The Promise and Benefits of Bookkeeping

Ahhh, spring is here! The days are longer and everyone is in a good mood, right? Well, maybe. For many small business owners this time of year is very stressful. That’s because they are trying to get their business books in order to complete their tax returns. These are the weeks, almost as much as the first month of the year, is when we hear, “I’m not doing this again. Next year I’m going to …” as they fret over missing receipts, confusing records, and fear about the upcoming tax bill.

Keep the promise to yourself

Even if you have forgotten the resolution to exercise more and eat less, keep the promise to get your books in order this year. The best way to do that is to get a bookkeeper. Notice I did not say, “Hire a bookkeeper.” Owners of growing businesses are well-served by outsourcing their bookkeeping for a variety of reasons, including:

• You get an experienced professional with the skills and knowledge you need
• You don’t incur the cost of an employee
• You have an objective set of eyes providing new insights and information
• You can create a process that captures all the financial activities before they are forgotten
• You can keep your books up to date with little effort
• You have the ability to create financial records and reports

3 biggest benefits to having a bookkeeper

Although more than half of all business owners say the responsibility they least like in their business is bookkeeping, it is one of the most difficult for them to relinquish. There are three H-U-G-E reasons to do so:

1. Better accounting practices

A bookkeeper will set up and maintain your accounting records according to business standards. When a bookkeeper takes about accounts, they aren’t necessarily talking about the checking account, but the income or expense accounts. If you have ever taken your records to the accountant at tax time, you probably understand that your spreadsheets don’t conform to the data he wants.

2. Better business decisions

Keeping your books up to date gives you a financial picture of your business. You might know how much money is in the checking account at any given moment, but do you really have an immediate handle on who owes you and who you owe? In other words, where your business really stands? How can you make decisions if you don’t know what money is available for you to spend? By analyzing financial reports, you can determine what streams of income are most profitable and what kinds of customers are best for you to seek. Informed decisions help you grow.

3. Better business

When you aren’t spending your time entering receipts and expenses, when you aren’t preparing invoices, or making deposits, you could be out getting new customers, calling on existing customers, providing services to customers. In other words, spending your time building your business. In addition, from the bookkeeping reports, you can determine where your business can reduce costs, trim expenses, and which areas are the most profitable for you. When you can make better decisions, you can create a better business.

It’s important to know that it is not necessary to wait for a certain time of the year to begin working with a bookkeeper. Of course, the earlier in the year the less catch up there is to do, but it’s not a major problem to start at any time.

The Payroll Department began in Indiana, obviously, as a company to process payroll for small businesses in the area. We have grown to service companies in a variety of states including adjacent states like Illinois, Ohio, Kentucky, and states farther away, too. But it’s not just payroll we process.

It was at this time of year that our clients started asking us to help with their bookkeeping – because they were in a bad situation and needed help. Our bookkeeping service was originally just to help them catch up and get organized for tax season. Then, just like all small businesses, we adapted to meet the needs of our customers, and it expanded into year-round bookkeeping services.

Just like The Payroll Department is known for its expertise and reliable performance in payroll processing and payroll tax reporting, that same dedication to accuracy and reliability holds true for our bookkeeping services, too.

When you are ready to take the next step for your business, call us at 317-852-2568. We are here to support you with payroll processing and bookkeeping.

-Jessica of The Payroll Department Blog Team