Why Professional Bookkeeping is Smart Business

female small business owners

Many small business owners mistakenly think of bookkeeping as only data entry, and trust the function to an unqualified employee. Accounting software is making bookkeeping much easier than in years past, but it’s still critical that the tasks are handled by someone skilled in the practice.

5 Reasons Good Bookkeeping is so Important

  1. Bookkeeping helps keep business and personal finances separate. Creating this divide is crucial to business growth, and also ensures you’re not held personally liable for any debts or business-related issues.
  2. A properly-trained bookkeeper spots errors quickly. By managing your transactions and reconciliation carefully, they will easily see a mistake that’s been made by data entry or your bank—helping you avoid the hassle of late fees or a tax audit.
  3. Careful bookkeeping puts your business in the best position to streamline tax processes, take maximum deductions and work efficiently with tax pros.
  4. Well-kept books can give you a sense of your progress and overall financial health. This big picture can guide you in skillfully improving sales, operations or processes you want to change.
  5. The organizational piece of bookkeeping is particularly key when you need a loan, are seeking an investor, want to buy another business or procure new equipment. These processes go smoothly when your documents are accurate and close at hand.

Bookkeeping that Provides Peace of Mind

Using a reputable professional bookkeeping service has a number of advantages over other options for financial record-keeping:

  • You know your books are in good hands: everything will be kept accurately up-to-date
  • You will receive reports on-time, on a weekly or monthly basis, as determined by your contract with the bookkeeping firm
  • Your financial information is secure and unavailable to prying eyes within the company
  • The service will be focused on meeting your needs in a way a distracted family member or friend “helping out” may not
  • There will never be an interruption in service, which can happen with an in-house bookkeeper who may take an extended vacation or depart the company on short notice; at a professional service, someone else can take on your account quickly
  • The service can find and email any reports you need at any time
  • You have a number of options for communication: Zoom, email, phone or if the service is local, in-person
  • Everything will be in order at tax time or if you should be audited

Whether you are just getting started or have been in business for years, don’t let bookkeeping be an afterthought. Good record-keeping provides information key to the health and growth of your business.