Three Reasons to Hire a Bookkeeper and One Unfortunate Problem
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As a business owner, it can be challenging to keep track of all the financial aspects of your operations while also managing day-to-day tasks. That’s where a bookkeeper comes in. A bookkeeper is a professional who is trained to manage your business’s financial records, including your accounts payable, accounts receivable, payroll, and bank reconciliations. Many companies hire their own bookkeeper, but it is also valuable to have a fractional accounting and bookkeeping service. Here are three reasons why you should consider hiring a bookkeeper or fractional bookkeeping service:
1. Improved accuracy and efficiency
One of the most significant benefits of hiring a bookkeeper or fractional bookkeeping service is that they can help you maintain accurate financial records. Bookkeepers are trained to identify errors and discrepancies in your accounts and ensure that all transactions are recorded correctly. This can help prevent costly mistakes and help you make better-informed business decisions. At Hallows & Company we train our bookkeeping staff to be meticulous in accuracy and efficiency in what we call our coding and posting process.
Additionally, bookkeepers are experienced in handling financial records, and they have the necessary tools and software to streamline the process. This means that they can complete tasks such as reconciling bank statements and generating financial reports in a fraction of the time it would take you to do it yourself. This improved efficiency can save you time and money and help you focus on other important aspects of your business. While there are many tools and softwares to choose from, Hallows & Company highly recommends small and medium businesses to use Quickbooks Online.
2. Compliance with tax laws and regulations.
Bookkeepers can also help ensure that your business complies with tax laws and regulations. They can help you prepare and file your tax returns, as well as provide advice on deductions and credits that you may be eligible for. Additionally, bookkeepers can keep track of important tax deadlines and help you avoid penalties and interest charges. One of the biggest mistakes we see in companies who come to Hallows & Company for tax preparation is they have not tracked their records properly, and may miss out on important tax savings.
Having a bookkeeper on your team can also help you prepare for audits or other compliance reviews. Bookkeepers can provide detailed financial records and documentation that can help demonstrate your compliance with tax laws and regulations. This can be invaluable in the event of an audit or other review.
3. Valuable financial insights and advice
Another significant benefit of hiring a bookkeeper is that they can provide valuable financial insights and advice. Bookkeepers can analyze your financial records and identify trends and areas of improvement. This can help you make informed decisions about your business’s future and identify opportunities for growth. However, there are limitations to a bookkeeper’s knowledge. Most independent bookkeepers are not trained in all aspects of accounting, which is why fractional bookkeeping services like those at Hallows & Company, are much more valuable. Hallows & Company fractional bookkeeping brings a team of not only bookkeepers, but accountants and CPA’s.
Hallows & Company can provide advice on financial management and planning. We can help you develop budgets and financial forecasts, as well as provide guidance on cash flow management and debt reduction strategies, which is something a regular bookkeeper might not be able to do. This can be especially valuable if you are just starting out or if you are looking to expand your business.
While bookkeepers can provide many benefits, there is one thing that they cannot do for you: Make financial decisions on your behalf
While bookkeepers can provide valuable insights and advice, they cannot make financial decisions on your behalf. Ultimately, it is up to you as the business owner to make decisions about how to manage your finances and allocate resources.
That is why it is important to work closely with Hallows & Company to ensure that you understand your financial records and have the information you need to make informed decisions from one of our professionals. By working together, we can develop a financial management strategy that aligns with your business goals and objectives.
At Hallows & Company we highly recommend hiring a bookkeeper because it can help you maintain accurate financial records, comply with tax laws and regulations, and provide valuable financial insights and advice. By working with one of our bookkeepers, you can streamline your financial management processes and make better-informed decisions about the future of your business. However, it is important to remember that bookkeepers cannot make financial decisions on your behalf. As the business owner, it is ultimately up to you to make decisions about how to manage your finances and allocate resources. Talk to a representative at Hallows & Company today to see how our fractional bookkeeping services can help you.
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