Wondering how good bookkeeping can help keep your business afloat and save it money over the long run? Our Chestermere accountant breaks down the five main ways it can do so in our article this week.
Bookkeeping is the basis of all accounting work. Without the former, the latter can’t exist. And if the bookkeeping for your company is poor or non-existent, your business could find itself in a serious predicament that puts your own assets on the line. With more on how good bookkeeping can save your company money and keep it from running aground, here’s our Chestermere accountant with the top five ways it can do so.
Choose IAPC For All Your Financial Needs
With over 15 years of combined industry experience, our team of highly qualified tax accountants can perform a range of services for our clients in Calgary and Chestermere, including tax assessment, bookkeeping services, and auditing to meet all your financial needs.
Our team of Chartered Professional Accountants take pride in providing you with fast and efficient services and a tailored approach to manage all your financial matters.
Need bookkeeping assistance Chestermere? IAPC has everything you need to keep your books clean so they provide the data you need to make the right decisions.
5 Ways Good Bookkeeping Can Save Your Company Money
Usually small business owners love being in control of every aspect of their company. That’s the reason they got into business for themselves in the first place. But as things progress and your business becomes more complex or busy, handling the finances for it can become much more challenging than when things first started. What sometimes begins as a small issue can snowball into a major one once tax season rolls around. That’s where a competent bookkeeper can come in handy. Here’s five ways good bookkeeping can save your company money and not just keep it afloat, but ensure it thrives.
1. Allows you to make smart, strategic decisions
Most small businesses operate with extremely narrow margins. Having a good bookkeeper to keep tabs on your revenues and expenses to determine your profit margin in a timely manner allows you to allocate your resources in a more strategic and savvy way. By doing this, you’ll be able to make the right decisions that position your company for success in the months and years to come.
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2. Lets you focus on the big picture
By hiring a Chestermere accountant to provide bookkeeping assistance for your business, you’ll be able to focus on the more important aspects of your company and spend more time increasing its revenues. Small business owners are known to pile too much onto their plates as they get their businesses off the ground, and adding administrative bookkeeping to the list of things to do can hamper your overall productivity or creativity.
3. Your tax preparation will cost a lot less
If you hire a professional bookkeeper to code and enter in your financials throughout the year you can end up saving a ton of money come tax time. Instead of having to hire an accountant to go through everything for the last tax year at a higher rate than a bookkeeper would charge, you can just pay your accountant to prepare your taxes using the numbers your bookkeeper has crunched. You’ll also be a lot less stressed when your fiscal year end rolls around.
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4. You don’t have to hire them full time
Unless your small business is truly not a small business at all and you have more than 20 employees or make more than $1 million in revenue a year, then you don’t have to hire a full-time professional bookkeeper to keep your finances in order. Most small business owners who use professional bookkeepers usually employ them to handle their month-end closing and that’s it. Or they’ll bring one in a few months ahead of their fiscal year end to reconcile all their accounts ahead of their T2 preparation. Utilizing a bookkeeper in Chestermere this way ensures you aren’t wasting any money unnecessarily.
5. Your overall cash flow will increase
Having a strong bookkeeper provide your business with assistance goes well beyond making sure the right documents or financial statements can be found when needed. They’ll put together processes and systems that help identify which clients or vendors still owe you money and which ones you have yet to pay. By being much more aware of your general cash flow picture, you’ll be able to allocate the funds appropriately to where they’re needed most and cut back on the amount of time you spend digging through the financial mess. Instead, you can go out and earn new business or customers.
While many people see bookkeeping as strictly a numbers thing, the benefits a professional bookkeeper can provide your business extend way beyond a clean profit and loss statement. With their help and strategic guidance, you’ll be set up for financial success now and in the future.
IAPC Has You Covered
If you’d like to know more about our bookkeeping services or assistance in Chestermere, book a free consultation with one of our trusted Chartered Professional Accountants today.
