Guessing is fun – if you are watching a game show. But it’s not the right strategy for running a small business. Bookkeeping can provide you with a monthly snapshot of your income sources and expenditures. It paints a clear picture of what adjustments you may need to make – sooner rather than later. Is one vendor charging too much? Has another customer paid that last invoice? Reviewing entries regularly enables you to see if there is a recurring charge to something – like a subscription or service – you no longer need.
Having a reliable bookkeeping and accounting service will also help you stay ahead of the tax-day curve. Most of the frantic, sleepless nights that taxpayers experience can be eliminated if they simply have all their receipts and records at their fingertips. Bookkeeping software, such as QuickBooks, allows you to capture receipts and keep them organized. It also allows employees to easily enter their time sheets.
Bookkeeping and accounting professionals rarely make mistakes, such as data entry errors or even double entries. They will also ensure that you pay company bills on time to avoid costly late charges.
If bookkeeping and accounting intimidates you, or if you simply don’t have the time, hire someone. And yes, your business will incur a cost but when you compare it to the time you can reallocate to making more sales and networking, it will be minimal. Once you eliminate the distractions, you can maximize your time to reinvest in yourself, your family and your business.