Do you often find yourself overwhelmed with the routine, yet critical tasks of your business? If so, you are not alone. Most small business owners feel this way. To reduce the stress many choose to focus on tasks that they believe increase the bottom line, while putting off tasks like bookkeeping until later. The fact is neglecting bookkeeping tasks can significantly decrease your bottom line. Consider these four areas where an efficient bookkeeper can increase your bottom line.
Reducing Interest Expense – A bookkeeper will track and monitor your monthly income and expenses. By knowing your business’s cash flow position you will be less likely to rely on credit debt to finance your business’s growth.
Taking Advantage of Discounts – Have you ever received your vendor bill and noticed that the vendor offered a discount if you paid within 10 days? You probably thought, “I’ll do that.” Then, you forgot. Your bookkeeper can help you monitor your cash flow to take advantage of discounts which lowers your cost of goods sold.
Making Timely Payments – Not paying your bills on time can cost you big! Furthermore, government remittances such as employment tax and sales tax carry hefty fees for late or non-payment.
Reducing Errors – Mistakes could mean huge losses for your business. Whether it’s forgetting to enter an invoice for a customer job or entering transactions incorrectly, you can’t afford to lose money due to bookkeeping errors.
Bookkeeping has to be done timely and correctly. Data that is entered accurately, along with correct preparation and analysis of financial statements, and on-time filing of government remittances means you can avoid any penalties and interests. The result: you make smart business decisions and increase your bottom line.
AimeeIrwin32
11 years agoI guess that to get the loan from banks you must have a good reason. Nevertheless, one time I have received a short term loan, because I wanted to buy a house.
Muslim
11 years agoI give my bookkeeper all of my reeicpts of things I’ve spent money on FOR my business as well as any client orders I get that month. Then they calculate my sales tax as well as give me an overall look at where my money is going and how much I am making in general.
Maricelma
11 years agoPersonally, if I want my accounting and boeknoepikg task to have a great output, I hire someone who’s an expert on these field. Hiring is good for small businesses and better for large companies. It is very difficult to find a reliable help on accounting and even if you do find someone great, they can be very expensive. I have to agree that outsourcing this kind of service could be a good choice if you’re willing to take the risk in order for you to cut cost. Hiring an expert bookkeeper for less than $10 an hour can be possible if you hire him on a lower income country like the Philippines. Reading this will give you additional tips on how to find a skilled bookkeeper, offshore. You might find it interesting.
Carolynn
11 years agoI can only repeat the other cemnomts above mine. Great content and i think im not alone when i ask: do you plan to add some more images on this topic by any chance? It would make this page more enjoyable. Just a thought, i hope you dont mind Thanks for the great post,
Sefer
11 years ago/ I know a businessman who had a $300/hr. bokkeeoper.I wrote an article about him if you ask most small business owners they admit to 3 categories of activity -1. CEO work deep thinking, planning, etc.2. Managing other workers, giving orders3. Chief employee workWhen asked most say they put about 10% of their time in category 1, 4% in category 2, 50% in category 3.I valued that work at $300, $50 and $15 an hour.Now, if you could get the CEO to spend 50% of his time with #1, 40% with #2, and 10% with #3, he’d have to hire someone to do the employee work, and according to my spreadsheet, would be about 3 times richer.Now, you may have guessed that the jerk who had a $300 per hour bokkeeoper was me. I wasn’t very accurate, and it took me a long time, but I was very proud of it just the same. I finally wised up! Then I regained 7 hours of CEO time at a net cost of $175 for a perfect job every month.