Full-Service Bookkeeping
You went into business because you’re great at what you do, not so you could categorize your expenses to the correct account and ensure your payroll codes are up to date! However, according to smallbusiness.com, 83% of small business owners believe having an organized office is a vital part of their business. So, if you won’t be handing your books, how do you know the person you hire will ensure you are hitting your target numbers? Reports from Small Business Trends reports 60% of small businesses make no profit. And according to the Construction Financial Management Association, the average net pre-tax profit of those that do make money, is less than 3%!
Commonly, a “bookkeeper” is hired with the reasonabilities of entering receipts, sending invoices, and paying bills & payroll but they have no knowledge of how to read financial reports, look out for red flags, or use past data to anticipate upcoming problems & forecast slow times. As
1. Financial Decision Making: Accurate bookkeeping provides you with a clear picture of your financial health. It allows you to track income, expenses, and cash flow, enabling informed decision making. With accurate financial records, you can identify trends, analyze profitability, and make adjustments to optimize your finances. This information empowers you to make strategic decisions that can lead to growth and stability.
2. Compliance and Tax Obligations: Maintaining accurate financial records is crucial for complying with legal and regulatory requirements. Bookkeeping ensures that you have a record of all transactions, making it easier to prepare financial statements, file tax returns, and meet deadlines. Accurate bookkeeping helps you avoid penalties, audits, and legal complications that may arise from inaccurate or incomplete financial reporting.
3. Business Performance Evaluation: By accurately tracking and analyzing your financial data, you can evaluate the performance of your business. Bookkeeping allows you to generate key financial reports such as income statements, balance sheets, and cash flow statements. These reports provide insights into your business’s profitability, liquidity, and overall financial health. Regularly monitoring and assessing these reports can help you identify areas of improvement, make necessary adjustments, and set financial goals.
4. Financial Planning and Budgeting: Accurate bookkeeping is essential for effective financial planning and budgeting. It enables you to forecast future revenue and expenses based on historical data. With a clear understanding of your financial position, you can create realistic budgets, set financial targets, and allocate resources efficiently. Bookkeeping also helps you identify potential cash flow issues, allowing you to take proactive measures to avoid financial pitfalls.
5. Facilitating Investor and Creditor Relations: If you’re seeking investments or loans for your business, accurate bookkeeping plays a vital role in establishing trust and credibility. Investors and creditors rely on accurate financial records to assess the viability and stability of your business. Transparent and precise bookkeeping demonstrates your commitment to financial responsibility, making it more likely to attract potential investors and secure favorable financing terms.
6. Audit Preparedness: Accurate bookkeeping simplifies the process of internal and external audits. By maintaining detailed and organized financial records, you can quickly provide the necessary documentation and evidence during an audit. This not only saves time and resources but also demonstrates your commitment to transparency and accountability.
Accurate bookkeeping is more than just a legal obligation—it’s a fundamental practice for financial success. From aiding in decision making to ensuring compliance and fostering credibility, accurate bookkeeping provides numerous benefits. Whether you are managing personal finances or running a business, committing to accurate bookkeeping practices will provide you with valuable insights, help you achieve financial stability, and lay the foundation for long-term success.