Have you been spending a lot of time on your books? How much time do you schedule for bookkeeping, and how much time do you actually spend? Are you tired and overwhelmed? Maybe there are other things that you could have been doing instead of sitting in that chair for hours, trying to make sense of it all. As you start your business or try to run your small to medium enterprise (SME), you find out just how vital bookkeeping is for you. With that realization comes another one. You need a bookkeeper who can take care of it all so you can go and do what you’re good at; expanding your business, making sales, converting prospects, and more. Yes, there is money involved when you talk about hiring a bookkeeper in Oakville or anywhere else in Canada, for that matter. But in the long run, it pales in comparison to the money you might lose by not hiring one.
Here’s what you should know about the cost of hiring a bookkeeper in Oakville versus the cost of not hiring one.
The Cost Of DIY Bookkeeping Vs. Hired Bookkeeper
Maybe you are good at it, and maybe you are not. If you are not good at it, it means a plethora of paperwork and a lot of confusion. If you are good at it, it means hours and hours of work that you could have spent elsewhere. You’ve surely heard the phrase “time is money,” right? Well, sometimes we can spend the time on money and then lament the fact. You could hire a bookkeeper in Toronto or Oakville and ensure that while they keep your books neat and tidy. You can now spend all your time growing your business, searching for new markets and audiences, increasing brand visibility, and more. These are the things that you were supposed to do. This is the way you make more money instead of losing it.
Now, let’s add another variable into this equation and see what it becomes. We have been assuming that you are good at bookkeeping. That is why you are losing a little money by not hiring a bookkeeper, whether you are in Oakville, Vancouver, or anywhere else in Canada. Now, let’s see what happens if you are not good at bookkeeping. This means the cost will dramatically increase. You are not doing your books properly, spending more and more time to find out your mistakes and how to fix it. And these are only the direct costs of you not hiring a bookkeeper. The indirect costs add up to it and make it even more problematic. You might be good at it or not, you are not spending the required amount of time on your day-to-day operations. You are not mingling with the customers, or if you are online, spending time chatting with them or interacting with them on social media. Your brand image could have been so much better.
How A Bookkeeper In Oakville Can Lower Your Business Cost
Manage Your Growth
Growth is good, right? But it has to be manageable. You can make millions one day and lose them the next.
It happens when you are putting all your focus on the business and not focusing on your paperwork. But you are not good at the paperwork, or if you are, you don’t want to do that. One thing leads to another, and you find yourself spending more than what you are taking home. Your receipts are not organized. Your bank transactions are all over the place, and you don’t even remember making a monthly financial report. Here’s where a bookkeeper can come in handy. They can take care of all that work for you and make sure that your business keeps growing. This is where you figure out what is the worth of a bookkeeper in Oakville.
Save On Taxes
Who doesn’t want to save on their taxes?
Nobody, that’s who.
We all want to avoid as many taxes as possible, but it is a necessary part of the business. But we can get a lot of leverage by recording all our expenses properly and having an accurate income statement. Otherwise, you might have to pay more than you should. Also, you have no one to tell you about all the deductions and write-offs.
Moreover, suppose you ever have an audit, which you will. In that case, you will have to show accurate transaction records if you want to avoid huge penalties.
All of this just adds to your stress, and that brings out other ailments.
This is what a bookkeeper is supposed to do. He keeps you healthy and smiling. They make sure that all the receipts are in order and maintained in a sequence, so your business doesn’t get penalized. They make sure that the audit goes smoothly, and they help you take advantage of all the deductions and write-offs so that you don’t have to pay high amounts of taxes.
Reduce Payroll Tax And Other Errors
To err is human, but the most significant error that we make is not hiring an expert for the job. A bookkeeper can help you reduce the chances of mistakes with payroll taxes and other financial situations. Remember—payroll is quite tricky. You have to do it on time, and you have to consider the taxes and the respective documents to file. Even a tiny mistake can create lots of trouble for you. A bookkeeper can make sure that the above scenario never happens and that you save as much of your money as you can.
Prevent money theft and fraud
No matter how much you trust our employees, there are a few bad apples in every bunch. You could think of them all as trustworthy and loyal, but sometimes theft and fraud do happen. If you have a bookkeeper handy, they will be able to keep a close eye on your finances and catch the miscreant as they go about their business, thinking their activities will go unnoticed.
Still Can’t Afford a Bookkeeper?
Nowadays, every business owner needs a bookkeeper who can accurately manage their books and keep their finances updated. But there are times when you might think that you cannot afford one. Do not let that thought get the best of you. In today’s market, you need a bookkeeper in Oakville who can save you from all the known and hidden costs. If you really can’t hire a bookkeeper, we suggest keeping your books as accurate and organized as possible. This way, when you do hire a bookkeeper, they will be able to manage it all.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.