Whether you are taking care of your own books or hired a bookkeeper, the benefits of having one is worth more than you pay them and here is why:
They are there for you, this is beneficial because it gives you someone to share ideas with. As a business owner, you need people in your corner, so you can be steered in the right path. A bookkeeper can help make sure your transactions are being categorized correctly. They can help you understand the financial reports and explain, why you have a profit, but also why you have no money in the bank account. If you need advice about tax deductions or depreciation, you should make sure that they are a registered tax professional with the IRS.
Another benefit of having a bookkeeper, is that it takes a load off your plate. Letting someone else take care of your books will give you more time to fucus on other important aspects of your business. Why spend the 5+ hours every month trying to balance the bank statements or figure out the accounting software? Let a bookkeeper handle it for you, so you can focus on your business. But! Make sure to meet with them on at least once a month to go over your financial reports.
Getting loans. After COVID hit, banks are tightening the belts, on small business owners and sole proprietors. Banks want to make sure your have a current Profit and Loss statement. They also want to make sure you have a profit. They look for errors, and they don’t want to see categories like Miscellaneous or Uncategorized. Having a bookkeeper, will make sure everything is categorized correctly to match up with your tax return.
It’s a tax write off, that’s right what you pay your bookkeeper, is a taxable deduction. If your bookkeeper is a sole-proprietor or an LLC, you must get a W9 from them, so you can 1099 them at the end of the year. S Corp or C Corp are not required to issue a 1099.
These are just a few reasons why having a bookkeeper is essential to a business. If you are looking for a bookkeeper, or want to know more about our services, don’t hesitate to call or make an appointment. https://go.thryv.com/site/pinabiz