Do I Need a Bookkeeper for My Small Business?
Published on May 28, 2023
It’s not easy being a small business owner with big dreams.
You pour your heart and soul into building your brand, juggle multiple hats, and handle every customer query 24/7. The last thing you would even bother thinking about is “Do I need a bookkeeper for my small business?” I get you. But let’s get the answer to that question out of the way so you have one less thing off your mind – because trust me, you need all the help you can get.
How a Bookkeeper Supports Your Small Business
1. Save Time to Focus on Growing Your Business
As a small business owner, time is a commodity that you just can’t afford to waste. The routine tasks of managing your books (i.e., tracking expenses, recording transactions, reconciling bank accounts, managing payroll) can take up a significant portion of your work schedule, time that could be better spent growing your business.
When you hire a bookkeeper, you’re buying back your time. The hours you would have spent buried in spreadsheets and financial reports can now be devoted to strategic tasks such as client acquisition, product development, or staff training.
Many business owners underestimate the time commitment of maintaining their own books. A small error – be it a misplaced decimal or forgotten transaction – can set you back hours or even days. An experienced bookkeeper minimises these errors. Let them handle the consistent, daily commitment of everything related to your business finances.
For example, think about a business owner who runs a digital marketing agency in Australia. He spends around 10 hours a week on bookkeeping tasks, time that he could have used to pitch to new clients or improve his services. Once he hired a bookkeeper, he was able to redirect his time back to his business, resulting in increased client acquisition and revenue growth. He not only regained lost time, but also ended up with peace of mind.
2. Get Expert Advice
Interpreting financial data can be confusing without the right expertise. When you hire a bookkeeper, you gain access to a professional who is adept at understanding financial data and can provide valuable insights to guide your business decisions.
Bookkeepers can point out potential areas of concern (e.g., cash flow shortages, excessive expenditure), as well as opportunities for business growth (e.g., profitable product line, a successful marketing strategy).
A bookkeeper’s expertise extends beyond just your finances. They also understand the regulatory environment, making sure that your business stays compliant with tax laws and reporting requirements. They can provide advice on how to manage your finances to minimise liabilities and maximise deductions.
3. Pay Less Taxes
Speaking of financial management, a good bookkeeper will tell you how to take full advantage of all applicable tax benefits. They can identify tax credits and incentives that are relevant to your business, such as credits for hiring certain types of employees or incentives for implementing energy-efficient practices.
Consider the case of a small tech startup that was spending a significant amount on research and development (R&D) but failing to claim the relevant tax credits due to a lack of knowledge. After hiring a bookkeeper, they’re now able to take advantage of substantial tax savings since they’re now aware that their government offers R&D benefits.
Having said that, hiring a bookkeeper is an investment that can pay for itself many times over.
4. Get a Big Picture Overview
5. Increase Profits
Who wouldn’t want to have more profits for their business?
A bookkeeper uncovers critical insights such as which products or services are your most profitable, where your biggest costs lie, and which customers are the most valuable. This knowledge allows you to focus your resources on the areas that will give you the best return on investment. They’ll tell you exactly how to get more revenue and thus make them an asset to any small business.
Related article: How Much Should a Small Business Spend on Bookkeeping?
The Bookkeeping Studio: Better Books, Better Profits
In the fast-paced world of business, every decision matters. Outsourcing bookkeeping services for your small business is not just an option; it’s an investment in your success. By saving you time, effort, and tax headaches, bookkeepers become an indispensable partner on your entrepreneurial journey.
Remember: Better books lead to better profits. So what else are you waiting for? Watch your small business thrive like never before when you partner with The Bookkeeping Studio. Drive your profits to new heights today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
