Plus, if your books aren't in order, you'll have tons of bookkeeping to do during tax season, making an already stressful time of year even more challenging when you need tax preparation. Without updated books, you don't know what you're making and what steps to take to increase your income. As a result, understanding cash flow and measuring business health can be difficult. In the event that your bookkeeping falls behind, your books fail to reflect your actual financial situation. If your business reaches any of the following points, you need a bookkeeper: If your books are never up to date Keeping track of high volumes of transactions can be time-consuming for growing businesses. Get Help With Your Bookkeeping When does your business need a bookkeeper? Helpful Resource: What are the benefits of bookkeeping? In the end, a bookkeeper maintains your books so you or your accountant can see where money is coming from and where it is going. Comply with federal and state laws and regulations.Ensure that all tax documents are prepared before filing your return.Maintain accurate financial records for your company in order to facilitate better reporting and analysis.Produce balance sheets, income statements, and other financial statements that show financial health and trends.Prepare invoices for customers and manage accounts receivable (AR).Manage payments to vendors, financial institutions, etc., and accounts payable (AP).Reconcile your books with the monthly balances you receive from your financial institutions and correct discrepancies.Keep a general ledger and record all accounting data (i.e., track and record incoming debits and outgoing credits).When strategic analysis and forecasting become priorities, they may also serve as the foundation for a stronger finance team. Organizing financial processes, preparing financial statements, and presenting data for future uses, like budgeting or fundraising, are key responsibilities of a bookkeeper. Get Help With Your Bookkeeping What does a bookkeeper do? So, does your business need a bookkeeper? Let's examine a few factors to consider when answering that question. Legal matters shouldn't be handled by anyone other than a lawyer, and bookkeeping shouldn't be handled by anyone other than a bookkeeper. One of the most important tools in your toolbox is a bookkeeping service. Financial help, such as a bookkeeper, is especially hard to justify.īut, with a growing business, you can only handle bookkeeping on your own for a limited period of time.Įveryone wants to utilize tools that can make their business more competitive and profitable. The entrepreneurial spirit thrives on a DIY mentality: Do everything yourself, and don't spend a dime until you absolutely have to.
A good question to ask yourself is, “Do I need a bookkeeper?”. You may, however, find that you spend more time maintaining your books than running your business. Keeping track of your finances and accounts is key to the success of any business.
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