How a Bookkeeper Can Organize Your Finances–And Help Give You Back Your Life!
By Serah Blackstone-Fredericks of Books in Harmony
March 24th, 2020
“A place for everything, and everything in its place”. – Benjamin Franklin.
The word "economy" comes from the Ancient Greek "oikonomia" (οἰκονομία) meaning the "management" ("νομία") of the household ("οἶκος"). If we think about our own finances in this way, in terms of organizing or managing our "household" so to speak, certain things become clear immediately.
Have you ever looked around your house, and felt overwhelmed by the mess? Life happens, we are busy, and then all of a sudden we haven't swept in weeks or folded the laundry–it happens to us all! Having a messy space can affect your productivity, your mental clarity, as well as add unwanted stress and distractions to your life. In a messy house, you can't locate things when you need them, and you often end up buying things again that you already had. While some have a knack for cleaning and organization, for some of us it can feel daunting and overwhelming, so we avoid it or shove things under the bed. This may work for a while, but there comes a point when we all have to learn to identify our strengths and ask for help in areas where we need it. For a messy house, you call a housekeeper–for messy finances, you call a bookkeeper.
The same principles of the home all apply to finances–when we keep a “clean house” so to speak, meaning when our books are in order, it will have a positive effect on all aspects of our business and our life. If your books are messy it can create unnecessary stress and confusion about the state of your business, it can make accurate budgeting challenging, and it can cost you in the long run if you miss deductions, forget to cancel subscriptions, or–worst of all–wind up in legal or tax trouble. Big bookkeeping mistakes or messes are always more expensive to fix in retrospect than the cost of a professional monthly bookkeeper would be to keep everything in order. Trying to save money on bookkeeping often results in having to pay more for rushed clean up jobs around tax time. Organized financials are the backbone of any successful business, and a good bookkeeper can save you thousands of dollars, and can save you even more in "time."
As a small business owner, you pour countless hours into building your business, and it flourishes with your passion, attention, and vision. It can be hard to stay focused on moving your business forward and accomplishing your goals when you are inundated with hours and hours of data entry or are trying to manage the books all by yourself. That would be like spending all day cleaning your office instead of actually working on your projects. Here at Books in Harmony, we use the most up to date applications and software to manage your books remotely, in the most efficient and streamlined way possible. We are committed to keeping your books organized and saving you time, so you can focus on the other aspects of your business.
Here are a few benefits of having a bookkeeper:
· Separating your business and personal expenses. This can be a very difficult and time-consuming task, especially if you haven't transitioned to QuickBooks Online and are still doing data entry. Having a bookkeeper help you designate separate business and personal accounts and cards will cut your data entry time down and maximize your deductions, as well as help protect you in the event of an audit. Having another set of eyes on the books can keep you from accidentally adding the wrong receipts or miscategorizing business transactions.
· Tax savings! It’s a no brainer that having a bookkeeper can help you with taxes. People and companies without bookkeepers miss out on thousands of dollars a year of tax deductions by miscategorizing or losing transactions in messy books. Having a bookkeeper will make sure your books are organized, legally compliant, and ready to hand off to your CPA come tax time. Tax time is much less stressful if your receipts have been uploaded electronically and your reports are corrected and ready way before tax day.
· More time to focus on the things you love! The most valuable thing you can save is time. Time is precious and unlike money; you can’t make it back once you lose it. Having more quality time to spend with those you love and on growing your business to accomplish your goals is priceless.
· Audit protection. No one likes to be audited–and good bookkeeping can help you avoid being audited at all–with clean and organized books you can be confident that your financials are ready for whatever may come your way.
· Cash flow, budgeting, and decision making. Cash flow is the lifeblood of a business, and it’s easier to make decisions when all the information you need is accurate, and right at your fingertips. Knowing how much money you can spend, and how much is coming in will help keep your business up and running for the long haul and give you peace of mind.
At Books in Harmony, we pride ourselves on our ability to help our clients streamline and "harmonize" their finances so they can get the most out of their lives. Not only can we help you declutter, clean up, and organize your finances, we can optimize and automate your processes to give you back your time to spend on the things that matter most.
Let us help you keep “everything in its place".
(Learn more about how bookkeepers can benefit your small business needs here: https://quickbooks.intuit.com/r/bookkeeping/5-reasons-attentive-bookkeeping-crucial-small-business-success/ some bullet points where sourced from this article)