The Value of Monthly Bookkeeping
We get many prospects this time of year who believe bookkeeping is only beneficial for filing taxes. Typically a small business owner will come to us and say something along the lines of “I need a bookkeeper so I can file taxes.” BOSS can, and will, certainly assist in catching up your books and simplify your filing process. However, our bookkeeping services offer value far beyond filing taxes.
Here are just a few major reasons why handling your bookkeeping only once a year can be costly and dangerous.
- Mistakes. If you looked through your bank account activity from January of last year, could you tell us what that $57.32 spent at Staples was for? You most likely could not remember what was bought or sold. This confusion can lead to incorrectly classifying income and expenses, which in turn could lead to a higher tax bill.
- Overpaying due to inefficiencies. You may think you are being more efficient by getting all your bookkeeping done at once. However, this is not the case. Referring back to the first point, a large portion of time will have to be spent researching transactions. If handled daily, weekly, or monthly, these transactions will be much easier to identify and track down.
- Business efficiency. Are you a running a successful business? If you don’t have updated reports, then how can you answer that with confidence? A business cannot be sustained if you are running it strictly based off your bank balance. Accurate balance sheets, profit and loss reports, budgets, and financial forecasts will show the true financial health of your business and help you identify which areas must be improved.
The main reason that many business owners don’t find value in year round bookkeeping is simply because they don’t have a bookkeeping process that is able to provide accurate and useful information. The first step to finding this value is to keep your books updated. Without this, you truly are running your business blind.
Once you have a bookkeeping system that is able to provide accurate reports, it can be the biggest tool in growing your business. Instead of just viewing your financial past, you will be able to build financial forecasts that can give you the confidence to make decisions that will keep your business on track.
If you are tired of the yearly rush and want to find the true value of bookkeeping, then it is time to start with the BOSS.
The BOSS team provides professional, responsive support for startups and small to medium businesses that need to outsource services including tax preparation, bookkeeping, sales tax processing, and payroll processing.
For more information, or to schedule your FREE 30 minute consultation, email firstname.lastname@example.org, or call us (Monday – Friday) at (910) 338-1198.
We look forward to hearing from you!