Not tracking your finances is the fastest way to opening the proverbial Pandora’s Box of financial problems – from incorrect tax filings to reduced cash flow. These problems are what put many small businesses at risk. Good bookkeeping routines, on the other hand, can help your business grow beyond just surviving.
Here are two bookkeeping routines every entrepreneur should implement that will guide your business from one success to the next.
1. Outsource Bookkeeping to Professionals
Small business owners find themselves pulled in different directions every day. So, it makes sense to outsource the work that you do not have time for. Like many other entrepreneurs, your goal is to pursue your passion, not become an accountant. In fact, outsourcing your bookkeeping duties to Maxim Liberty ensures that the work will be done not only faster, but with better quality. This is a smarter move compared to trying to tackle the task yourself.
Many entrepreneurs realize the numerous advantages that come with outsourcing their bookkeeping operations. Here are the top five benefits you will enjoy:
- Save money: Outsourcing your bookkeeping requirements to an online/virtual service saves money you would have otherwise spent on part- or full-time employees and their benefits. Plus, you save on possible productivity costs associated with recruiting employees. When you outsource, you only pay for what you need.
- No office distractions: By taking away the distractions of the office hustle and bustle from their primary duties, a remote bookkeeping company can offer you more focused work.
- More time: As an entrepreneur, the biggest asset you have is your time. Outsourcing critical operations allows you to put in more time into your company.
- Expertise: An online/virtual outsourcing service gives you full-time access to a professional bookkeeping team without paying for services around the clock. The team is highly skilled in the best industry practices and also has the right technical support for certain tasks, making your work easier and more effective.
- Various scalability options: Once you outsource your bookkeeping, you have the option of either cutting back or expanding without moving too many resources around. At every stage of your business’ growth, you need to have a team you can rely on to provide the best plans and options aligned to meet your goals.
Before you invest in hiring a bookkeeping agency to take care of the financial side of your business, it is critical for you to ensure that you are on track to building the best relationship possible with the bookkeeper. This will, in turn, set your business on the path to long-term success. Here are a few things you should consider:
Bookkeeping should be a priority: Handling your bookkeeping activities like an afterthought is setting yourself up for disaster when you are being audited, applying for a loan, or filing taxes. In addition, there is a possibility that you will miss out on important money-saving or tax deduction tools. While bookkeeping may involve lots of work on the front end, the effort does pay off in a couple of months when the business finances are in the clear.
- Keep track of both expense receipts and receivables: Keep your records organized and accurate. This means having physical and digital records in a secure location as well as having a backup system. Make your system as clear as possible so that your bookkeeper can understand where to find things fairly easily and quickly. In addition, delineate your business and personal expenses by setting up separate credit cards, checkbooks, and bank accounts. Track due dates on invoices and bills so you have an updated record of all your receivables and payables.
- Deploy technology: Handing over stacks of crumpled receipts and invoices to your accountant is a huge time waster. Instead, strive to automate as much as possible to free your bookkeeper’s time for critical tasks. Luckily, there are various online and offline platforms that can help you achieve automation – no matter the size of your business.
The bottom line is that outsourcing your finance processes is the perfect solution for your bookkeeping and accounting problems. Even as you work with your accountant, remember that he or she is a part of your team. These professionals will prove pivotal in creating a strong financial plan that will keep your business alive, even during challenging times.
