With personal income and unincorporated business tax returns (hopefully) in the rear view mirror, it’s time to look ahead to what the rest of the year holds for you and your business. Whether you’re an unincorporated business with a December 31 year end or an incorporated business with your year-end during the calendar year, it’s a good idea to regularly review the financial performance of your business to avoid any unpleasant surprises at year-end. Here are some ways a bookkeeper can deliver value to your business beyond simply keeping your books current and accurate.
Keeping Your Books
At a bare minimum, a bookkeeper should help you manage the day-to-day finances of your business. Depending on the type of business you own and how big it is, this might include creating invoices to send to your customers and making sure they get paid on time, managing payroll and all of the necessary deductions and remittances, entering your suppliers invoices and making sure they get paid on time, reconciling your month-end bank account and credit card statements and filing your HST remittances.
A good bookkeeper will make sure that this is done in a timely and accurate manner so that you and your business management team can make the best business decisions in a timely manner.
Reviewing Past Financial Performance
But above and beyond simply entering transactions into your accounting software, your bookkeeper should provide a whole lot more value. Understanding the past financial performance of your business can help you be more successful in the future.
Regularly reviewing the revenue your business has earned in the previous weeks, months or even quarters can help you understand how your sales are. Your sales might fluctuate for a number of reasons including the time of year, the products and services that you sell, and how actively you’ve been marketing your business, so your bookkeeper will have an idea of an appropriate amount of time to look back. If your sales aren’t where you expect they should have been you can make changes to your business to help get things back on track.
Similarly, your bookkeeper can help you understand how the expenses of your business have been performing in the recent (or extended) past. There are several things that might change in the cost of running your business such as the cost of buying products you need to purchase to run your business, the cost of fuel and so on. If these expenses are significantly higher than what you expected it might mean that your business is running at a loss and changes need to be made.
Setting the Path for a Successful Financial Future
It’s always a good idea for business owners and managers to create a financial plan or budget for their business, because doing so allows you to outline how you expect the business to perform and hopefully forecast a profit. Your bookkeeper can help you project each of your revenues and expenses so you have a detailed business budget and they’ll help you set realistic and achievable goals for your business.
Having a budget in place will allow you to track the performance of your business and make any necessary changes during the year, minimizing that unpleasant experience of getting to your year-end and finding out that your business fell short of expectations and incurred a loss.
How Simply Bookkeeping Can Help
We strive to provide our clients with the highest value possible in the bookkeeping services that we offer. Not only will we keep your business books up-to-date and accurate, but we’ll build a trusting and confident relationship with the business owners and managers and provide them with the financial insights they need to run the business as profitably as possible.
You should expect a lot more from your bookkeeper than simply entering financial transactions into your accounting software package. Your bookkeeper should help your business management team understand the past financial performance of your business and set a course for running your business profitably in the future. Regularly checking how the business is performing allows you to make any course corrections during your fiscal year so you can avoid a net loss situation at the end of the year.
Simply Bookkeeping1 provides professional bookkeeping services for freelancers, solopreneurs and owners of unincorporated and incorporated businesses. We customize our services based on your needs – we only see some of our clients a few hours a month but others we see on a more regular basis. Our services are reasonably priced and we tightly track the amount of time we spend working for you so you only pay for the services you get.
To learn more about us, please visit our website at www.simplybookkeeping1.com or contact Michele Hyde by phone at (647) 668 – 9363 or by email at firstname.lastname@example.org.
Have Your Say
Does your bookkeeper provide value beyond entering transactions into your accounting software? If so, we’d love to hear how! Also, please share this article using the social media share buttons – other people might be thinking of hiring a bookkeeper and your insights might help them.