Many business owners don’t give bookkeeping the attention it deserves. After all, it’s just keeping track of the money coming in and going out, right? But if you want your business to be successful, bookkeeping is key. Bookkeeping is the backbone of any business, small or large, and it provides critical financial information that businesses need to make informed decisions, track progress, and plan for the future. We discuss the top 7 reasons bookkeepers are key to your small business’s success and give tips on making the most of your relationship with your bookkeeper.

What is bookkeeping?

Bookkeeping is the process of recording, storing, and retrieving financial transactions for a business. It includes keeping track of income, expenses, assets, and liabilities and provides businesses with accurate and up-to-date financial information that can be used to make business decisions.

Why is bookkeeping key to the success of your small business?

1. Allows you to focus on running your business

Bookkeeping can be time-consuming and distracting for business owners, especially if you’re unfamiliar with it. Keeping up to date with changing tax laws and compliance requirements can be a burden on a busy business owner, and putting off until “tomorrow” what can be done today can quickly turn into a mountain of work and have undesirable consequences.

A bookkeeper can take this burden off your shoulders. By having a bookkeeper responsible for keeping track of your finances and diving into the complex numbers, you’re free from being bogged down in detail. You can focus on the bigger picture and running your business which can be a significant relief, especially for small business owners who wear many hats.

2. Saves you money

A good bookkeeper will save you money by working efficiently to keep track of your income and expenses. They are experts at what they do and have established methods and systems to get the work done quickly and accurately.

A bookkeeper can ensure you have up-to-date and accurate financial records, which is key to understanding your business’s financial health. This enables you to save money by making informed decisions about where to allocate resources, understanding where your money is being spent and where you can make cutbacks.
A bookkeeper also reduces your reliance on an accountant. The bookkeeper can do the detailed and time-consuming work and then provide the accountant with the information they need to do their job, saving you money on accounting fees.

3. Gives you quick access to crucial information

A bookkeeper can give you quick and easy access to the financial information you need to make business decisions. You don’t need to wait till the end of the month or quarter for your accountant to know how your business is tracking. A bookkeeper can regularly provide you with up-to-date financial information to see how your business is performing, allowing you to be proactive and make decisions promptly rather than reactive and playing catch up.

4. Your finances are under control

When you have a bookkeeper, you can be confident that your finances are under control. They will ensure that all your income and expenses are accounted for and that your financial records are up to date. Your bills will be paid on time, outstanding invoices will be followed up, and employees will be paid correctly and on time.

5. Helps you to manage your cash flow

One of the most important aspects of any business is managing cash flow. You don’t want to be in a situation where you cannot pay your bills or meet your financial obligations. A bookkeeper can help you manage your cash flow by keeping track of your income and expenses and ensuring you have enough money to meet your obligations.

6. Peace of mind

An important benefit of having a bookkeeper is the peace of mind that comes with knowing that your finances are being taken care of. You can rest assured that your books are in order and that you have someone looking out for your best interests.

7. Scalable solutions

A popular option is to outsource your bookkeeping to an organisation that specialises in providing this service. This can be a cost-effective solution, especially for small businesses. An outsourced bookkeeper is a flexible and scalable solution; you can add more hours or services as your business grows. This allows you to control the cost of your bookkeeping and only pay for what you need, saving you money.

How to make the most out of your relationship with your bookkeeper

Here are a few tips to make the most out of your relationship with your bookkeeper:

• First and foremost, communication is key. The best way to make the most out of your relationship with your bookkeeper is to communicate with them regularly and let them know what you need and expect.
• Make sure your bookkeeper is the right fit for your business. Not all bookkeepers are created equal. Be sure to find a bookkeeper that is a good fit for your business, one that you can trust and who has the experience and expertise to meet your specific needs.
• Keep your bookkeeper in the loop. As mentioned before, communication is key. But it’s also essential to keep your bookkeeper in the loop regarding changes in your business. This way, they can stay on top of your finances and ensure that everything is accounted for.
• Be proactive. One of the best ways to make the most out of your relationship with your bookkeeper is to be proactive. This means that you should keep track of your finances and be aware of what’s happening in your business. If you see something that doesn’t look right, raise it with your bookkeeper so they can address it.
• Be prepared to pay for their services. Many small businesses make the mistake of thinking they can’t afford a bookkeeper. But the truth is, you can’t afford to have one. A bookkeeper can save you time and money and help you avoid costly mistakes. So be prepared to pay for their services.
• Be sure to give them feedback. As with any relationship, it’s essential to provide feedback. This way, your bookkeeper will know what they’re doing well and what they can improve on.
• Don’t be afraid to ask questions! A good bookkeeper will be happy to answer any questions about your finances or their services. This is a great way to learn more about how your business is doing financially and get valuable insights from someone who is an expert in the field. If you’re not sure about something, just ask.
• Remember that your bookkeeper is there to help you! If you ever feel like you’re in over your head, or if you have any concerns, don’t hesitate to reach out to them. They have intimate knowledge of your finances and can offer valuable advice and guidance so you can make the best decisions for your business.

A bookkeeper is a key part of any small business. They can help you focus on running your business, reduce your accounting costs, and manage your cash flow. They can also provide you with up-to-date financial data so you can make informed decisions about your business. By following these tips, you can make the most out of your relationship with your bookkeeper and ensure that your business is running smoothly.

If you’re looking for a bookkeeper, Accario can help. We offer a wide range of bookkeeping services that can be customised to meet the specific needs of your business. Contact us today to learn more.