Do Any of These Apply to You?* Reconciling your monthly bank statements is a painful experience
* You never “get around” to doing your own bookkeeping until the day before taxes are due.
*You’re not entirely sure you’re doing the bookkeeping correctly.
*You don’t have a good or consistent system for invoicing your customers or keeping track of bills so you’re leaving money on the table.
*You can’t always get your bank account to reconcile exactly, so you end up entering adjustments at the end of the month and pray the numbers are close to reality.
*There is something on your financial statements you don’t understand.
*There are many things on your financial statements you don’t understand and you’re afraid these things are going to come back to haunt you in the future.
*Your accountant changed something in your files and you don’t understand what he or she did.
*You wish there was a way to track a certain type of expense or income better, but you don’t know how.
*You are occasionally/sometimes/often confused by Quickbooks.
*You don’t know what a balance sheet is.
*Your balance sheet is incorrect.
Most small business owners do their own bookkeeping. They handle the financial data and recording themselves even though many have not been trained to do this. Come tax time, they hand their bookkeeping over to a CPA.
We’ve heard small business owners say “My business is small. I only have a few transactions a month. When I get big enough to hire employees, I’ll hire an office assistant to do the bookkeeping for me.”
There are two problems with this strategy.
First, by the time a business reaches that point, it will be much harder to adjust or to repair past bookkeeping practices. Don’t underestimate how long it can take to straighten out books that are not accurate. It can take months and hundreds of dollars to get the bookkeeping back on track.
Second, the typical office assistant does not have the expertise to solve these kinds of problems.
That is why you should have a qualified bookkeeper to help you out, especially at the beginning.
A competent bookkeeper will do the following for you, saving tons of time, money and aggravation in the future:
*Your bookkeeper will help you set up the books correctly right from the start.
*Your bookkeeper will customize your accounting to match your business
*Your bookkeeper will produce useful and customized information on a regular basis so you can make informed business decisions and not “fly blind”.
*Your bookkeeper will provide you with necessary training and help you to prepare for future growth.
And believe me, the sooner it’s done, the easier and cheaper it will be for your business. Why? Because if your bookkeeping is accurate and timely, you’ll make better management decisions.
You’ll also be able to save money on accountant’s fees because it will take a lot less time for your accountant to complete your taxes. That savings alone could be thousands of dollars.
You’re probably thinking “What’s the difference between bookkeeping and accounting?”.
Bookkeeping encompasses the day-to-day financial record keeping of the business.
Accounting is the interpretation of those records.
It’s a good idea to outsource your business taxes to a professional tax preparer. It is an equally good idea to have your bookkeeping reviewed by someone with experience in the most effective and efficient ways of record keeping.
Don’t let bookkeeping stand in the way of your success.
Great bookkeepers help business owners sleep better. My goal is to give you the tools you need to focus on making great business decisions.
With all the new technology available, your bookkeeper doesn’t even have to be in your hometown.