When many business owners begin their companies, especially for the first time, their vision and foresight often falls short of knowing all the elements that are actually required to run a successful business. One of the most common forgotten components in drafting a successful business plan is hiring a talented and knowledgeable bookkeeper. In this blog, we will discuss six reasons why a bookkeeper is essential to a successful business.
1) A bookkeeping service will help a company owner by maintaining focus on key aspects of his business while he handles other duties. It is vitally important to have a trained professional to fix and maintain any financial issues that may arise. This is particularly important if the business owner is not fiscally knowledgeable.
2) A bookkeeper will help the owner refine their focus by handling low priority details and directing timely attention to critical items. Examples of important tasks easily outsourced are the management of accounts receivable, accounts payable, and taxes. Allowing a professional to manage these issues could also curtail problems in the future.
3) When a business owner first begins an enterprise, he or she may have lots of ideas on how to get things started but lacks experience in determining what milestones need to be set and how to achieve them as the business grows. A bookkeeper could be helpful in providing experienced guidance on the financials and can provide advice and direction based on the available capital and general thoughts on the soundness of the company’s overall fiscal track. A good bookkeeper can help educate a business owner on how to interpret financial statements or clarify other financial matters the business owner may not be experienced with.
4) Hiring a bookkeeper is a good idea because that means the business owner can share the workload without hiring a full-time employee. The tasks assigned to the bookkeeping service could include things such as processing payroll, writing checks, managing the bills, bank reconciliations, and keeping abreast of tax forms and payments.
5) A bookkeeping service will provide segregation of duties. Their knowledge will help create efficiency and enable the segregation of duties. This combination of expertise and oversight will help to prevent mistakes and fraud. A bookkeeping service will add a layer of protection to the company’s financial state.
6) A bookkeeping service can empower your business by reducing costs and improving accounting accuracy. A specialty service has the ability to work faster and more accurately than most full-time bookkeepers. The cost savings can help the make the best use of capital and strategically direct the newly freed-up money to invest in growing the business.
For these reasons and many more, investing in a bookkeeping service will save you both time and money.
CFO Shield provides expertise in helping business owners manage their back-office operations. Our firm enables the small business owner access to experienced accounting professionals they would otherwise not be able to hire on a full-time basis. We have the experience needed to create custom solutions to help small business owners better manage their accounting and finance needs and help them formulate strategies to adequately manage their operations. CFO Shield’s goal is to help to ensure stability, security, and prosperity for their clients’ companies.