Yes, yes & YES! Yes, you do need a bookkeeper, even if you have Quickbooks or another software that assists you with your books.
We understand the importance small businesses may emphasize in saving money where they can in the beginning, however, certain decisions are not the safest routes. The accounting software choice and how it’s operated when relied upon alone may cost you more in the long run. Accountants and bookkeepers can offer so much more than Quickbooks.
In this article, we will summarize the most overlooked aspects of small businesses when it comes down to savings on accounting and taxes. We will focus mostly on the most searched question, Why You Need a Bookkeeper Even If You Have Quickbooks?”
Here are a few reasons that interacting with a professional is better than relying on Quickbooks alone.
Catch More Mistakes
No matter how careful and detailed you are, mistakes will happen. Whether you type the wrong number or write in the wrong column, errors can easily go overlooked until found when analyzed by an accounting professional preparing your taxes.
Unfortunately, although user-friendly, Quickbooks will not let you know when you make a mistake, simply because it won’t realize it either. While the software is helpful, it wasn’t created to catch accounting regulations mistake and won’t account for user error.
A professional, on the other hand, can scan documents for intent and use logic and reasoning in ways that software can’t. Accountants or bookkeepers who have worked with you for a while are also familiar with your company’s history and processes and will be aware of areas may need careful inspection.
While software can seem like an affordable quick fix, financial mistakes often cost more than hiring an accountant.
1. Offer Suggestions
Having a professional accountant or bookkeeper by your side can assist greatly, as they can look at all your financial data and offer suggestions based on it. For example, they can make and share reliable monthly statements with you. These statements will show how you spent your money, how much money you made, and if you’ve been profitable for the month or not.
By having these monthly reports available and with accurate data, you can quickly fix any issues involving cash flow before they grow too big to handle. These reports also a great source and quick source should the IRS decide to audit your numbers. Having these accurately reported will provide the auditor ease and trust, allowing you the business owner tons of savings; accountant representation and taxes.
Accountants can also offer strategies to grow your business if you feel the need for growth or other projects. Strategies offered by professionals can include how to get more investors, what risky moves may be worth taking, which risks avoiding that will trigger an audit and who to hire or partner with.
2. Teach You How Money Works
With the ease and popularity of establishing a business nowadays, it has become extremely popular to start your business the next day. We understand that a large sum of new business owners are familiar with the basics of how money works, but how accustomed are you with complex money flows? We have seen several businesses with a rapid speed, but in a short period of time begin to deplete funds due to mistakes, poor decisions, and/or poor management.
A bookkeeper or accountant can properly guide you through the process of how money works when you run a business. While you can create a budget that includes products, payroll, and utilities, as well as other common expenses you may not have considered.
3. Handle Taxes
Taxes are the one important detail most forgotten by new business owners. Either new or established business owners tend to only think of taxes during the most leading to tax return filing time. We have noticed that taxes are most times not a priority either for new or existing business owners. But we have also come to the realization that those that avoid getting taxes done are those that do not understand their numbers. Second are those that utilize some sort of accounting software but do not understand how it truly functions and for that are not aware of how to read the results. For these reasons, poorly managed accounting software can make it more difficult and frustrating instead of assisting tax filing procedures for both parties; taxpayer and accountant.
If your business had complex financial changes like takeovers, mergers, or expansions into a new industry, you’d definitely want assistance from a professional. These are topics that event among professionals is consistently reviewed for proper delivery and should not be handled without the proper knowledge.
4. Avoid Audits
A bookkeeper’s highest priority is to assist you avoid audits. Audits can happen for a variety of reasons, like form mistakes, charitable deductions errors, over deduction in certain expense categories, inadequate expenses for certain business activity or changes in tax laws.
Having an accountant that understands your accounting process and procedures on your side during an audit is a great asset, especially should you be randomly selected for an audit as IRS does. Such an accountant will understand what the auditor expects and will communicate in the same accounting language which most business owners do not understand, which in the majority of cases will help expedite the audit process with ease.
5. Give You One Less Thing to Worry About
Even though it is understandable that small business search for saving strategies, and most in the beginning tend to not search for an accountant until tax season is around the corner, this is not the best route to follow. At the end, the financial tasks can be overwhelming and leaving the business with too much to worry about, without having accurate results. Having a trustworthy professional on your side, either being a bookkeeper or accountant, may not solve all your business problems, but they can take many financial tasks off your plate, so you can focus on what matters most, which is promoting your business.
There are many tasks accountants and bookkeepers can assist small business with. Can send and pay invoices, handle payroll, and track sales. They are the perfect partner for small businesses because they allow you to focus on more critical areas of your business.
SA Finance & Accounting Inc Wants to Help You!
While Quickbooks is user-friendly and convenient, it lacks a human accounting knowledge foundation touch. Keeping your business on track, catching mistakes, and offering helpful solutions are just a few things an accountant or bookkeeper can assist with.
SA wants to assist and support small business owners like yours with all their financial needs. We want to be more than just an accountant; we want to be a teammate who inspires you to grow your business more than ever.