As a small business owner, you’re likely a fan of the do-it-yourself lifestyle and used to juggling an ever-increasing number of tasks. While managing finances may not be your favorite, putting it off has real repercussions.
You may feel confident with payroll and bookkeeping software, or think that can’t afford to hire a bookkeeper, but they can be incredibly helpful in ensuring things are done well and alleviate some of your stress. Here are five ways a bookkeeper can save you money and help you run your business more efficiently:
1. Makes Managing Your Profit Margin Possible
As a small business owner, you’re probably used to working with razor-thin profit margins. A professional bookkeeper can help you keep track of these margins and offer insight on how to leverage them for greater returns on operating expenses.
A bookkeeper can also manage your monthly transactions, handle payroll, take care of government remittances, and ensure that bills are paid on time, freeing you up to concentrate on growing your business.
2. Lets You Take a Load Off
Running a small business is no easy task. The first few years are often the most difficult, as many small business owners struggle to make ends meet. Being forced to juggle multiple roles at once can translate into neglecting aspects of your business, like administration. Fortunately, this is a task that bookkeepers can help with.
3. Alleviates the Stress of Taxes
The collective panic business owners face during tax season is no laughing matter. While it’s something we all like to avoid, taxes are an essential part of business.
Employing a bookkeeper, even temporarily, means the accurate and timely reporting of your expenses, write-offs, salaries, and budgets. This makes tax season less stressful for you and ensures things are done properly.
4. It’s Only Temporary
Unless your business employs over 30 employees or your revenue exceeds one million dollars annually, it’s unlikely you’ll have enough work to employ a bookkeeper full-time.
Most small business owners can get away with outsourcing their bookkeeping, allowing them to save money. Calling in the help of a bookkeeper for tax season can be a beneficial and temporary solution, while your business grows.
5. Peace of Mind
Beyond the tangible benefits to your business, bookkeepers can also provide you with peace of mind.
Jacquie Johnston, VP of the Canadian Bookkeepers Association, recalls receiving countless end-of-fiscal-year phone calls from frantic small business owners. On the benefits of hiring an external bookkeeper, she says, “Flexible scheduling and hourly rates allow you to pay for only what you need—nothing more, nothing less.”
While employing a bookkeeper may be a difficult decision for your small business, the benefits often outweigh the costs, as you’ll save time, money, and reduce some of the stress associated with running your business.
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