After successfully launching a small business, many entrepreneurs decide to take on the task of keeping their own records. They often feel that bookkeeping software will be all the help they need to keep their business on the right track. Does this sound like you?
Here's a piece of advice. The extra time spent tracking and understanding your company’s records can easily pull your attention away from the areas of business that need you most. A financial professional, such as a bookkeeper or accountant, makes sure that your business is earning money as efficiently as possible. But, which one is right for you?
Accountants
An accountant analyzes a company’s financial data, including its sales, purchases, payments and receipts. These individuals use the data to prepare financial records, predict business trends, forecast the opportunity for growth and manage unnecessary spending. They handle many of the “big picture” aspects of a company’s finances, rather than day-to-day operations.
For most small businesses, it isn’t necessary to hire a full-time accountant. A business typically doesn’t have enough work to keep a full-time accountant busy until they have around 30 employees. Whether full time or an outside source, an accountant can prepare the systems your business needs to accurately track its finances.
Bookkeepers
A bookkeeper records and organizes the financial data that accountants analyze. This means tracking all profits and expenditures precisely in order to create an accurate, complete record. They follow the rules, or internal controls, laid out by the accountant to minimize errors and as a deterrent to theft or embezzlement.
While bookkeeping software makes it possible for an entrepreneur to track their own records and report them back to their accountant, hiring an outside bookkeeper can free up time and keep your books accurate. All of the data that bookkeepers collect is vital - not only to accountants, but also to the day-to-day operation of a business.
The Benefits of Hiring a Professional
It’s difficult to make decisions on how best to spend your money if you aren’t exactly sure how your money is being spent. With the help of financial professionals, your business can actually save money that you didn’t even realize was being misused.
With your payments and due dates being tracked by an accountant or bookkeeper, you can save your company from any missed payments or late fees. You’ll also have less to fear, in regard to theft and dishonest conduct, when every transaction your business makes is documented.
Given enough time to analyze the trends and figures of your business, an accountant can even put you on the path to expanding the business and to make sure you have the time and money to help your business grow.
Whether your business is just starting out or is well-established, the assistance of a financial planner will ensure that your business continues to grow financially. A professional bookkeeper can devote time to ensuring your books are accurate so that you don’t have to. Once you’ve had help making sure your books are in order, an accountant can use that data to help you decide the best course of action for your business.