3 Reasons Bookkeepers Are Entrepreneurs' Best Friends
Updated: May 15, 2020
Entrepreneurs live with the reality of juggling it all. You’re the one staying up all night worrying about customers, leads, and the finances. Often in a small business or start-ups early days, it’s just the founder doing the networking, marketing, selling and all the other day-to-day functions of the business. Maybe you have a spouse, partner or one trusted employee – but in the end, it is often all on your shoulders.
Even though we know that entrepreneurs are actually superhuman, no one – NO ONE – can do everything well. So what happens (and raise your hand if you resemble this remark) is that certain things get put off, or are done just enough to tick off the box on your to-do list. Often, in a start-up’s early days, these things are marketing, setting up processes, and bookkeeping.
Related Post: The Entrepreneur's Secret Weapon: Outsourcing
None of these are great things to push to the side of your desk – but bookkeeping? I think we’d all agree that keeping your eye on your money is important. If you’re not paying attention, things like past due payments, hidden subscriptions and fees, and many other issues can bog your business down.
So we’ve put together a list of the top reasons your bookkeeper is the entrepreneur’s best friend.
1. Check off the biggest box on your to-do list
You’ll know that your bills are being paid regularly, that someone notices in a timely fashion if you have not been paid for work, and that subscription that keeps getting charged to your credit card even though you no longer use the service? Someone will notice that, too.
With a bookkeeper coming in regularly to manage the finances, things won’t get off track and you won’t have to play catch up. And you’ll know that this important task is being done in a timely fashion. And you’ll gain some time back for yourself or to focus on other important tasks.
2. Gain an Outsider’s View of Your Business
Because your bookkeeper is focused on your books – and only your books – they may notice trends or issues you might not have the time to see. We noticed that one client has some customers who pay be credit card for his services, others that pay by check. Those paying by credit card typically paid within a couple of days of getting the invoice, while those using checks took an average of about 45 days. Using this data, he was able to move more of his customers to paying by credit card. Our team was able to balance the fees taken out of credit card transactions vs. cash flow and help him see the benefits of moving more of his customer base to credit card payments.
Your bookkeeper can also notice other trends in our business – and run reports that help you measure the success of your sales and marketing efforts. By working closely with your bookkeeper, you can track your progress against revenue and profit goals, and adjust how you are doing things if necessary.
Related Post: Three Smart Strategies for Growing Your Small Business
3. Minimize the Pain of Tax Time
A friend who can make tax time easier is truly a friend you want to keep around. A professional bookkeeper can organize everything, knows what your accountant needs, and can streamline things considerably. And because they’ve organized everything so well, your accountant will have to do less work to dig through your records – and potential business expenses and deductions will be categorized and captured accurately.
Was this helpful? Want more? Sign up for our newsletter!