One Less Hat to Wear

“Just Because You’re Good at One Thing Doesn't Mean That You’re Good at Everything.”

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One of the biggest tax issues for small business owners, I see, is not understanding how to maintain adequate books and records for their business. This can quickly create a money pit that swallows up much of that hard earned money in tax liabilities and other unnecessary “expenses” that can be avoided. Just because you are good at one thing does not mean that you are good at everything. Understanding and acknowledging this simple fact is something small business owners need to accept, especially if accounting, is not their “thing.”

Small business owners often take on several roles within the business for assorted reasons. However, as your business grows and you get busier, it often becomes difficult to track expenses and keep your books up to date. Many of us have fallen into the trap of “Oh, I’ll get to it later when I’m not so busy” …. only to find “later” turns into days, weeks, months and in extreme cases…. years.? Not only does this put you at risk of creating incorrect profit and loss statements but can eventually generate so much additional work for yourself. I am sure your skills and talents can be better utilized elsewhere in your business.

Let me explain further. In my experience, business owners who do their own books typically do not track all their expenses and sometimes do not properly categorize those expenses. This creates an inaccuracy in your profits where they may seem to be higher than they are. In turn, this can potentially increase your tax liability. An increased tax liability means more money in the pockets of the IRS and less money in yours. I do not believe anyone has this in mind as part of their business plan.

This is easily avoidable by simply considering hiring a professional bookkeeper or accountant who can join forces with you to make sure that you are staying in compliance, maximizing your tax savings, and tracking your numbers correctly. The amount of money you will save overall far outweighs the cost to you and your business in the short run. Utilizing a bookkeeper does not mean that you are lazy, incapable or any other negative adjective you can think of to describe your decision to hire a bookkeeper.

We all know that time is money for small business owners. Just because you are good at one thing does not mean that you are good at everything. Add a reputable bookkeeping service to your business toolbox and spend more of your valuable time building and growing your business. It will prove to be a profitable decision for your business.