16 Ways a Professional Bookkeeper Will Save You Money
A lot of times it’s a challenge to justify outsourcing business bookkeeping. Yes, paying a professional bookkeeper is an added expense, but by doing so you may save way more money than what you would pay your bookkeeper. You would also reduce the stress associated with worrying about being ready for tax season, understanding your financial standing and questioning your business decisions. Below are just some of the ways and examples of how a good bookkeeper saves you money.
1. While looking through your books and reconciling your bank feed, bookkeeper will spot possible fraudulent purchases (from Amazon, for example, ask me how I know) and would be able to identify theft bank withdrawals
2. Would you like to avoid double payments for subscriptions or to vendors? Who wouldn’t! But sometimes you just don’t have enough time to look through every single one of your transactions while performing million other tasks relating to your business.
3. By knowing your type of industry professional bookkeeper would be able to identify when you might be overpaying to vendors or for merchant services and suggest some ways to receive discounts or suggest other companies that do a better and cheaper job.
4. Do you as a business owner have time to pull up important reports on your up to date QuickBooks account to make sure that your business is heading in the right direction? There are several reports that are a must to look at on the regular basis. For example, Accounts Receivable Aging Report can show you who hasn’t been paying on their invoice and for how long. Would you like to collect the money you have fairly earned as soon as possible? Statement of Cash Flow is another often-overlooked statement thatshows what the company is doing with its cash, where that cash is from, and how much of it stays within the business at the end of the reporting period. Just because it reports a profit on the income statement doesn't mean it is generating sufficient cash.
5. Professional bookkeeper sets up your categorization the right way so you don’t miss out on the tax saving opportunities by categorizing your expenses to the wrong categories. On the flip side, you would also avoid problems with audit (for example, if you categorize loan as an expense it is not going to sit well with the government).
6. Payroll taxes and sales tax can cost you a fortune if not filed correctly or on time and the penalties…who can afford those? Bookkeeper can help you with this tedious task as well.
7. Most business owners always try to increase profits by considering ways to increase sales instead of first looking at their expenses. It could be very beneficial to cut some of the unnecessary subscriptions or let go of the office space you don’t use but pay rent for.
8. By managing your Accounts Payable and Receivable bookkeeper will send out customer invoices on time so you could get paid on time and use that cash flow. And the bills will be paid on time so you wouldn’t have to waist money on fees and penalties.
9. Bookkeeper can point out multiple ways to track everything relating to your business without wasting too much of your time. For example, tracking the mileage of the personal vehicle used for business purposes can save you money. (MileIQ is a fast tool) Tracking your receipts by just snapping a picture of it and storing it in the cloud will save you headache if you are ever audited. (You can use HubDoc or Receipt Bank)
10. Budgeting and forecasting will help you comparewhat your actual results are versus the budget, and use that information to improve your company’s performance. For example, if a particular service you perform is providing good margins, consider putting more market money behind that service. Or get rid of poorly performing products and concentrate on the ones that bring the most income.
11.Always a difficult one to mention but still - find out if you have a theft problem before it’s too late. Sometimes out of place financial results are hard to detect, but possible with an extra set of eyes on your books.
12. Never pay another NSF Fee. Your bookkeeper would help you keep track of your transactions and balances.
13. Utilizing a professional bookkeeper, you will know how much profit you have made and what your business is worth each month.
14. If you keep track of costs by job or project (Contractors, Landlords, attorneys, etc) know which products/jobs are profitable and which ones aren’t, which ones are too far from the estimate and fix it before it’s too late.
15. You can save your business money by not wasting your valuable time on doing your books but instead you could work on bigger opportunities to bring in more revenue.
16. A professional bookkeeper can keep track of the margins and give you advice on how to generate even larger returns.
If your bookkeeping is constantly behind, it becomes difficult to make strategic decisions or analyze the health of your business when you need to most.
By looking after your monthly transactions, handling payroll, ensuring bills get paid on time and your business meets its official obligations, you’re free to concentrate on growing your business and avoid the stress of unknown.
Please let me know if you would like to save some money!