Most entrepreneurs start a new business because they have high aspirations of running with their idea and experiencing huge success. Despite no one thinking their business will flop, the reality is more than 50% of businesses fail within the first year.
While crunching numbers and balancing the books may not be a top priority for most, failing to plan out strong accounting and bookkeeping practices can be a huge red flag. Here are some of the ways a bookkeeper can play a vital role in ensuring your long-term success.
Want to know the quickest way to go out of business? Try running out of money. A bookkeeper can help you take the guesswork out of cash flow by providing up-to-date financial information that shows you exactly what’s outstanding, and what’s upcoming.
If you don’t have a paper trail of your receipts, invoices, and bills, you run the risk of getting into trouble with the CRA and facing a hefty fine. The CRA could come calling at any time, which his why it’s important that you have all of your accounting records and supporting documents organized and accessible at all times. A bookkeeper takes the panic out of tax season, but can also give you peace of mind all year round by worrying about the details.
Manage Profit Margins
Most businesses have thin profit margins to start with, leaving little room for wasting money on unnecessary expenses. While offering insight into how to generate larger returns, a bookkeeper can also manage your transactions, take care of payroll, ensure bills are paid on time and provide up-to-date financial data that will help you grow your business.
If you’re a small business, you may be struggling with the idea of outsourcing your bookkeeping, but can you really put a price on having less stress? How much is peace of mind worth to you?
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