If you’re a small business owner, chances are that you’re a fan of the do-it-yourself lifestyle. After all, you went into business for yourself. But while many small business owners love the freedom that owning their own business brings to them, it also means that expenses need to be kept to a minimum.
This frame of mind is certainly important in ensuring the success of your small business, as 30 per cent of small businesses are estimated to fail within 24 months because of increased expenses and low profits. However, there are times that being frugal can do more harm than good.
Owning and running your own business means handling an ever-increasing number of tasks, but putting off managing your finances has real repercussions. Come tax season, what started off as small molehill of paperwork can turn into a mountain of unbalanced ledgers.
But while many small business owners feel confident with payroll and bookkeeping software and that they can’t afford to hire a bookkeeper, the reality is that this attitude can do more harm than good.
Here are five reasons why hiring a bookkeeper may be the best choice for your business.
1. Makes Managing Your Profit Margin Possible
Owning a small business often means working with razor-thin profit margins, and a professional bookkeeper can keep track of these margins while offering insight on how to leverage them into larger 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, especially in its early years, is no easy task. In fact, the first few years are often the most difficult, and many small business owners struggle to make ends meet. This often means juggling multiple tasks at once, which can translate into neglecting administration, a task that bookkeepers can help with.
3. Alleviates the Stress of Taxes
The collective panic of business owners across Canada that comes during tax season is no laughing matter. We would all like to avoid it, but taxes are a necessary part of business. Employing a bookkeeper, even on a temporary basis, means accurate and timely reporting of your expenses, write-offs, salaries and budgets.
4. It’s Only Temporary
The majority of small business owners can get away with outsourcing their bookkeeping operations, which allows you to save money. And unless your business employs over 30 employees or your revenues exceed $1 million annually, it’s unlikely you will have enough work to employ a full-time bookkeeper. Calling in the help of a bookkeeper for tax season can be a beneficial and temporary solution to this.
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 a small business owner, the decision may be worth it, as it could save you time, money and reduce some of the stress of running your small business.
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