So many small business people begin a business unaware of the financial complexities of running a business. Year after year, they do their own financial paperwork, usually late at night after a long, hard day at the office. While they may believe the time spent doing bookkeeping DYI style is saving them money, in many cases it’s costing them money; plenty of it.
Hiring a bookkeeper to maintain your books will save you money on taxes. You’ll get a clearer picture of where your profits are coming from and what your expenses are. A qualified bookkeeper will help you keep your sanity or getting into trouble because you comingled funds or missed a payment.
Here is how a bookkeeper can help you.
- Having a bookkeeper maintain your financial books creates a wall between your personal and business accounts. It shows you are treating your business as a separate and significant entity. Having a separate checkbook will discourage you from commingling personal and business funds.
- Tax advantages. Having a professional in bookkeeping procedures prevents payments from being missed, and provides better records that can increase your tax return.
- Tax Audits.If your accounts are professionally managed, the pain of an IRS audit won’t be as severe. The IRS will often disallow expenses when personal and business expenses are commingled in a single checkbook. A bookkeeper can keep everything separated for you and better organized so the IRS auditing process can proceed as smoothly as possible.
- Less stress.Disorganized books cause stress and anxiety for small business people. Having accurate financial information available when needed reduces the anxiety and frees up the business person to think about future profits rather than current and past transactions.
- Improved decision making. Having accurate information provided by a bookkeeper leads to better decision making. You can’t be a successful business owner without accurate records?