In business, finances are the key to almost every decision. If you don’t accurately know where your money is coming from or where it’s going, you’re likely to run into problems. Whether you’ve decided to use a reputable bookkeeping firm like J.Awan & Partners, or are planning to do all of your bookkeeping yourself, here are some of the major benefits you can expect from having/being a good bookkeeper.
Accurate Recording and Reporting
A great bookkeeper will be very detailed in their records. This is true as far as the level or detail as well as the timeliness of it. If your bookkeeper is great at catching every single expense but is always a few weeks behind, you may lack the ability to make important business decisions when they come up. As a business executive, you need to be able to have visibility over your accounts and instant access to your company’s financial statements.
Compliant with the Law
While just staying afloat financially is important for a new business, so too is being compliant with local laws and ordinances. No matter where you live, there are likely legal regulations you must follow when it comes to paying taxes and reporting income. Not only that, these financial laws change all of the time and need to be reviewed regularly so as to not compromise the business legally. A great bookkeeper will help you to rest easy by making sure laws are being followed and that mistakes are minimized.
Ability to Predict Taxes
While you may never be able to predict taxes completely since you don’t always know exactly how much revenue you’ll make, having a good bookkeeper can definitely help you to make better predictions. When the government requires financial statements for taxation, you’ll have a detailed statement that should help you to better predict your taxes. With detailed bookkeeping, you can keep an eye out for trends in your expenses and revenue increases and make sure you have the money put away for taxes.
Better Relationships with Financial Institutions
When your finances are accurate and up-to-date, it’s easier to create beneficial relationships with banks and credit unions where you can secure business loans and credit cards. Banks want to see your financial statements, and if they are in disarray, they will likely be less willing to loan to you because you’ll be deemed higher risk. A great bookkeeper will not only keep great records but will have the customer service skills to engage with other financial professionals and develop relationships.