Business finances can be difficult to navigate on your own. You may have thought about getting some help with your financial records, or perhaps your New Year’s resolution was to turn over some of your financial responsibilities to a professional. Where do you start? What help do you need, and what is available?
Every business needs to keep records and file taxes. Beyond that, accurate records can help you understand the state of your business and provide data to assist in future planning. Note that it is important to have ACCURATE (and up-to-date) records.
Most small business owners find that having a good bookkeeper to ensure all transactions are recorded accurately and on a timely basis is well worth the cost. It does take time to record things and, usually, your time and passion as a business owner are better spent elsewhere.
A good bookkeeper should communicate regularly with you to clarify transactions and understand the basics of your business. All software programs have their nuances and everyone (including bookkeepers!) occasionally makes mistakes. The key is to know how to find these mistakes and get them corrected without making things worse. An effective bookkeeper has this knowledge.
When everything is entered properly, you’ve made your informational reporting (like 1099s and W-2s) much simpler. You’ve also cut down on the cost of having your tax accountant file your taxes, as they don’t have to charge you for cleanup (or worse, they don’t clean it up and file incorrect information...costing you more in the long run).
Speaking of taxes, we highly recommend you hire a professional. Find a CPA that does a number of returns like yours so they’re aware of the tax law nuances that apply to a business of your size and type. Also, make sure you know what to expect from your tax CPA. Everyone does things differently, and you should be comfortable with them and the way they communicate and perform.
Once you have accurate records, you can use your reports to learn more about your business and plan for the future. This is where an accountant, CPA, or CFO comes in. They can help interpret numbers, provide some suggestions for planning and provide a sounding board for your financial plans. Utilizing a good financial accountant can save you from mistakes, help you manage your cash flow, and keep you accountable for the plans you have committed to.
We specialize in partnering with growing companies to provide bookkeeping, accounting, and coaching. If you’re looking to add a partner, reach out to us to schedule a complimentary call to see if we’re a good fit for your business.