If you are a start-up with your finances in a volatile state, hiring a bookkeeper can seem like an expensive decision, but in the long run, this will be a worthy investment. There are various aspects of finance like inventory related expenses and tracking them, keeping tab of payments you need to make and receive, unplanned expenses, maintaining an accurate record of every transaction that happens in your account and so on. Trying to handle all this alone can be tedious and lead to mistakes.
This post shares some valuable insight on how a professional bookkeeper can stabilize your financial flow.
Assistance Professional Bookkeepers Provide
A bookkeeper can help you in several ways including the following:
- Using latest bookkeeping software like QuickBooks, bookkeepers keep a record of all invoices generated.
- Carry out bank reconciliation services
- Report any irregularities or mistakes in the data to the management
Role of Bookkeepers in Increasing Your Revenue
- Controlling your budget
As the bookkeepers become familiar with your business expenses, their reports will be very valuable to your accountants in determining the appropriate budget for the company. Since they oversee processing the supplier invoices and your expenses, they know the pattern of your expenses. As a result, unnecessary expenses can be easily detected and eliminated. This, in turn, will lead to direct savings and increase the profit significantly.
- Help in making crucial financial decisions
There are a lot of factors that should be taken into account when you are about to make any financial decisions. Be it a new product launch that your company is undertaking or an extravagant marketing campaign- a lot of expenses are involved. Bookkeepers maintain the record of all your expenses and share the data with the accountants.
The bookkeeping department can also give you an idea about your company’s financial capacity to afford new recruits.
- Prevent debt and bankruptcy
When you have a financial expert working for you, they will be dedicated to checking your dues, debts, and payments, and make sure they are cleared and up-to-date. They generate the required reports which are analyzed by accountants and they try to make sure your debts are cleared in time. In extreme situations, like the business being on the verge of bankruptcy or have incurred a huge loss, how accurately your bookkeepers maintain the records can help you out of the crisis. They stabilize the cash flow by regularly keeping in touch with clients and ensuring your payments are never overdue. When all the records are in place and you have a clear idea about the present financial condition of the company, you can easily take the necessary financial decisions to clear the debts and grow the business simultaneously.
- More free time
As the professional bookkeepers take charge of maintaining your company’s financial records, a major responsibility is lifted from your shoulders and leaves you with more time to work on the other aspects of growing the business. You can make better business decisions when you are not overworked. Get the maximum productivity out of your free time and oversee your finances when your company relies on bookkeeping software like PeachTree and FreshBooks. This gives you the power to monitor your finances on the go through the applications and focus on other business aspects at the same time.
- Identify valuable clients
Since the bookkeeper is solely dedicated to recording your financial transactions, they have the time to delve into the transactions you had with every client. This way, they can identify your best clients, and customers and the profit margin you have. All the reports generated by the bookkeepers are shared with the accounts department of the company and they in turn can assist you regarding any crucial financial decisions for increasing the productivity of the company. The products popular among these clients, the frequency of business you get through them and the profit margin all are recorded by the bookkeepers.
The various scenarios discussed above are the different ways in which bookkeepers can assists start-ups and small businesses in flourishing and making the most of their capital. Hiring an experienced bookkeeper, therefore, promises to have a positive impact on your business growth.