If you're reading this, you're a small business owner. That means you've done something right with your skills or passion—you created a company!
Because you're a business owner doesn't mean you know how to do it all (we're sure you knew that). Being an owner requires you to wear several hats, from a manager or sales associate to a plumber, cleaner, and check writer. You might even be a work-from-home parent to boot!
There are also business finances, which include everything from payroll to cash flow and everything between. Many small business owners choose to go with professional bookkeepers.
They Help You Avoid Costly Money Mistakes
Perhaps the most important reason to outsource bookkeeping to a professional is that most small businesses can't afford to make financial mistakes, especially significant ones. If you're not savvy with numbers, small errors could quickly add up big-time.
Bookkeepers provide a wide range of financial services. Some of these include helping you avoid the following mistakes:
- Spending too much money too early in your business—whether for the company or as a personal purchase
- Neglecting to have clear boundaries and separation between your personal and business accounts
- Forgetting to prepare for tax season and any obligations your business might owe
- Failing to have an emergency fund
If there's a money matter you can think of, it's likely your bookkeeper can answer questions regarding it. Their goal is to make sure you're making smart financial decisions that ultimately serve you and your company's best interest.
They're Future-Focused by Identifying Key Performance Indicators
Not only can a bookkeeper aid you through a variety of adverse financial matters—managing a growing debt, for example—but they can help your business succeed in more advanced ways, too. They can target what's going well and use that information to improve your business strategy.
How do they do this? By identifying your company's KPIs, or key performance indicators.
KPIs are quantifiable (read: measurable) ways to measure your business's performance. They highlight your achievements and how you got them. They focus on numbers such as net profit, revenue, liquidity or cash availability.
This organization-wide process allows bookkeepers to pinpoint ways your company is doing well. This invaluable information can be used to strategize about even more ways to perform well.
Professional Bookkeepers: They Want to See Your Business Do Well
You and a hired bookkeeper have the same goals—to pinpoint weak spots in your finances and improve them and to find strong points and double down on them. You both want your company to do well, financially and otherwise. Together, your business and professional bookkeepers make an unstoppable team built on value, insight, and information.
Who knows! You might find you enjoy working with bookkeepers so much, and your company is doing so well, that owning a bookkeeping franchise is a viable next step for you.
If you ever are curious about franchising, click here. We look forward to talking to you about why this might be one of the best investments you've ever made.