When operating your own business you must watch every expense. Keeping track of every dollar earned and spent is an important time consuming task. Small business bookkeeping services are often viewed as another dollar spent. The value that a good team of accountants bring to your business can far outweigh the cost. Below are a few ways your business can benefit from having a good accounting team.
Small Business Bookkeeping Provides A Clear Picture
As a business owner, a clear, precise picture of the performance of your business is needed to make good sound decisions. Having an accountant prepare financial statements, including a monthly profit and loss statement and balance sheet, is vital to measuring the success of a business. This information will also give you direction on when to make an investment in employees, when to purchase equipment, or when and where to cut spending. An accountant will review the financial statements and offer advice that will help grow your business. They will also teach you how to read the financials so you know what margins, ratios, and other metrics to monitor in order to keep your business on track.
Small Business Bookkeeping Saves Time
As stated earlier, bookkeeping can be time consuming, especially for a plumber, chef, or dentist that has opened their own business because they have a passion for their profession. A good team of accountants can help you develop time saving processes and introduce you to software and apps that could make record keeping, billing your customer, and paying bills more efficient.
Hiring an accountant to perform bookkeeping, reconcile bank accounts, and handle payroll duties could save you a lot of time. The extra time will allow you to work on other areas of your business such as being a doctor, electrician, or machinist.
Small Business Bookkeeping Eliminates Year End Tax Surprises
A good accounting team will review your the financial performance of your business throughout the year and calculate a “tax projection” periodically. This allows them to consult with you about what to expect when your tax returns are prepared at year end. Having this knowledge will allow you to make necessary estimated tax payments throughout the year so at the end of the year you are not looking at a large tax bill you were not expecting.
Knowing your tax situation as the year progresses also gives you time to implement tax saving strategies. Receiving tax advice after your tax returns are filed leaves you no time to change the outcome.
Small Business Bookkeeping Prevents Penalties and Fines
Many business owners receive penalties or fines due to not filing a tax return. Failure to pay sales tax, employee tax, personal property tax, or income tax by the due date can also be costly. Often, as the owner, you get so busy working that you forget about taxes until it’s too late. Sometimes it’s merely a lack of knowledge regarding which taxes your business is required to pay and when they must be filed. Accountants have systems to make sure all your taxes are remitted in a timely without penalties and fines. We also have the knowledge of tax laws necessary to keep you on the right track.
Finding an accountant that fits your business model can often be a daunting task. We take the relationship to the next level through our proven methods and processes. If you are a small business owner and you are looking for a knowledgeable, well organized team of accountants, please reach out to learn more about the ways we can help. Don’t forget to subscribe to our blog so you don’t miss a single issue!