How Timely and Accurate Financials Can Help Grow your Business

cash money

To succeed in business, you need a trusted bookkeeper. Many small business owners outsource to professional bookkeeping services like BookWerksTM, which is based in Cincinnati but serves clients all over the US and beyond remotely.

Whether you do your bookkeeping in-house or outsource it, you need timely and accurate financial reports in order to make smart decisions, manage cash flow properly, pay only what you owe in taxes, and more.

At a minimum, your bookkeeper needs to provide the following at least monthly:

How BookWerksTM helps small business owners

Here are three small business owners who have found our help to be invaluable:

The Maker

This solopreneur handcrafts clothing. She is too busy to classify expenses and reconcile her bank and credit card accounts, but needs to know where she stands at all times. The regular financial statements she gets from us tell the story of how she is doing.

The Professional

This dentist purchased a dental practice a few years ago. He has employees to pay, supplies to buy and patients to take care of. He needs financial statements and analysis that show how the practice is performing. We track his income and expenses, and reconcile his bank accounts. When it comes time buy new equipment, we’ll provide advice based on his financial trends.

The Evolvers

This couple has three restaurant locations. We enter their vendor invoices accurately and on time, and send reports with food/beverage costs and labor margins for each location, which are critical to their day-to-day operations.

Seven ways a good bookkeeper can help your business succeed

1. Decision-Making

  • Up-to-date financials allow business owners to create accurate budgets and forecasts, which are essential for planning future growth and managing cash flow.
  • Accurate financial data helps in spotting trends, such as rising costs or declining sales, allowing for timely adjustments.
  • Decisions regarding investments, whether in new equipment, marketing or staff, rely heavily on current financial information.

2. Cash Flow Management

  • Regular monitoring of financials ensures you can anticipate and avoid cash flow shortages, which are a common cause of small business failures.
  • Knowing your current financial situation helps in timing payments to suppliers and managing receivables effectively.

3. Tax Compliance and Reporting

  • Up-to-date financial records are necessary for accurate and timely tax filings, so you can avoid penalties and interest charges. With an expert bookkeeping service like BookWerksTM, all your data is ready for your CPA at tax time.
  • Proper financial records ensure that you claim all eligible deductions, reducing your business’s tax liability.

4. Financing

  • Lenders and investors need accurate financial statements to assess the viability of a business before providing funding.
  • Consistently maintaining accurate financials builds credibility with banks, investors and other stakeholders, making it easier to secure financing when needed.

5. Compliance and Legal Obligations

  • Many regulations require businesses to maintain accurate financial records. Non-compliance can lead to legal issues or fines.
  • In the event of an audit, having accurate financial records from an expert bookkeeping company ensures that the process goes smoothly and reduces the risk of negative outcomes.

6. Measuring Performance

  • Financial statements provide insights into profitability, enabling you to evaluate whether your operations are meeting your financial goals.
  • Regular financial reviews allow small businesses to benchmark their performance against industry standards or competitors.

7. Crisis Management

  • During economic downturns or unexpected challenges, timely financial data allows businesses to make quick adjustments.
  • Financials can be used to model different scenarios, helping you prepare for potential crises.

Choose a trusted bookkeeping service like BookWerksTM for timely and accurate financials, the backbone of a well-managed business.

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Finding the Best Bookkeeper for Dental Practices

The best bookkeeping company for dental practices will manage financial records specific to the industry while ensuring regulatory compliance and financial health. Dentists have unique bookkeeping needs due to their mix of recurring services, one-time procedures, insurance billing and high-cost equipment purchases. As a premier bookkeeper for dental practices, BookWerksTM provides the following: tracking income from patients (categorizing income sources such as routine cleanings, procedures and elective services); following up on recording payments for office supplies, utilities, dental materials and lab fees; tracking high-value assets like dental chairs, X-ray machines and sterilization equipment (and calculating their depreciation for tax purposes and long-term financial planning); ensuring all transactions match bank and credit card statements–identifying discrepancies and correcting errors promptly; and preparing profit and loss statements, balance sheets and cash flow statements, providing insights into the practice’s profitability and financial trends.