As a small business owner or an entrepreneur, you must have thought about doing your own bookkeeping. It ensures that you don’t overshoot your budget and keeps you on top of the finances. But have you ever considered the fact that you actually might be hurting your business? There is a lot of bookkeepers that can do for you what you cannot do yourself. They have the keen eye, the knowledge, and the experience to handle different situations proactively. And that’s not all. There are myriad reasons why you should hire a bookkeeper in Oakville or anywhere else for that matter.
Sign #1: Inappropriate Time Management
Bookkeeping is a full-time job. It takes up a lot of your time. This is time you could spend in other activities like launching your products, dealing with customers, enhancing your services, creating a relationship with customers over social media, or more. The more time you spend in bookkeeping, the less time you will spend on all these activities and more.
Sign #2: Ineffective Management of Books
Unless you are a financial wizard, there is a good chance that you won’t be able to manage your books like you want to. This will become a big challenge in the future as you try to find out the cash flow to and from your business. It might hamper your ability to find out just how much you are making and how much you are spending. This, in turn, decreases your future income. Furthermore, if you do not manage your books timely, you will have tons of your bookkeeping tasks pending from your side.
Sign #3: Relying on an Accountant
You might think that you don’t need a full-time bookkeeper for your accounts. A lot of businesses do that. They just hire an accountant to complete their tasks during tax season. Without a bookkeeper who is intimate with your books, you might not be able to make well-informed and miss out on golden opportunities. Overall, you will lose more by not hiring a bookkeeper than you thought you would save. Also, accountants charge more than bookkeepers.
Sign #4: Not Capitalizing on Tax Deductions
One thing that you might not realize is that a lot of your business expenses are tax-deductibles. This information can save you a lot of money and minimize your tax. A bookkeeper can record all monetary transactions and tell you how to lower your taxes. They also help you pay your taxes on time.
Sign #5: You Need Some Rest
Doing all the work yourself can quickly drain your energy and tire you out. As the owner, it is your job to be always present and have the creative energy to market your products and bring in new customers. You cannot do that if you are spending all your time trying to manage your books.
Sign #6: You Are Not an Expert
Like we mentioned earlier, you might be a financial whiz or not. You might be a web developer, designer, social media manager, or anything else. You managing your books is not a great idea. As a business owner, you have to make smart decisions, and one of them is to hire experts for their respective jobs. You trying to do everything can only bring you and your business down.
These are only some of the reasons why you need a bookkeeper in Oakville? Here’s a quick recap of what we discussed above.
- You do not get enough time to perform the tasks associated with your business.
- You stay behind to manage your books.
- You depend on an accountant rather than a bookkeeper.
- You do not realize that you can save money with tax deductibles.
- You are not taking a break from your job.
- You are not the jack of all trades.
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.