When you decided to open your business, you did it because you knew you could offer a product or service better than the other guys.
What you didn’t anticipate was the ‘behind-the-scenes’ work that comes along with owning and running your own business, specifically record keeping aka bookkeeping.
With all of the confusing tax laws, accurate record keeping seems like a hassle and an unnecessary burden to add to your already huge load. But the truth is it’s very important and necessary.
Here are the top reasons you need a bookkeeper:
When you create and register your business, you accept the responsibility to comply with federal and local law. There are various forms and deadlines to keep track of and if you miss any deadline, the government will gladly remind you with a notice and additional fees.
The IRS imposes fees for late filing, for no-filing, plus penalties and interest. A $914 liability could quickly turn into a $1,987 debt, with $781 in penalties, $242 in interest and $50 late-filing fee.
Sustain & Grow
With great accounting software, like QuickBooks®, you can generate reports after accurately entering transactions. With these reports, you can:
- understand where the money goes in clear numbers and percentages
- identify changes in income or expenses and make adjustments in time
- track customers who owe you money
- foresee expenses and prepare for them
- construct effective and efficient pricing of products and services
You want to be prepared to jump at the right opportunity when it presents itself. If your financial data is in order, you are one step ahead. All banks and creditors require financial reports for a loan application. Someone interested in investing in or buying your business will require financial reports also. You will lose precious time gathering all the information that should have been recorded as each month passed. Worst yet, you could loss an opportunity altogether because financial data wasn’t properly recorded on a regular basis.