Keeping your small business finances in order can be daunting. Unfortunately, it can lead to costly mistakes and small business failure if not done correctly.
Hiring a bookkeeper is the best way to ensure your books are balanced and accurate. With the help of online accounting packages for small businesses, you can get a big-picture view of your financial health. This can help you with things like expansion and setting long-term business goals.
Below are some problems you can avoid by hiring an experienced bookkeeper.
Poor Financial Record Keeping
Financial record keeping is the cornerstone of properly running any business. Poor record keeping can lead to critical financial obligations like taxes, insurance, payroll, and more being missed or inaccurately reported.
This presents legal risks and can lead to financial losses due to fines or other related expenses. To avoid the problems caused by poor record keeping, you must invest in online accounting packages for small businesses.
The team at Bookkeeping 101 offers affordable and comprehensive accounting packages.
Inaccurate Budgeting & Forecasting
Creating an accurate budget and forecasting future growth are essential for small business success. Unfortunately, too many small business owners either fail to develop budgets or underestimate their financial needs. This can lead to serious problems, such as cash flow issues or an inability to meet financial obligations.
Hiring a bookkeeper with experience in budgeting and forecasting can help you create a realistic picture of your business’s financial needs. A professional bookkeeper can also provide insights into areas where you can save money, such as vendors or marketing opportunities.
Even the most experienced business owners can make costly payroll processing mistakes. These errors can anger your employees and get you in trouble with the Internal Revenue Service.
Here are some common payroll errors made by inexperienced business owners:
- Incorrect withholding of taxes
- Neglecting to withhold Social Security and Medicare taxes
- Failing to track hours worked accurately
- Misclassifying employees as independent contractors
- Not calculating overtime correctly
- Late payment of payroll taxes
By working with a professional bookkeeper, you can rest assured that your payroll processing is accurate. You can keep your company financially sound with the right online accounting packages for small businesses.
Invoicing and Collection Delays
Late invoicing and collections can be a significant problem for small businesses. Money owed to the business may never be collected if invoices are not sent out promptly. This can lead to cash flow issues because there is no incoming money to cover expenses.
It can also damage relationships with customers, who may hesitate to pay if they don’t receive their invoices on time.
A bookkeeper can help you keep track of your accounts receivable and ensure that invoices are sent promptly. They can also set up structured billing processes to ensure customers are billed on time and payment is received promptly.
Looking For Online Accounting Packages For Small Businesses?
Are financial errors driving your business to the brink of collapse? If so, invest in one of our online accounting packages for small businesses!