Juggling the financial details of running a small business is a major challenge, but attempting to handle bookkeeping solo comes with a handful of risks.
Rather than risking disorganization, record-keeping errors, and other pitfalls that come with DIY bookkeeping, many small businesses have dedicated in-house or outsourced bookkeepers to accurately handle their finances. From keeping accurate records and informing business decisions to foolproofing your tax compliance, bookkeepers do much more than just record-keeping.
At NorthStar, our team of outsourced, remote bookkeepers has been relieving small business owners of common bookkeeping stressors for the past decade. We take daily bookkeeping tasks, reporting, and tax compliance off of the plates of busy business owners – allowing them to breathe easy and focus on more revenue-generating duties.
So, why does a small business need a bookkeeper? Read on to find out, and if your business’s books need some fine-tuning, don’t hesitate to contact NorthStar Bookkeeping for support.
Why Small Businesses Need Bookkeepers
Running a small business involves keeping track of several moving parts, from sales and expenses to inventory, payroll, taxes, and more.
With so much to stay on top of, it can be tempting for small- to medium-sized business owners to handle their bookkeeping themselves. This is why owners opt for in-house or outsourced bookkeepers – to gain access to valuable expertise that can save them time, money, and stress in the long run.
Here are some of the top reasons why a small business would need a bookkeeper:
To Keep Accurate Records
Bookkeepers help small businesses maintain well-organized financial records based on generally accepted accounting principles (GAAP). This includes accurate day-to-day record-keeping, and using that data to produce reports such as income statements, balance sheets, accounts receivable aging reports.
With these reports, small businesses can review their financial help and spot any inconsistencies that call for attention. By ensuring that day-to-day entries are accurate, business owners can make more informed decisions guided by clean data.
To Make Informed Decisions
Along with being professional record-keepers, bookkeepers are also advisors who can make sense of your financial data. The financial reports that bookkeepers produce, such as quarterly reports and profit and loss (P&L) statements, enable business owners to make data-driven decisions based on their current financial health.
By analyzing past financial trends and performance, bookkeepers can provide key insights that inform crucial decisions such as setting prices or budgets, making a major purchase, hiring staff, and expanding operations. Without these reports, small businesses could lack the context needed to make strategic moves that drive growth and success.
To File Taxes Appropriately
Between all of the forms, deductions, and deadlines, navigating small business taxes can quickly become complicated – and owners need an expert by their side to ensure no errors are made.
Bookkeepers like the team at NorthStar are deeply familiar with small business tax requirements, and lend a hand by preparing tax files promptly and accurately. As a small business owner, this can help you avoid costly penalties that result from mistakes or missed deadlines. A trusted bookkeeper can also advise you on how to reduce tax liabilities through deductions and credits.
This expertise is invaluable come year-end and tax season, ensuring that your taxes are organized, filed properly, and optimized to prevent those costly errors.
To Budget Effectively
With a bookkeeper to track financial transactions and produce insightful reports, small business owners can confidently create accurate budgets.
Bookkeepers provide oversight to help businesses stick to budgets and adjust them as needed. With tight budgeting control, owners can avoid overspending, and better plan for future expenses such as inventory purchases or new hires. In short, a bookkeeper – be them in-house or outsourced – enables your business to budget wisely and in a more informed manner.
Does Your Small Business Need a Bookkeeper?
Small businesses need bookkeepers to maintain accurate records, handle tax compliance, and inform strategic business moves based on financial data. Without this guidance, you could find yourself with inaccurate records and confusion come tax season. Or worse, costly penalties if there are mistakes in your tax reporting, or if you miss deadlines.
Prevent these outcomes by opting for an outsourced bookkeeper that acts as an extension of your business, such as NorthStar Bookkeeping. It’s far more cost-effective than hiring an in-house bookkeeper, yet capable of the same wealth of services, from bookkeeping and reporting to advisory and support. While bookkeeping is our passion and service, NorthStar’s specialty is reducing the stress, uncertainty, and fatigue of tedious bookkeeping tasks, giving you the time and energy to shift focus to more pressing business matters.
Partner with NorthStar Bookkeeping to use your QuickBooks platform to its fullest potential.