Introduction
Welcome and thank you for being here!
Let me cut to the chase; the desk in the picture above is not mine. I could never function efficiently with a messy desk. As previously mentioned in my last blog, I believe that everything has a place. However, some people work great in cluttered spaces. They miraculously know where they put a receipt from six months ago, but they misplaced their other receipts from the entire year. Yikes! I shouldn’t give clutter-lovers too much grief. Based on the picture, we have similarities in using lavender for calming, using the same Ti-30 Scientific Calculator (you bet your bottom dollar I am still using the one my parents bought for 7th grade math class), and putting sticky notes on walls. However, while I prefer diffusing lavender essential oil, they have a lavender plant in a coffee mug. Is this a new trend for 2024 I don’t know about?
Why does your business need a bookkeeper? The main reason is financial organization. Bookkeepers are hired to organize your business transactions and reconcile your accounts. In doing so, they are giving you more time to run your business operations, help you understand your business’s financial health, and hold you accountable and compliant.
Let’s go into more detail:
MORE TIME FOR YOU TO RUN YOUR BUSINESS
Imagine you have a bookkeeper who reconciles your accounts, sends invoices, posts financial statements to your online workspace, pays your bills, and provides your accountant the statements needed to file your taxes. Did you feel the weight lift off your shoulders? That bookkeeper just saved you a great amount of time to focus on other aspects of your business! Maybe you use that time for marketing or cleaning your desk. Or maybe you finally take that vacation you’ve been dreaming about. However you spend it, a bookkeeper gives you time to put back into your business.
UNDERSTAND YOUR FINANCIAL HEALTH
As a bookkeeper, part of my responsibility is to provide financial reports to my clients on a monthly basis. Occasionally, clients may require assistance in understanding the information presented in these reports. In such cases, I am more than happy to meet with them and provide explanations, whether it be clarifying the significance of a Balance Sheet or highlighting the net income reflected in an Income Statement. It is important to emphasize that there is no shame in seeking clarification, and there are no foolish questions when it comes to understanding the financial health of one’s business. The key is to ask questions and gain understanding of your business’s financial well-being.
ACCOUNTABILITY AND COMPLIANCE
Accountability is not always easy, but it is worth it. If warranted, a bookkeeper can assist you to stay within a budget that you created with a financial advisor or accountant. Bookkeepers play a crucial role in meticulously examining your day-to-day transactions and organizing them into a comprehensive Chart of Accounts for your business. They monitor the fluctuation of your income and expenses, which can be beneficial for a business owner striving to meet specific income targets or seeking financing for purchasing machinery. Additionally, bookkeepers are valuable allies in ensuring you stay compliant. For example, an LLC business structure helps establish a boundary between the business financial affairs and the owner’s personal finances. However, if an LLC business owner consistently uses their business account for personal expenses, they are disregarding the structure and failing to comply. A bookkeeper will promptly identify these discrepancies and, if appropriate, step in to put the LLC business owner back on track!
Conclusion
A bookkeeper provides a business owner far more than just transaction organization and reconciled accounts. They offer business owners the invaluable gift of more time to focus on core business operations, teach them about their financial well-being, and ensure they remain accountable and compliant. These are the compelling reasons why your business needs a bookkeeper. Whether this is brand new information to you or you’ve been thinking about this for a while, I am so excited to share my expertise with you!
Check out next month’s topic: Why bookkeepers and accountants are your A-Team
Sincerely,
Kayla