of information. Especially if you have a bookkeeper that specializes in and respects small businesses, it’s great to have one on your side.
Final words
If you’ve just started a business or are thinking about starting one soon, it’s wise to start looking for a bookkeeper who can work with you to maximize your profits and all you the time you need to focus on growing and working on your business.
