Why do you need a bookkeeper? Many small business owners ask themselves this critical question.
Two words: time and money.
A qualified bookkeeper can save you both. OK. Time is a given – and wouldn’t you rather spend your evenings enjoying your family, friends, and hobbies than dealing with a pile of paperwork after working all day on your business? How much money is that downtime worth?
But I said a bookkeeper would save you money! So how do you save money by spending it on a bookkeeper? Well, a qualified bookkeeper does more than just crunch numbers so you can pay your taxes and keep CRA off your back (although that is important of itself).
Managing Profit Margins
A qualified bookkeeper is an active partner in ensuring the success of your company. Your bookkeeper can help you keep an eye on profit margins – and bring your attention to depleting profit margins. This can allow you to take proactive measures to bring your profit margins back in line and keep your company on track.
Managing your obligations
Your bookkeeper will keep you current with vendors and government remittances. This means reduced interest, reduced penalties, and, when it makes sense, this can allow you to take advantage of early payment discounts – putting money back into your pocket.
Managing your income streams
Your bookkeeper can help you manage your credit granting processes. It’s a great feeling to get the job but, let’s face it, in the business world, a job well done is not its own reward. Getting paid is! Your bookkeeper can manage your receivables, ensuring only worthy clients get credit and making sure you get paid for the work that is done.
Managing your cash flow
Your bookkeeper can keep a critical eye on incoming and outgoing funds and help you ensure you always have cash on hand to meet your obligations. This means no sudden credit card use, your debt and lines of credit can be managed, and you don’t have to scramble to make payroll. Your bookkeeper will help you make sure you have it in the bank.
Processes and Controls
All businesses, whether large or small, need processes and controls. Your goal is grow your business, but a business that grows without implementing controls and truly understanding their numbers, profits, and ratios is at risk of failing from too much of a good thing. Processes and controls, implemented at the start, allow any small business to take advantage of opportunities as they present themselves and be well situated to handle their growth seamlessly.
The question isn’t “Why do you need a bookkeeper?” The truth is that you can’t afford to be without one!