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Why Businesses Need The Help Of Bookkeeping Services
Do you really need bookkeeping services?
Most people view book keeping like a grudge purchase. An unnecessary evil that just eats at our profits.
But there are more than a few good reasons to hire a bookkeeper or outsource your bookkeeping. Even when you are a small entrepreneur struggling to set up operations, the bookkeeper is absolutely the one resource you should never scrimp on.
The bookkeeper could literally keep you out of jail! When I put it as simply as that, then the bookkeeper takes on a whole new lustre.
Paperwork is necessary to keep track of operations. For example, how will you know how much tax to pay the taxman? Nobody likes paperwork, more especially entrepreneurs, but bookkeepers do. They are the ones who keep you out of jail.
A second and much under anticipated aspect is: who deals with the lawyers, bankers and procurement departments? These people are professionals who expect a certain level of informed communication. The accountant/bookkeeping services can provide that.
Let’s go through how your bookkeeper can and should assist you:
· He should be able to help you by working with your lawyer on matters such as ownership structure, and type of entity you should set up.
· He should design and set up your accounting system so that you are not scrambling at financial year end
· Ensure that your types of tax are correctly classified and right amounts paid at financial year end
· Ensure that all employee related payroll tax forms are posted correctly online
· Assist you on how to separate your personal from business expenses
· Prepare your interim and year end financials and submit to auditors if required
The not so obvious things that the bookkeeper can assist you with is things like informing you about what items are deductible and applicable to you. This can make a big difference to the bottom line of a small business.
If you are not a professional accountant, then it is anticipated that you will make errors in the book keeping if you are trying to manage it yourself. This could affect your decision making regarding the business. To get high quality, accurate accounts, one should outsource the bookkeeping. This will also negate any related party transactions and bias.
As a business person and/or entrepreneur, you should spend your time doing what you are good at, because trying to do accounts that you are not proficient at, is just a waste of your time and will ultimately reflect in your business performance.