From balancing a check book to running a business, bookkeeping services are a huge part of all of it. Without proper bookkeeping, decision makers are left to ponder the pro’s and con’s of huge issues without all the facts, a scenario that can lead to disaster. Below we will list some of the main reasons to utilize bookkeeping services.
The Bookkeeping Master
This YouTube star has a lot to say about bookkeeping in this intro video. He has some good advice, which we will break down below.
- Bookkeeping Services Keep Track of Profit – You are in business to make a profit, so this should be one of the most obvious and enjoyable aspects of bookkeeping. It allows you to see how much money you made, in addition to where it came from. For example, if you sell goods, bookkeeping will allow you to see which items are your best sellers, or more importantly, which items have the best profit margin.
- Assets & Liabilities – In short, keeping track of these figures will allow you to pay the bills on time. This includes keeping up with any rent, mortgages, utilities, loans, and other operating expenses. This mostly applies to the liability side. On the assets side, you can see how much your business is worth. So if you own the land, the building you operate in, or both, these are considered assets and can greatly help your business when it comes time to get a loan, take out a credit card, or other similar activity.
- Decisions – Once you are up to date with how much money you are making, what you owe, and what you are worth, you can begin making smart decisions for your business. Want to buy a company vehicle, hire a new employee, or expand your inventory? The above numbers are a must before making any kind of decision. This also includes budgeting for items like marketing campaigns such as Google Pay Per Click, Bing Ads, and any other form of digital, print, and broadcast marketing.
- Taxes – Last but certainly not least, keeping track of how much taxes you owe is not only good business, it’s also the law. This includes all federal and state taxes, if applicable in the latter. Here in Houston, we don’t have a state income tax, but there are plenty of other taxes in which to pay like property tax, sales tax, and many others.
Time Versus Money in Bookkeeping Services
You don’t have to be a bookkeeping expert to know that all things come down to time and money, or more specifically: how do you want to spend each? When it comes to business, all owners should do a cost to benefit analysis of how much bookkeeping will cost in addition to how much time it will save. You may be surprised to learn that all of those hours you spend keeping the books can be put to better use and even pay for the bookkeeping services and then some.
Bookkeeping Expert Versus Amateur
If all your business keeps track of are a few sources of income and expenses, you may not need bookkeeping services. However, most businesses, even small ones, have many sources of income and expenses, not to mention complex tax figures to keep track of. While having your secretary keep an Excel sheet may sound sufficient, it often isn’t. Only a professional bookkeeper can give you detailed reports on your business, as well as expert recommendations for how to maximize your assets and minimize your liabilities.
Bookkeeping Services Houston
To learn more about how our expert bookkeeping services can help your business grow in a predictable and profitable manner, feel free to contact me.