A report from the United States Small Business Administration states that- 50% of the small businesses fail in their first 5 years because of their financial mismanagement. Yes, the report is showing dreadful figures, but you can stay away from this fate, by availing bookkeeping services for small business. Bookkeeping Services is the answer if you want your business to climb the ladder of success.
From new business owners to seasoned businessmen, bookkeeping is considered as an extra burden of cost & efficiency to the business. Moreover, it is considered a hassle.
The three major reasons as to why bookkeeping services are aimed for:
- Enhancing the Financial Health of Your Business
- Outlining an organized system for accounting
Why Should You Go for Bookkeeping Services for Small Business?
When someone begins to chalk the various benefits of bookkeeping services, one can lose count. Imagine a system wherein you are able to streamline your business operations in a way where you can focus on the core functions.
With bookkeeping services, you are able to get a better picture in terms of where your company is currently standing and where it is headed to. It is particularly advantageous for small businesses.
Easy Tax Calculations
As an individual or entrepreneur, you have to do the filing and paying of your taxes. With the assistance of bookkeeping services, you can have an edge over your tax obligations. As a small business owner, we understand how important regulations are. With bookkeeping services for small business, virtual bookkeepers are able to give you specific and dedicated attention to cater to your specific accounting needs.
The most important requirement is a proper breakdown of your company’s financial statements, i.e., balance sheet, profit & loss account, and cash flow statement.
So, there is accurate and complete knowledge and understanding of your financial position.
What are the primary problems an entrepreneur faces while doing their bookkeeping? It is the issue of missing transactions. Imagine a scenario, where through the year, you are dealing with a business associate, but when the time comes, to do your books, you have little or no record of your dealings with them. The result – stress, errors and vulnerable business relations.
It’s human nature that you can’t remember everything. And in business, a number of payment transactions take place, related to debit and credit. So, facing issues like these, are common but avoidable. How you do that is with the help of bookkeeping services for small businesses. Who understands the importance of regular and scheduled recording of transactions, so that you never miss a detail.
We have all been in positions where a certain transaction that we made has been either missed out or miscalculated by the other party. Be it our bank, customer, vendor or credit card company.
This is where reconciliation comes in the picture. When your virtual bookkeeper keeps a constant track of your dealings with your associates and balances errors, your company gains credibility and avoids miscalculations.
Additional benefits that you get as a small business, is that this third party bookkeeper is not emotionally involved in your business and you are able to gain from their perceptions as it is.
Profit is the reason for which business exists. And you will get accurate information about your profits when you know your books. A correct profit will tell all about your financial health. This can only be achieved with bookkeeping services.
When you know the complete picture of where your business stands, then you are able to judge your profit and loss statement better. And take full advantage of the opportunities that come your way.
Fewer Taxes to Pay
Taking up from the last point, when you are fully aware of where your business stands, you are able to track your expenses, and if you are refraining from doing this, you might end up paying high taxes. If your books are not maintained, then you will have a burned pocket due to 2 things: one, when your books are not updated then you might miss out on an opportunity to avail benefits as and when they come. And second, if you have not complied with regulations which might happen in case you rush through your books towards year-end. The result? Higher taxes.
Bookkeeping services will certainly take care of every expense of your business. If every expense is recorded accurately, you will surely get a rebate in taxes.
Cash Management Benefits
Your cashflow will become better when – your records are maintained and you are able to avail benefits on the basis of these records.
As small businesses, you will get easy finance from financial institutes, in terms of, loans & deposits, if your business records are accurate.
Add to that, when your records are maintained you have a clear picture of your financial standing, which helps you in availing the opportunities that come your way or in making more informed business decisions.
When to Hire Bookkeeping Services?
There are cases when you can hire online bookkeeping services for small businesses.
While Forming Your Business
Formulation of Business Plan
Bookkeeping Services will assist you in formulating your business plan. It does not provide only financial assistance but also helps in making business plans – long and short.
Acquiring appropriate license
There are various licenses with which bookkeeping services can help in acquiring, like, Sales tax permits, business licenses, employment accounts.
A bookkeeper can make sure that you start your business on the right foot.
Compliance and Tax Issues
Complex sales tax issues
Sales tax is a complex thing to solve, as you ship your products to other states or within the same state. In this, you have to be in compliance with the appropriate sales tax laws.
Bookkeeping services will take the onus of submitting sales tax for every sale you made, whether in interstate or intrastate.
Complex payroll issues
There are complex payroll issues related to salaries and wages. Bookkeeping services will certainly guide you in solving any payroll issues of your business.
It is a better choice if you go for bookkeeping services for small business. Bookkeeping services will certainly help you in every business decision you take.
Now here at Accounts Confidant we understand that as a business owner, it’s not a child’s play to tackle all business-related tasks like, Bookkeeping Services for Small Business as it truly helps you in taking better business decisions, So please call us today on +1-866-301-2307 and have a conversation with one of our experts at Accounts Confidant with regards to this topic to get started.