10 Ways Bookkeepers Benefit Small Businesses
Nearly 82% of all small businesses fail because of poor cash flow management, according to a US Bank study. Another study claims that almost 60% of business owners feel they have inadequate accounting knowledge.
Despite the telling statistics, business owners resist hiring a professional bookkeeper for their accounting needs. Here are ten ways a bookkeeper can add value to your business:
Handling day-to-day Accounts
A bookkeeper will track and maintain records for every transaction. They will make sure that you have an accurate understanding of your business finances at all times. It not only gives you peace of mind that your books are kept accurately, but it also gives you back valuable time to be working in your business, not in your books.
No one wants the IRS to show up at their doorstep to investigate tax fraud. A professional bookkeeper will maintain your records as per rules to avoid potential interventions by tax authorities.
A delay in filing taxes can result in penalties and lawsuits. A professional bookkeeper will keep your records up to date so that you are ready to file your taxes on time to avoid such circumstances. They will also advise on all eligible deductions to lower your tax payments.
Managing Accounts Receivables
You may not always have the time to pursue your debtors for overdue invoices. A bookkeeper will take care of your accounts receivables by chasing clients with unpaid invoices, ensuring a steady cash inflow.
Preparing Financial Statements
A bookkeeper will prepare and maintain financial statements like the profit and loss account, balance sheet, and cash flow records to document your business’s expenses and revenues. We also provide full-service financial planning for profit and loss accounts.
Payroll is an essential monthly task for all businesses. A professional bookkeeper will always stay on top of your organization’s payroll activities and give you valuable insights whenever needed.
Managing Foreign Currency Transactions
If your business deals in an overseas market, you need to accommodate varying exchange rates with every transaction. Bookkeepers use professional digital bookkeeping apps to analyze and convert currencies accurately within seconds.
Maintaining Inventory Records
Besides keeping a tab on accounts receivables and invoices, bookkeepers also monitor sales and inventory. They will maintain inventory records and notify you in case of any discrepancies.
A professional bookkeeper will help you plan your finances better and monitor your cash flow to make sure you don’t fall short of cash to meet your business’s daily needs. They can also provide you with a robust cash flow roadmap for your business’s future needs.
Preparing Books for the Accountant
A bookkeeper keeps all your financial documents up to date at all times as accountants rely on these documents to create financial and tax plans for your business.
About Venus Michael Account-Ability
If you are looking for a professional bookkeeping firm to take care of your business finances in the Texas region, Venus Michael Account-Ability is your one-stop destination.
Venus Michael is among the best bookkeepers and accredited Profit First professionals with over 20 years of experience. Let her take care of your bookkeeping and accounting needs so you can focus on growing your business. Fill our online contact form to book a free consultation today. You can also reach out to us at 512-791-3747 to learn more.