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Most business owners understand that they must wear many hats and have to be involved in areas of their business that they do not excel in. Especially startups that may not have the resources to bring in professionals for areas such as taxes, bookkeeping, and human resources although very important. Typically, the business owner develops the “I can do that attitude” which, in many cases, leads to failure in a very short time. Hiring a full-time bookkeeper requires the commitment for salary, benefits, and payroll taxes, and in many cases is beyond the resources that are available. The answer is quite simple; hire a bookkeeping service.
- Do What You do Best – Unless your business is bookkeeping, you and your team members should concentrate on those things that you do best. For most startups, those things that you excel at are product or service related, and has nothing to do with bookkeeping. Henry Ford, Steve Jobs, and Donald Trump did not create massive companies by doing their bookkeeping. They spent their time doing what they excelled at and remained focused on the rainmaking side of their businesses.
- Regulatory Requirements – Every business in the 21st century is inundated with regulatory requirements mandated by the jurisdiction in which you operate. Regulations are not things that you should take with a “get around to it” Your bookkeeping service can be entrusted with the regulatory duties while you concentrate on what brought you to the party in the first place. Failing to properly report sales and payroll taxes can land you, as the responsible party, in the hot seat and could jeopardize your ability to operate the business you’ve struggled to build.
- Accurate Business Planning – Every business plan calls for accurate forecasting of revenues and expenses that must be based on current and accurate data. Your bookkeeping service will become a well of accurate and powerful data to allow you to make informed decisions and improve you financial planning and management. Your business plan should become a tool for your business, not just something you feel you’re supposed to complete.
- Know what You Owe and Who Owes You – Even if your business is considered a “cash business” there will still be payables and receivables that must be dealt with frequently. The professional bookkeeper will keep these records up to date and can even assist with collections and negotiating debt. Having a third party between you and your clients also provides a buffer that can preserve relationships when payable and receivable issues are presented and must be resolved. “Talk to my Bookkeeper” can be a very good way to deflect a conversation your personality is not equipped to deal with in a positive manner.
- Impressions Count – When the time comes for you to expand your business to another level, bankers and investors are likely to be impressed that you had the good business sense to hire a trusted and reputable bookkeeping service to manage your accounting requirements. In many cases, your bookkeeping service can represent your interests and speak directly with lenders and investors and will typically know in advance the information required to make your expansion happen.
- Having a Clearer Picture – Since most business owners wear many hats and know a little about a lot of things, their company’s “picture” may not be completely in focus. A bookkeeping service can provide a clearer financial picture of your company and enhance your decision-making Having access to up-to-date records is much more efficient than stopping what you are best at, gathering information that may or may not be up to date, and then stepping back to see the financial picture of the business.
Certainly, every business owner or manager wants to take advantage of the tools that will make their business more competitive and profitable. A bookkeeping service can be one of the most important tools in your tool box. You shouldn’t handle your own legal affairs unless you’re a lawyer, and you shouldn’t do your own bookkeeping unless you’re a bookkeeper.