If you are planning to start your own business, it is important to hire a bookkeeper. Even small businesses like small restaurants or cafés will need a good bookkeeper to keep a good set of books that should be consistently updated. Having a bookkeeper can also reduce the struggle during the end of the year since there will be someone responsible in maintaining a detailed set of books.Therefore, listed here are four reasons why small business owners need a bookkeeper.
1. They do the accounting stuff for you.
This is the main reason why you need a bookkeeper. We all know that filling up a ledger with the transactions for the day takes a lot to time to finish and there should be someone skilled enough to do the job for you. It’s all about picking the right person for the right job. Hiring a bookkeeper can greatly help your businesses in terms of the accuracy of financial information. These information can be used to make the right decisions in the future. A bookkeeper can give up to date information when it comes to the financial capacity of the business which will be critical to the company’s success.
2. They can monitor the budget of the business for you.
Since an accurate report of the current spending and revenue is needed even for smaller businesses, a bookkeeper can help you with it. Having these kinds of reports can actually help compare results with projections in the annual budget. Also, a bookkeeper can always cross-check the budget with their expenses to make sure that there will be no over spending that will occur. A bookkeeper can also identify instances of under spending so that the company can develop new ways to help the productivity of the business.
3. They can create up-to-date management reports for you.
Having up to date reports is very essential to any business. It is to know whether the business is operating at a profit or loss. This is also needed to prevent unnecessary problems that may arise financially. Since running a business will be time consuming, a bookkeeper can also help is some admin tasks, most especially those with bills. The bookkeeper can keep track of the expenses for the month, reminding of the bills you need to pay. By not paying a bill can result to major consequences, thus, this should not be taken lightly. Bookkeepers can always remind you of the expenses needed to be paid in order to close books.
4. Their service is much cheaper than an accountant.
Of course, for a small business, it is important to know in which area of the business needs financial assistance. Bookkeepers can be a big help mainly because it is cheaper than the accountant. Professional bookkeepers know what they do in terms of the day to day transactions of the business. Hiring an internal accountant for a small business may not be advisable because it will incur a lot of expenses that may even lead to bankruptcy. It is also advisable for small business owners to look for outsourced bookkeepers to do the job for a few hours a day or a few hours a week to lessen the cost of hiring one. Businesses can save money on salary and it can be used to a more important expense.
Have you decided to hire a bookkeeper? Eclat Accountancy Ltd offers a list of bookkeeping services that suits your needs. Just email us at enquiries@eclataccountancy.co.uk, call us on 02082917713 or visit our website eclataccountancy.co.uk to learn more.