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Every business needs a bookkeeper all year. All business owners learn which months and seasons are the busiest and which are your slowest. Record keeping can easily inform you of business trends.
For instance, working with my husband in the automotive business we know that business picks up during income tax season and begins to slow down when the weather gets cooler, and children go back to school.
People stop thinking about spending money on their vehicles, and they start thinking about holidays and back to school supplies.
However, because I have my own business as a bookkeeper, I see business slow down in the summer after tax season and pick up when companies and individuals start realizing that they need assistance collecting data for annual income tax returns.
The truth is you need a bookkeeper all year.
Why Hire a Bookkeeper All Year?
It is cheaper in the long run
When tasks of bookkeeping get put off regularly, it becomes a bigger chore at the end of the year.
Putting off regular bookkeeping, requires more time to gather all the information needed for the bookkeeper. When additional time is involved, it generally means that you are paying a larger lump sum.
Your business will spend more money on multiple months of work as opposed to smaller time periods of information.
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Monthly and quarterly financial reports help your business financial health
A bookkeeper records income and expenses for your company. Financial reports manage spent funds.
Management of a company can adequately use financial statements to assess assets, liabilities, and cash flow. Monthly and quarterly updates contribute to the financial health and success of a company’s future.
Individuals and organizations forget costs incurred over an extended period
Not all expenses are deductions for yearly income taxes, but many can be; therefore, you don’t want to forget about the costs incurred.
There are lots of payments that your business regularly pays like rent, but you may purchase a computer, printer, or other large items explicitly used for your business that you’ll need to record.
Additional expenses like business licenses are only paid once a year, costs like these are quickly forgotten.
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Conclusion
I continue to tell new business owners to keep track of startup expenses paid out of pocket. If you don’t use accounting software like FreshBooks or QuickBooks, make sure that you find a way to keep track of monthly payments and income whether it is in a notebook, in Excel, Word, or an expense sheet.
The important thing is to keep track of your record keeping. Having the proper paperwork and reports in place allow for business growth and accurate income and expense information.
Thank you for warning us that it can be a bigger chore at the end of the year if we keep putting off bookkeeping tasks regularly, which is why it’s best to hire a bookkeeper to handle them regularly. I recently opened a phone retail store, and I need help with our accounting and finances since I don’t have much knowledge about them. I’ll keep this in mind while I look for bookkeeping services to hire for my store soon.