Does Your Small Business Need a Bookkeeper?

To succeed in business, you need to keep a close eye on your financial outlook. That means being able to understand key financial information, like:

• Who your most and least profitable clients are
• What categories of expenses are eating away at your profits
• What service lines or products have the best margins of return

Come tax time, you’ll also need accurate records to make sure you pay the proper amount of taxes so that you can both meet requirements and not pay more than your fair share.

If staying on top of all this financial information sounds overwhelming, don’t worry! That’s where a professional bookkeeper can step in to help.

What to Expect from a Good Bookkeeper

A good in-house bookkeeper or outside bookkeeping service will record every sale, purchase, payment and receipt. They will keep this information in ledgers using standard accounting practices. You should also expect to get weekly or monthly reports from them, such as income statements, profit and loss statements, and balance sheets to show how things are going.

If your bookkeeper is not providing you with these services, it might be time to find a new outsourced bookkeeping partner.   

Most people who start businesses have a passion for what they are making or selling, not for keeping careful, timely financial records. When you hire an outside bookkeeper, you can let go of trying to become a bookkeeper yourself and stay focused on the tasks that matter most.

Beyond Daily Transactions

Competent bookkeepers and bookkeeping companies like BookWerks™ can help you make sense of the numbers. They can also suggest tools to streamline your workflow. They’ll help you handle payroll, clean up your records and check frequently for mistakes. A good bookkeeper is a critical partner for keeping your business running smoothly.

Bookkeeping and accounting are complementary services. Bookkeepers handle day-to-day record-keeping, making sure your accounts are maintained at a high standard of detail and accuracy. They can advise you on issues such as a cash flow problem or an upcoming invoice.

Accountants use the information kept by your bookkeeper to file taxes and other official reports. A bookkeeper will ensure that your financial records are ready for your accountant come tax time or business strategy time.

And, if you use cloud-based accounting software, collaboration with your virtual bookkeeper can be done securely from anywhere, anytime.

Selecting the Right Resource

There are so many bookkeeping and accounting options out there for small business owners. How do you know if you’re choosing the right one?

The top factor you should consider is trust. Your bookkeeper will have access to all of your financial information, so you want to make sure to hire a service that you truly trust with sensitive data.

You can find a reputable bookkeeper by asking colleagues, clients, or your CPA for references. You can also do research on services you’re considering to see what past and current clients have to say. You should also consider meeting with the bookkeeper, either in person or through a virtual call, to make sure they are a good fit for your business.

Ready to Learn More?

At BookWerks™, we support small business owners with virtual bookkeeping services that are trustworthy, accurate, and affordable. Contact BookWerks™ today to learn more about our bookkeeping staff and pricing options.