There are so many facets to running a business. One of the least popular responsibilities tends to be managing and maintaining financial records. It is a very time consuming and detail oriented task, which unfortunately means it often gets pushed aside and ignored, leading to costly mistakes. While you might not have thought of using a small business bookkeeping service for your business before, when you look at the benefits that come from working with an expert in the field, you’ll see how much your business can gain – both in time and money!
A qualified small business bookkeeping service can enter, maintain, and update your financial records for the various business transactions that take place throughout your fiscal year. Specifically, a bookkeeper can provide you with details on your total revenue, profit, losses, expenses, assist with tax filing and rebates, as well as other various financial details incurred by your business.
A local Toronto bookkeeping service can ensure that you have up-to-date and accurate financial information to help you make the best decisions for the growth and success of your company. Let’s look at some of the specific benefits that good record keeping provides to small businesses.
Good Standing Accounts Payable and Accounts Receivable
A good bookkeeper will make sure that your invoices are sent out and paid in a timely and accurate manner. Do you know how many busy business owners are behind on sending out invoices (or even worse, forget to send them out at all)? Don’t leave that money on the table! Find a qualified bookkeeper to help you keep your accounts up to date and in a positive cash flow position.
Depending on the size of your business, a bookkeeper can also help you manage payroll, reconcile month-end bank account and credit card statements as well as filing HST remittances. By being up-to-date for your transactions, you will avoid late payments and penalties.
Ability to Review Financial Performance
Understanding the past financial performance of your business can help you make better future decisions. When you work with a bookkeeping service, you will be able to ask for reports that can provide insight on when your sales might fluctuate, what products and services you sell the most, and what products aren’t selling well.
With detailed financial records, you can understand more details about your business expenses and if you need to scale things back to hit your profit targets. Without the right type of financial data, you may think your business is performing well when that’s not exactly the case.
Opportunity to Make Future Financial Goals
If you want to your business to grow, you need a plan for how you’ll reach your targets. Business owners should create a financial plan or budget for their business every year, as well as a five and 10-year future plan. With the help of a professional bookkeeper you will have a realistic view of your revenues and expenses, which will allow you to set achievable goals for your business.
When you have proper financial records, making plans to save for new equipment or inventory becomes a realistic option, instead of just hoping that you will have the funds to move your business forward.
As you can see, working with a bookkeeper offers many advantages. When you have accurate financial records, you have the ability to make the right decisions that will lead to growth and success. Bookkeeping for GTA can take care of all your bookkeeping needs so that you can feel confident in your financial records. From bank reconciliation, to invoicing, to bookkeeping classes, our professional bookkeepers can work with you and support your business goals – contact us today!