Does Your Small Business Need a Bookkeeper?

small business office co-workers

In order to succeed in business, you need to keep a tight control of your money. You need to know

  • who your most and least profitable clients are and
  • what categories of expenses are eating away at your profits.

Come tax time you also need accurate records to make sure you pay the proper amount of tax–and no more than your fair share.

What to Expect from a Good Bookkeeper

Your in-house bookkeeper or outside bookkeeping service should record every sale, purchase, payment and receipt. They should keep this information in ledgers using standard accounting practices. You should 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 you are not getting all this, it is time to hire an outside professional bookkeeper.

Most people who start businesses have a passion for what they are making or selling, or the services they provide. They often do not have the skills or interest needed to keep careful, timely financial records. But without diligent bookkeeping,

  1. transactions can go unrecorded,
  2. mistakes can be made and
  3. crucial details can be lost.

Small problems can become crises if not caught in time.

Beyond Daily Transactions

Competent bookkeepers and bookkeeping companies like BookWerksTM can help you make sense of the numbers. They may also be able to suggest tools to streamline your workflow. They can 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. Accountants often provide high-level business guidance as well.

If you use cloud-based accounting software, all this can be done securely from anywhere, anytime.

Selecting the Right Resource

As the bookkeeper will have access to all your financial information, you want to make sure to hire a trustworthy person or service–that will keep your financial picture private.

Ask a colleague or favorite client who they use. If you have a CPA, they may have bookkeepers they like.

Always check references, even if the person who made the recommendation is a close friend. Meet with the candidates in person to and make sure they can put financial terms into language you can understand.

At BookWerks TM, we are always happy to provide references in your field.

The right Cincinnati bookkeeping service for your company will be affordable. Contact BookWerks TM today, where you know you will pay a reasonable price.