Welcome back! It’s Friday, and that means it is time to talk about finance. Last week we talked about what bookkeeping is. This week we are going to look at the benefits of using a skilled bookkeeper. There are many benefits of using a bookkeeper, and today we are going to look at three considerable advantages: time, accuracy and analysis.
Hiring a bookkeeper allows the business owner to spend more time focusing on their business. Many people do not enjoy or understand finance and accounting. For some maintaining their books becomes an arduous task. Often bookkeepers will work quicker and more efficiently since they have more experience in finance and accounting. A good bookkeeper will keep you informed of your financial operations and provide you reports you can use to build your business. While the bookkeeper is maintaining your financials, you have more time to focus on your core business initiatives. This focus will lead to more growth opportunities.
Accurate records are imperative to maintain your business. Accurate records allow you to gain insight into your business activity on a month to month basis. Each month your bookkeeper will post your entries to the general ledger. Your bookkeeper will select the type of account each transaction should hit. They will complete a reconciliation between your company’s records and the bank’s monthly statement. These steps ensure that you have access to accurate records. Throughout the course of business, there will be times where you need to provide your financial records to a third party. A third party could be a bank, an investor, or your tax accountant. By having a bookkeeper maintain your books throughout the year, you can easily and with confidence provide the information requested by the third party.
Now that the bookkeeper has updated the general ledger for the month, they will be able to provide insight into your business’ performance. One of the first things to do is determine if your company is making a profit. If your company is not making a profit, your bookkeeper can assist in locating areas to reduce cost or increase revenue. The bookkeeper will review the cost looking for errors and erroneous costs. Reducing high or inaccurate expenses is one way to increase profit. Next, they will review revenue accounts for areas where your business is having growth or a slump. You can then take this information and make a marketing strategy to increase your business’ sales. A good bookkeeper will be able to bring this information to your attention. By working closely with your bookkeeper, you will have a pulse on your business. You will be able to see changes happening in your business. This information will prepare you to make any necessary adjustments to your business plan to take on the current environment.
Working with a professional bookkeeper gives the business owner time, accurate records, and analysis. The most limited resource we have is time. Allow your bookkeeper to give you the gift of more time while providing you quality data that is essential for running your business. Hiring a competent bookkeeper is key. Finergy has over ten years of experience in the financial sector, is a certified bookkeeper by American Institute of Professional Bookkeepers and is a Quickbooks Proadvisor. Call or email us today to schedule a free consultation.
Check back next week when we continue our journey into the world of bookkeeping.
*We hope you enjoyed our blog. Please note that the intent of this blog is to provide general information and should not be construed as financial, financial tax, accounting, legal, consulting or any other type of advice regarding any specific facts and circumstances, nor should they be construed as advertisements for financial services.