How A Regular Bookkeeping Review Can Help Your Business Succeed
Bookkeeping is one of the main accounting services. It makes sure that your taxes are done correctly and that all your finances are in order in case you get audited. However, bookkeeping and maintaining your books aren’t just strategies to save on taxes. When done right, we can help prevent you from losing your sanity since you won’t have to manage your business’s finances yourself. We can help you maximise your money too, and therefore help you in creating future business plans. Now that you have a rough idea why you should have us, let’s now look at some cons of not having a regular bookkeeping review.
How Wrong Bookkeeping Affects Your Performance
Poor bookkeeping practices can hurt your business in several ways, whether it’s a profitable one or not. Here are a few problems that are caused by ineffective bookkeeping:
Poor bookkeeping can hurt how you do your business. For example, you may find yourself paying your debts late, which leads to higher interest rates, fewer payment terms, and a decrease in your credit score.
We help prevent these by tracking all your transactions so we can easily manage your cash flow. Effective cash management and recording are essential parts of effective bookkeeping and with a regular bookkeeping review, we can ensure that all your finances are in check so you don’t have to worry about anything.
Lack of Sales and Profits
Poor management can make you lose access to good vendors or suppliers, and eventually, can also make you lose sales. This poor performance may make potential customers and clients change their minds because you may not be able to meet their requirements. This is why your financial numbers are a huge factor in determining your business’s performance.
An increase in churn rate, reduced payments, and low-value customers say a lot about a business’s status.
With our help and regular bookkeeping review, we make sure that all your accounts stay updated so you don’t lose track of your input. You can also choose to hire a hybrid accountant to take care of your bookkeeping, accounting, and advisory services, which are all highly interdependent.
These are guaranteed with improper bookkeeping. Aside from late or unpaid filings of tax returns or wrong deductions, not being able to pay your creditors may result in legal claims against your business or debt collectors to watch over you more closely.
This is why we always talk to your tax accountant. This way, you’ll have full control of sales, payroll taxes, and income, as well as deducting expenses correctly.
How to Hire a Bookkeeper for Your Bookkeeping Review Needs
Bookkeepers are someone who’ll be largely responsible for your business’s financial well-being. Consider the following when reviewing potential candidates:
While you don’t necessarily need the best in the field, you don’t want someone who hasn’t done bookkeeping at all. Plus, it also helps to hire a bookkeeper with experience working in your field so they already have knowledge about the terms used, types of expenses, etc.
Full-charge bookkeepers are in charge of the whole bookkeeping process, from filing your banking needs to dealing with accounts receivable and accounts payable. While they’re more expensive than a regular bookkeeper, they lessen how much oversight you have to provide.
Accounting Software Experts
If your business already uses accounting software for its regular bookkeeping review, it’s a nice idea to look for a bookkeeper who knows how to use that particular software. For example, we at Edge Small Business Consulting are certified Xero experts, which means our experience can make our first few weeks run smoothly if you do use that software.
Keep in mind that bookkeepers handle your business financials. So you’ll want to be able to trust this person because the fate of your business relies on them. If you can, work with someone who was personally recommended by colleagues or speak to their past employers if possible and ask about how they deal with their bookkeeping review.
Fast Thinkers and Problem Solvers
Our job isn’t only about numbers and sunshine. Most of the time, problems that require quick thinking to be solved happen. This is why your ideal bookkeeper shouldn’t just be good at numbers and bookkeeping in general. They must have great problem-solving skills too, and are comfortable in making decisions that can affect your business’s status.
Does your business have unusual working hours? Do you prefer outsourcing rather than working with an in-house bookkeeper? Whichever the case, your bookkeeper must be able to adapt to your work schedule and communication style for a dynamic business relationship.
Why Leave Your Bookkeeping Review to Us?
Bookkeepers are the real heroes of the financial industry. We prevent your finances from being an unmitigated mess, and ultimately, help you run your business properly. If you need help with any bookkeeping service, please don’t hesitate to get in touch with us today.