Updated: Nov 11, 2021
1. More Time to Focus on Clients and Sales
Unless you know the ins and outs of the accounting system, it can be a time consuming task. Processing receipts, vendor invoices, payments, credit card and bank reconciliations, and tracking particular job expenses are all just a small part of the overall task, yet each can take quite a bit of time. A skilled, efficient bookkeeper cuts down on this time and increases the accuracy and detail of the transactions involved.
2. Qualify for Financing
If you think you might need or want financing in the future, a bookkeeper can help make sure your books are in order. Typically, a loan application requires in-depth records of your company’s finances to get a better understanding of your company’s financial health and needs. These finances might cover anywhere from several months to several years depending on the loan terms and amount. Having an accurate financial picture of your business will reduce the chances of the bank denying your application and enable you to spot when and how much additional capital you need.
3. Help With Invoicing
A good bookkeeper has the ability to make sure your customer’s invoices go out on time, track customer payments, and most importantly, help you collect late payment or outstanding balances. This in turn, helps increase your company’s cash flow and growth.
4) Help Tracking and Paying Vendors
If you find it not only time consuming, but overwhelming to key in and pay the seemingly constant stream of invoices, a bookkeeper is the right thing for you. Bookkeepers can help you set up payments online, automatic or not, or offer a check printing service at an additional cost for those who prefer old school methods.
5) Proper Categorization
Sometimes it is tempting to lump everything on a receipt under one account and move on. This is wrong and can get you in trouble down the road, both with the IRS and potential financiers. A bookkeeper helps eliminate this issue by combing through your invoices and receipts and allocating the items to your company’s accounts correctly.