Bookkeeping

If you've started a small business and are unsure of how to run and keep your business organized, then it may be wise to hire a bookkeeper to save you time, money, and a headache down the road.

1. Organizing company receipts, checks and vendor invoices 
2. Creating invoices and sending them to customers
3. Receiving payments against open invoices
4. Tracking Accounts Payable and Receivable 
5. Reconciling Bank Accounts 
6. Maintaining customer files 
7. Generating income statements and balance sheets
8. Closing the books monthly, quarterly and yearly
9. Maintaining an accurate chart of accounts

1. It ensures that you don’t miss out on deductions

2. It can help you secure a business loan

3. It helps you catch banking errors quickly

4. It gives you a clear picture of where your money is going

5. It increases the value of your business

6. It separates your business and personal expenses

7. It keeps supporting documents organized and available for an audit

8. It organizes the financial data for effective management of your business

9. It prepares your business for tax time to comply with the IRS

10. It saves you money by avoiding paying penalties, interest and other fees

1. When there is lack of time: 

Effective time management is key for entrepreneurs. All small business owners spend about 20 to 30 hours per month doing bookkeeping. Think of the time spent bookkeeping as the time you could spend generating more sales and profit for your business. Did you know that if you do your own bookkeeping you don't get to deduct your valuable time spent in it?

2. When there is lack of knowledge:

If bookkeeping is done incorrectly, the cost of late fees, interest and penalties can really add up, plus you would have to hire a bookkeeper to fix the errors which can be costly too.

3. When there is lack of interest:

Bookkeeping is not for everyone. You have to love working with numbers, so if crunching numbers puts you to sleep, it may be hard to find the motivation to keep up with it.

• Is my business registered, licensed, bonded and insured? 
• Is my business a sole proprietorship, partnership, limited liability or corporation?
• What are the tax implications of my business structure?
• Do I need an (EIN) Employer Identification Number?
• Do I have an accounting system in place to maintain adequate financial records?
• Should I keep a list of all my customers, vendors, sub-contractors and employees?
• Do I keep my personal finance separated from the business financial activities?
• What are my business assets (business properties or what the business owns)?
• How much does the business owe to suppliers, tax authorities, banks, and employees?
• Do I have sub-contractors and/or employees?
• Does the business have a payroll system in place?
• How do I manage my business-customer relationship?
• How much is my weekly, monthly, quarterly, and yearly revenue?
• How much does each customer owe the business?
• Do I have a collection system for Accounts Receivables (AR)?
• How much capital is invested by the owners in the business?
• What is the cost and the operating expenses of my business?
• Am I in control of my weekly, monthly, quarterly and yearly expenses?
• Is my business profitable at the end of the period?
• Is my business growing, stuck in time, or dying?

Bookkeeping is the backbone of an accounting system and forms the basis of analysis in management accounting. Keeping your books in order is a key piece to running a healthy, successful business.