It’s not just what kind of business you do; it’s how you handle it!
There are a lot of hard-working people out here in America. Some have multiple jobs or hustles, others working just one job and many are the entrepreneurs I meet daily and I’m encouraged by them all. However, it’s not just about making an honest living but it’s also how you document that living and how you handle your business that counts as well.
Managing a business even a small business has to be done consistently, efficiently and effectively to ensure continual profitability. Here are a few things that a Bookkeeper offers that ensure or guarantees the record keeping is worth its weight on paper:
- Consistency – A bookkeeper will track revenue and expenses on a monthly basis and even weekly depending on the type of business and transactions. Doing so, allows the records to be consistently recording, documented and more accurate. Additionally, when a business is run like a business, the likelihood of being audited is slim, numbers will be on point and not fictitious, fudged or outrageous! And if the company is audited, good books will ensure that the company survives the audit successfully.
- Accuracy – Bookkeeping ensures that the recording of numbers is handled accurately. Because it’s consistent, the guess work is eliminated which means your books reflect how your company is really doing.
- Relevant Information – Do you know how many people, pay for things out of their business account thinking or saying to his or herself, “this is a tax-deduction?” Sometimes the expense is a deduction and sometimes it isn’t. The key is really is that transaction actually related to the business or not? A bookkeeper will retain all records, then he or she will ensure that all expenses related to the business are captured and at tax time, ensure that no deductions are missed. However, to just spend for the purpose of having a tax deduction doesn’t provide real data for the growth of the business. A good bookkeeper will keep you on track.
- Verifiable Information – All information isn’t verifiable which means that you can have records that mean nothing to a banker, potential investor and even to you, the owner of the business. Again, Bookkeeping is and can be so overlooked as a profession as well as a necessary part of business. As I say and have said, often the thought is that, “I can file receipts myself.” That’s true you can. Filing a receipt isn’t recording a receipt and recording doesn’t mean or reports. Bookkeeping is about providing verifiable, accurate information in a timely fashion for making business decisions! Receipts come from any and everywhere. You could literally walk around and pick them. A good bookkeeper will also inform his or her client about the importance of verifiable information and require bank statements. Which leads us to the 5th thing, a Bookkeeper offers
- Separation of Income & Expenses – You are the owner, but as a company owner and manager, you have to conduct business in a business manner! You are not licensed to just do whatever you desire. Your income and expenses should be and remain separate from the business and a good bookkeeper will make sure you do just that! He or she will separate the information for you and provide you with the necessary information to keep it separated. From structure of your business to categorizing income and expenses for monthly reports, a good bookkeeper will work diligently to secure your assets and provided accuracy of reporting.
It’s my motto, good books=good business decisions! Too many people make business decisions without the knowledge of bookkeeping. They are piecing together information, grabbing solutions from the air and without the knowledge and tools required to make their business profitable. Bookkeeping is the foundation to end the aggravation of working hard, going nowhere.
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