Why Your Business Needs A Dedicated Bookkeeper

Your business is busier than ever, you know your business is growing but at times you wonder why the bank accounts are not growing? How do you get out of this spin cycle and grow both your business and bank account? 

Find a bookkeeper that can handle all the bookkeeping transactions as well as run reports to show you what is going on in your business and how to get out of the spin cycle. 

There are many reasons why hiring a bookkeeper will help you and your business endeavors. You’ve likely heard in business you have to spend money to make money. We believe that by spending money in smart places, you will make money. And that’s where hiring a bookkeeper comes into play. 

You Will Save Time, Money, and a headache

Your bookkeeper will already understand your software and accounting. The headache of wondering whether or not you’re tracking all of your money will fade. You will put yourself in a position to relax and focus on other matters at hand. Let them handle the finances and track everything properly. 

By allowing a bookkeeper to handle that aspect of the business, you allow yourself and other members of your team to focus on other areas that they are probably better at doing. This will save you time, money, and a lot of unnecessary stress.

They Will Help You Create A Financially Strong Business

As an owner/and or operator you are busy, you need to be in the know of everything but not in the weeds of it. You need solid reports delivered to you regularly with the opportunity to ask questions. This is where a bookkeeper comes in. They are in the weeds of daily finances and can answer questions about your business finances.  

There’s a good chance you don’t even understand all of the financial reports and that is ok-your not expected to, that is not your expertise, running your business is. A bookkeeper can explain why items are categorized the way they are and what these reports mean. 

There are 3 important financial reports every business should be viewing regularly to see the full financial health of their business. 

• Profit & Loss Statements- This statement strictly shows the income and expenses of your business. When items are being recorded and categorized properly, this report gives insight as to which business practices (types of income streams or even clients) are your winners, and which are your losers (where are you unnecessarily overspending?). Running a monthly P&L report is a great habit, but it is not enough. You can have a pretty P&L but still not be in great financial health. This leads us to the balance sheet.
• Balance Sheet- This report showcases all of your assets (things you own, ex. office equipment, building, etc.), liabilities (things you owe, ex. loans, credit cards, the sales tax you owe, etc.), and equity (what is leftover, ex. any money the owners have put in or money you have down on a large investment). Ideally, you want to have more equity than liabilities. The balance sheet is the equation of Assets = Liabilities + Equity. If these do not balance (are not equal), you need to take a deep dive into your books and find out why.
• Statement Of Cash Flows- So you have looked at your P&L and balance sheet but you’re still not sure where all of the money is going? The statement of cash flows will show you this. This report will show you all the activity of your operations, investments, and financials in regards to cash. It will essentially show where are the cash went over a certain period of time.

A consultative bookkeeper can also run some more custom reports such as KPI’s, (Key Performance Indicators) industry benchmarks, and trend analysis. These reports can help you focus on some particular areas of your business. 

Overall, having a bookkeeper solely dedicated to your business finances will more than pay for itself in the money you find, the money you save, and the areas of opportunity they will show you for growth.