How Timely and Accurate Financials Can Help Grow your Business

To succeed in business, you need a trusted bookkeeper. Many small business owners outsource to professional bookkeeping services like BookWerks^TM, 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:

a general ledger
a balance sheet
a cash flow statement
an income statement

How BookWerks^TM 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 BookWerks^TM, 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 BookWerks^TM for timely and accurate financials, the backbone of a well-managed business.