Eight Reasons Why Your Business Needs Good Bookkeeping

Bookkeeping has been around for over 4,500 years – for good reasons! Why should you hire a bookkeeper and what should you expect from good bookkeeping?

1. You’ll know how much cash you have to spend because your bank balances will be reconciled monthly.

2. You can anticipate how much your customers owe your business because your bookkeeper will manage accounts receivable.

3. Your bookkeeper will manage accounts payable; this will tell you how much to set aside to pay the bills.

4. A balance sheet that will tell you what your business has (assets), what it owes (liabilities/debt) and the difference between the two (owners’ equity). The balance sheet, like other financial statements, is like a window into your business that helps you understand your finances better so you can make better and more timely business decisions.

5. You’ll receive a timely P&L (AKA profit and loss statement, income statement) which measures profitability, meaning how did your business perform? If you look closely at your P&L every month, you’ll find trends that will help you better understand your business finances. P&Ls are also often used as a starting place to build a budget.

6. Good bookkeeping results in accurate and timely info for your tax preparer – including the P&L and the balance sheet - so she can prepare your businesses’ tax return.

7. Peace of mind. Good bookkeeping can help prevent theft, fraud and other unkind stuff that can happen to a business. You’ll understand your business better and you’ll have an ally in your bookkeeper – someone to help with the complexities of the money side of business.

8. The overall knowledge you’ll get from good bookkeeping can help you manage and grow your business.