Small business owners often feel the need to handle their entire business themselves. I get it, your business is your baby. But sometimes it is more beneficial to you to outsource some of those important tasks. Bookkeeping is one of those tasks. Here are some reasons you may want to consider contracting a virtual bookkeeper:
1. Specific Financial Knowledge
You have received training and been educated specifically for your profession: massage therapy, herbalism, psychology, yoga instruction etc. Even though you have a fair idea of your business’s finances, you likely lack the specific accounting knowledge required to classify all of your income and expenses accurately. This can have negative financial implications at tax time, and prevent you from truly having an accurate picture of how your business is doing.
2. Save Money
Keep track of bills and avoid overdue penalties. Identify areas where your expenses are outstripping your budget and find creative ways to minimize those expenses. Tracking popular services and problem areas will allow you to capitalize on your strengths, and address weaknesses effectively. Have all of your reports ready to go for your accountant at tax time.
3. Financial Reporting
Bookkeepers can provide you with customized reports illustrating the financial health of your business, and help to identify opportunities for improvement. These reports can also be prepared for your accountant come tax time to make filing simpler, and less expensive.
4. Budgeting and Benchmarking
Bookkeepers are experts at helping you develop and stick to an advantageous budget for your business. This helps keep your business practices in line with your goals. Compare your costs and services to other similar businesses to identify opportunities to maximize your income potential.
Most importantly, hiring a bookkeeper frees up your time so that you can do the work you love to do. Time that you would normally spend doing the books on your own can be much more effectively spent on the real work of your business, while you have a trained expert efficiently handling the finances.
Hiring a professional bookkeeper can pay for itself, both in income/expense optimization and the freedom for you to focus on serving your clients.