There are few business owners that can master all the individual tasks it takes to run a business. Accounting and bookkeeping are two tasks that many business owners find difficult to grasp. They are time consuming and take away from the time and efforts needed to grow and run a business.
They are, however, essential functions necessary to run a successful business. Not only are accurate records needed to comply with tax laws, but a company’s bank will definitely need properly maintained financial records when making or renewing business loans. Importantly, good financial records inform business decisions and are the diagnostics that business owners can use to identify problem areas and growth opportunities. Numbers don’t lie and they are essential to proper business management.
A bookkeeper will be able to record and track day-to-day expenses and receipts of your business. He or she may do these by hand, or use one of the online software solutions such as QuickBooks or Quicken to automate the posting of your transactions. You may choose to have a bookkeeper come to your place of business to do your work on a regular basis (once a week, once a month) or many bookkeepers can work virtually and handle all the work from their laptop or desktop office. Each week or month, you will receive reports that show your revenues and expenses for the period. You can use these reports to compare your financial health from month-to-month or year-to-year and track progress towards your profit goals.
A bookkeeper can also assist you with your company’s payroll. Payroll is a time consuming and very complicated accounting task. There are tax deposit requirements for the federal government and state governments that require specialized knowledge and strict adherence to filing deadlines. Most business owners cannot do this job adequately and run a business at the same time. Penalties for payroll filing mistakes are hefty and a bookkeeper can alleviate the time and stress associated with payroll generation.
Other functions a bookkeeper can perform include cash management and merchant service assistance. Working with your bank and your credit card processor can be time consuming and a qualified bookkeeper can assist you with these activities so you can concentrate on making money in your business instead of managing processes.
Your bookkeeper may segue into a trusted consultant over time, providing you with independent insight and another point of view. Few will know your business’ finances as intimately as your bookkeeper and he or she can become a most valued member of your administrative team.