Every business needs good a bookkeeping practice in their business whether you do the bookkeeping yourself or if you hire help with your bookkeeping. We all have probably heard the saying “time is money”. For each of us, time is the most valuable possession that we have. Some might say that time is priceless and nothing can replace our time. This is true when coming to bookkeeping. If you are spending way too much time on your books, it is a sign that you might need to bring in help for the business’s bookkeeping. We will discuss the signs and benefits of having good bookkeeping in this blog.
Time is greater than cash!
You might be thinking to yourself, how is time more valuable than money? We can’t buy or pay with our time. This is true, but take your time and convert time into cash by focusing on other things like growing your business. In a survey taken in 2017, small business owners worked more than 60 hours per week. If this is you, you will not have the time and ability to do your own bookkeeping. The bookkeeping will suffer and will not be up to date. If you are working a lot of hours, it is difficult to squeeze the bookkeeping into your busy schedule. To find out if you are spending more on bookkeeping by doing it yourself than you would hire out the bookkeeping. Here, is a time calculator http://programs.clearerthinking.org/what_is_your_time_really_worth_to_you.html#.XDuYJlxKhPZ once determined what your time is worth, you can now compare it with getting outside help.
You might remember that having your financial records up-to-date. By having your financial data up-to-date, it will help you and your business make the best decisions. If your cost of goods sold is six-month-old and you try to subtract that cost of goods sold from current revenue, it will not tell the true story and you will make a decision off of bad information. A good bookkeeper will have your information up-to-date and will be able to provide you with financial statements by the end of the month. This will help you and your business make the correct decisions.
Accountant vs Bookkeeper
An accountant is usually your CPA who does your business/personal taxes. Bookkeepers are the ones who organize and keep your books accurate and relevant. Some people might think they can do their books and if they get behind they will just pass their expenses/receipts to their accountant at the end of the year before the accountant prepares their taxes. If you are one of these people who wait until the end of the year to pass off their unorganized books to their accountant, you will pay double the amount than if you had a bookkeeper keep your books up-to-date throughout the year. CPA’s charge quite a bit more than a bookkeeper would charge anyway.
What Makes a Good Bookkeeper!
A good bookkeeper is someone you can trust with your financial information. Also, they will ask a lot of questions. Bookkeeping might be too difficult for some people, but your bookkeeper is to know your business and to make an educated decision. The worst thing for a company is to have their bookkeeper guessing about their transactions. With a bookkeeper guessing, you will miss out on an important deduction for your business’s taxes and will make the wrong decision. One of the most important aspects of good bookkeeping is that they are looking out for you and your best interest. A good bookkeeper will have multiple clients, but you wouldn’t know because they will act as your in-house accounting team. It is nice to also have the second pair of eyes on your transactions and good bookkeeper will ask questions for clarification of abnormal transactions.
We hope that our blog will help you determine if you have or are in need of a good bookkeeper. Good bookkeeping is someone who cares and understands your needs. Time is valuable and having a good bookkeeper will help have your financial data accurate and up-to-date, to make an educated decision. Here at Flat Top Bookkeeping, we know what it takes to be a good bookkeeper and understand that each client has their own needs and desires. We serve your bookkeeping needs in Utah and nationwide.