There is no doubt that running a small business is a serious undertaking that requires you to balance a multitude of different responsibilities. Not everyone is capable of doing it, but that does not mean you need to make it harder on yourself than is necessary. A lot of small business owners take it upon themselves to be in charge of managing their books, but hiring a professional to do it makes you better able to concentrate on other aspects of your business, precisely determine the health of your finances, and avoid making costly, potentially cataclysmic mistakes.
Focus on Your Strengths
Small business owners are routinely forced to wear many different hats, and that isn’t always a good thing. Many owners believe that hiring someone to maintain their books will cost them more than doing it themselves. While this is true in an explicit sense, there is a significant amount of opportunity cost associated with doing it all by yourself.
In all likeliness, your greatest strengths lie outside of keeping books. If you were to delegate your bookkeeping to someone else, much more free time opens up for you to accomplish tasks like networking, chasing down sales leads, and accomplishing the many other things necessary to make your business profitable. Often, owners find that the more money they can make with their additional time outweighs the cost of hiring a professional bookkeeper.
Reap the Benefits of Well-Kept Books
Accurate books allow you to assess the health of your business. It’s crucial to see how much money your business brings in and where and how money is being spent. This vital information lets you compare your business to industry standards in order to see how well your business model is working. If you don’t have correctly managed books, how do you expect to assess what you’re doing right and what areas need improvements?
Accurately tracking your expenses will also help to minimize your tax exposure. The IRS wants to help small businesses by allowing them to use their expenses as tax write-offs, but that can only happen if you systematically track them.
Avoid Getting Yourself and Your Business in Trouble
Let’s face it. You can get yourself and your business into some seriously hot water if you don’t know what you’re doing. Do you know how to accurately classify your expenses? Similar expenses such as taking a client out to lunch, buying pizza for your employees, and taking your employees out for a meal fall under different categories. Can you say with 100 percent certainty that you know how to differentiate between them?
It’s hard to make a small business successful, and half of small businesses don’t make it through their fifth year. Don’t make it harder on yourself by getting in trouble with the IRS. Bad books can lead to an IRS audit which also opens up other years to examination. It’s a bad path that down which you don’t want to start.
Why Gilmoremom Accounting Is Perfect for You
I have 30+ years of professional experience including running my own business. Throughout those years, I have worked with a variety of different small businesses, and I can use my knowledge, experience, and expertise to help yours reach its full potential.
Don’t wait until it’s too late. It’s time to have a professional handle your bookkeeping.