01 Jun Startup Essentials: Do You Need A Bookkeeper?
This is a cause for contention among startuppers: do you need a bookkeeper? On the one hand, it is an added expense. A startup has to scrimp on its capital because starting a business is a big risk. There is no way of knowing if it will be a hit or not. So there is one school of thought that says no to hiring a bookkeeper or other personnel that will not have a direct participation in the running of the business. But being frugal doesn’t always mean being practical.
Hiring a bookkeeper is definitely the practical way to go. Here are five reasons why you should hire one:
You can focus on running the business
Money matters in business. In fact, the main goal of a business is to make money. You need a bookkeeper who’s an expert in keeping tabs of money. If you did not major in accountancy or finance-related courses in college, then chances are you are not an expert in keeping finances in order. This is why it is practical to just hire a bookkeeper. This way, there will be minimal to zero mistakes as far as financial reporting is concerned. You, on the other hand, can concentrate your energy and intelligence in running the business and managing people under you.
You can keep tabs on your finances better
Since financial reports are done by an expert, you can take a better look at it and understand it better. You need a bookkeeper who can make a monthly financial report that’s important to the business. This will give you a better perspective on how the business is doing and if there are certain days where the business peaks or when it is slow. When you get this kind of report, it will be easier for you to make marketing strategies to make the business better.
Someone will ensure timely payment of bills
Failure to pay bills on time will mean having to pay unnecessary penalties. Penalties may not be financially crippling but it is totally unnecessary. And if you miss one, you may miss more. Having a bookkeeper means getting someone who will remind you of your financial responsibilities.
Correct and prompt tax filing
There are a number of ways to lower the amount of tax you will pay the Internal Revenue Service. And no, it is not an illegal maneuvering of finances, it is just a matter of enjoying privileges bestowed by the government. And these are things not all lay people know. But all bookkeepers are guaranteed to be knowledgeable about this. And of course, you need a bookkeeper to let you pay your taxes on time so you won’t have to be billed with the unnecessary penalty.
Maintain cash flow
Because you are so busy running the company, you might forget that there is money that should be going into the company. So not only are bookkeepers reminding you of your financial responsibilities, they also prompt you of possible cash influx.
You see, while you are actually paying a bookkeeper, in the long run, it would actually seem like you will be saving a lot of money because finances are handled properly—with less to zero mistake—by an expert. So do you need a bookkeeper? ABSOLUTELY!