How Stellar Bookkeeping Can Reshape Your Business

Having a mediocre bookkeeper versus a stellar bookkeeping professional can make a difference for your business in so many ways. So, how do you define the two? When comparing how well a bookkeeper may be for your business, you need to consider a few things. What is their focus? Are they just here to earn a paycheck and only focus on data entry or are they more in tune with business trends for cashflow, compliance, and profitability?

Understanding the difference between a bookkeeper who focuses on the basics and one who is ready to help your business grow can reshape your business for years to come.

Financial Clarity

When you are in control of your business finances, it can make a huge difference in your profits and shows where you can improve your spending. With the right platform your bookkeeper can track products and services sold and determine what your most profitable product or service may be. They also keep in mind fluctuations within the year, so if you’re a coffee shop, maybe your hot drinks aren’t as profitable during the summer months. You, as a business owner, will want to ensure there is no purchasing of extra inventory for hot drinks during those months which will reduce cost, waste, and in turn create more profits for your business. Likewise, If you are in the business of selling a service such as a cleaning company, you must gather an idea of what services are most popular and cost efficient for the time spent providing those services. With proper tracking, your bookkeeper can help identify trends in your services, which will allow you to focus on advertising and providing profitable services to potential and existing clients.

Informed Decision-Making

Your bookkeeper can help you determine a realistic budget by using historical data and market trends to help you make informed investment and savings decisions. If you’re a bakery who desires to purchase a large piece of equipment, maybe a new industrial mixer or stove, you need to hire additional staff because your business has grown so much in the last year, or you have your eyes set on purchasing a new location to expand your bakery. All of these things are possible, but you must prioritize your budget to make the proper strategic decisions for your business. Your bookkeeper at the end of the day should know your business and the information to provide you with to make these decisions, although, it is very helpful and insightful to connect with your CPA before making major purchases or changes to your business.

Cash Flow Improvements

A bookkeeping professional can easily track the inflows and outflows of your business, but a stellar bookkeeper will understand the best way to manage fluctuations within your finances and the possibilities of unexpected surprises; such as, non-payments of receivables, overpayment of payables, and potential losses. Keeping a cash reserve can create a buffer for unexpected financial situations, and discussing how much of a buffer you may need with your bookkeeper can be beneficial.

Compliance Efficiency

With up-to-date records that are organized, you can expect better tax compliance throughout the year creating less chaos, faster and accurate filing, and less stress for you and your Tax Professional. With proper guidelines in place, you can count on your bookkeeper to maintain efficiencies and focus on reducing the risk of penalties.

Streamlining Operations & Profitability

As a bookkeeper it is important to understand and utilize technology to better your clients business. A stellar bookkeeping professional will do their best to work with upcoming and new advances in technology to create a better outcome for their business and yours. Striving to create less space for errors by using built-in tools can save a bookkeeper time and save your pocket from potential errors. Profitability for you is profitability for your bookkeeper as well. Data created by the streamlining of your operations can give your bookkeeper useful insight to help your business grow and not just manage or keep your business afloat. It can also aid in the possibilities for investing and lending opportunities that you may need for your growing business.

Before you decide on just hiring someone to help keep your books in order, you should ask yourself, am I looking to hire based on experience alone, or am I looking to find someone who has the best intention for my business? What is important to me as a business owner, and how can I best relay that to my bookkeeping professional? Where do I see my business in the next few years? Hiring can be intimidating, especially when your financial information is involved, but handing over your bookkeeping to a stellar bookkeeping professional can save you time, profit, and reshape your business for the long-haul. Don't settle for anything less.