For a small and startup business who is trying to save their startup capital as much as they can, hiring a bookkeeper seems to be impractical. The practice of the most of small business owners is to do their bookkeeper DIY style, without realizing that they are actually hurting their business rather than helping it due to erroneous bookkeeping. According to research, 50% of the new small businesses fail within the first 5 years of its operation, and the number reason of this failure is financial mismanagement. Role of bookkeeping is very critical in any type of business. Does a business, even a small business need a bookkeeper? The answer is a big YES, and here the top 5 reasons why
- Bookkeeper keeps financial data accurate
Keeping an accurate financial data is essential in running a business. Having an accurate financial data at hand is important in making right decision. It is also important to note that your business’ financial data should not only accurate but also up-to-date. Having the transactions entered accurately and regularly is sometimes the fine line that separates success from bankruptcy. By hiring a bookkeeper you can guarantee that your business transactions are entered accurately and regularly.
- Hassle free filling of taxes
Filling of taxes is one of the most complicated duties a business owner must undertake. If you find filling your tax as an individual complicated, that have it multiplied 10 times more complicated when filling a tax for business. Meeting your tax obligation without accurate bookkeeping is next to impossible. You need to have your business cash flow report broken down clearly when filing tax for your business, and that skill is what bookkeeping in Balcatta is very good at.
- Tracks the Inflow and Outflow of your finances accurately
With the efficient bookkeeping in Balcatta you can accurately track the inflow and outflow of your finances. An accurate and up-to-date book, will allow in keeping track of the inflow vs. outflow of your finances. This data is very important in creating significant decision for your business.
- Bank reconciliation.
Without efficient bookkeeping, bank account disaster is bound to happen. Without proper bookkeeping, it would be difficult to reconcile your monthly bank statement with what is shown in your business accounting records. Having accurate bookkeeping records, it is easy to see errors that may cause financial problems in the future.
If you think are saving dollars by not hiring a professional bookkeeper, you are wrong. Getting the services of a professional bookkeeper may cost you some dollars, but the ROI in hiring a bookkeeper is definitely in several folds.