There are a lot of reasons to hire a professional bookkeeper. These reasons vary from industry to industry and from one business to another. Despite their differences, the primary benefits of hiring a professional bookkeeper are the same. Here are the top 3 reasons to hire a professional bookkeeper:
Manage Cash Flows
Businesses need cash. They need cash to pay for ongoing operations, from payroll to inventory, and for growth. Access to cash can allow businesses to take advantage of opportunities that come up and weather downturns. It also allows a business to pay its expenses on time–which can result in good credit and the ability to obtain financing. But how much cash does the business have or have access to? This is a bookkeeping question. A professional bookkeeper can provide answers to how much cash the business has at any given time.
Lower Tax Bills
Taxes are typically a business’ largest expense. This includes income, excise, payroll, property, and other taxes. Taxes that are based on income–state or Federal–typically allow deductions in computing the tax. The deductions are based on amounts spent during the tax period. To take these deductions, one has to know what their expenses are. The same can be said of most other taxes, such as unemployment insurance taxes. These taxes are only computed based on a set amount of wages paid to the employee. Amounts in excess of the limits are not subject to tax. To know what these limits are, one has to know what was paid to the employee. These are bookkeeping questions. A professional bookkeeper can provides an answer to how much was spent for computing taxes.
Professional bookkeeping can also free up your the tax advisor to provide tax advice rather than scrambling to put together the books just before the tax returns are due. This alone can save thousands of dollars.
Businesses need to know where they stand financially to be able to make basic and strategic decisions. These decisions range from adding or stopping services or discontinuing products, expansion and hiring plans, and capital outlays for R&D or equipment. It can also guide the business in what customers or clients to go after, keep, or not keep. Professional bookkeeping produces the financial reports that are needed to make these decisions.
Get Help With Your Business
We help businesses across the country with bookkeeping and taxes, but we focus on providing bookkeeping in Houston, Texas. Call us today to see how we can help, (832) 915-1040.