Small Business Bookkeeping Struggles and how Outsourcing can Make Them go Away

Small businesses such as restaurants, landscaping services and dentist offices often struggle with bookkeeping due to limited resources, expertise and time.

Here are some common challenges our small business clients have faced:

1. Lack of accounting knowledge – Many small business owners don’t have formal accounting training, making it difficult to manage books accurately and comply with financial regulations.

2. Time constraints – Even when business owners have bookkeeping expertise, the need to juggle multiple responsibilities leaves little time for careful and timely bookkeeping. When you are stressed or rushed, you are more likely to make costly errors, miss deadlines and gloss over important financial trends. Besides, bookkeeping is a non-revenue generating task.

3. Cash flow management – Tracking income and expenses properly is critical, but many small businesses struggle with cash flow, which can make it hard to cover bills, payroll and taxes.

4. Inconsistent record-keeping – Failing to keep accurate and up-to-date records can lead to financial mismanagement, missed deductions and compliance issues.

5. Mixing personal and business finances – Many small business owners use the same bank accounts or credit cards for personal and business expenses, making bookkeeping and tax reporting more complicated.

6. Tracking expenses and receipts – Many small businesses struggle with organizing and recording receipts, making it difficult to track deductible expenses accurately.

7. Choosing the appropriate accounting software – With so many bookkeeping and accounting software options, small businesses may struggle to find the best fit for their needs.

8. Budgeting and financial planning – Without proper bookkeeping, small businesses may struggle to create accurate budgets and financial forecasts, leading to poor financial decision-making.

9. Lack of internal controls – Many small businesses lack checks and balances to prevent fraud or errors, increasing the risk of financial mismanagement.

• Preparing for audits and loans – Disorganized financial records make it difficult to apply for business loans or prepare for potential audits by tax authorities.

The solution to all these challenges? A bookkeeping service dedicated to small business clients

An independent professional bookkeeping service near you like BookWerks^TM can make all these issues disappear in short order.

• We have the knowledge needed to track your income and expenses properly, and provide timely, accurate financial reports. Usually, we can assign a member of our staff who has experience in your field to your account.

• As professional bookkeepers (that’s all we do), we can usually work more efficiently than a member of your staff can. Using an outside bookkeeping source is almost always a cost-effective decision that frees up owners’ time for more important tasks like serving customers and planning growth.

• We provide timely reports like Profit and Loss, Balance Sheets and Cash Flow statements, so you always know where you stand financially.

• Providing these reports on time is a priority at BookWerks^TM. And since your records are held in the cloud, you can access them from anywhere at any time.

• The information you need at tax time will be ready well in advance of the deadline so your CPA can file your taxes correctly.

• Every financial transaction you make is automatically recorded directly from your bank accounts and credit cards, so you always know where you stand.

• With accurate, up-to-date financial data delivered to your inbox weekly or monthly, it is easier to plan for the future.

Still wondering “why should I use a bookkeeping service?” If you’d like to learn more about how professional, independent bookkeeping can help your business grow, give us a call. We’ll be happy to set up a free, no-obligation meeting to share details of how we serve businesses like yours.