Ever wondered what makes tax season the busiest time of the year?
During tax season, it’s a huge task to arrange necessary paperwork and documents, file returns, pay taxes, keep up with deadlines, all while managing the pressures of work.
The pressure to juggle so many balls may leave you worried about numbers adding up correctly. Although your time may be better spent on business development tasks, the mandatory nature of taxes requires an inescapable priority shift. Making mistakes is not an option, as they may lead to an audit or even bankruptcy. The importance of accurate bookkeeping for small businesses cannot be overemphasized, but it can be overwhelming to handle everything at once during the tax season. So, while hiring a bookkeeper throughout the year is not without a cost, it can save you beyond measure in the long run!
Let’s check out why a business needs to hire a bookkeeper throughout the year.
Precludes errors: A lack of proper experience or knowledge may lead to errors, such as data entry mistakes, missing entries or double entries or confusion with types of expenses. It is less likely that a professional and highly experienced bookkeeper will make such mistakes.
Keeps it organized: A bookkeeper knows the appropriate amount of time to spend analyzing budgets and preparing accurate invoices. They keep things systematic so that the business does not become remiss on accounts payable and accounts receivable. A professional bookkeeper will save you from late fees and ensure timely payments.
Saves time for other tasks: Bookkeeping tasks demand attention to detail and distraction-free focus. When a bookkeeper is responsible for finance and accounting tasks, you can instead focus on core business activities such as networking, marketing, managing, purchasing, selling and the communications necessary to make your business a success.
Allows better understanding and analysis of business standing: A bookkeeper provides insights to the financial standing of your business. This helps you analyze where to invest money, allocate money or cut back. Bookkeepers simplify and explain the systems and processes, so that you can make well informed decisions and create comprehensive business plans.
Improves cash flow: A better understanding of your business finances helps you take appropriate action when applying for a small business loan or line of credit. Thus, a bookkeeper acts as a guide to mitigate your financial struggles with cash flow.
Relieves the stress of receiving an audit: A bookkeeper keeps your books in good order, and thus well equipped to face a CRA audit. With accurate and timely bookkeeping, the stress of CRA is mitigated and you have time to focus on business growth.
Other strengths of hiring a full-time bookkeeper include accuracy and analytical precision. The benefits — decreased stress and better returns — are greater than you think.
P.S. The account professionals at The Vieras can evaluate your back-office needs by conducting an assessment in areas of administrative, financial, HR, and marketing. We will suggest solutions that amplify productivity and growth. To access our offerings, including bookkeeping, accounts payable, accounts receivable, monthly reports and mobile CFO services, contact us now.