A meaningful, well-organized financial record ensures that your operations will run more efficiently on a daily basis, and is the foundation of a successful business. Our qualified staff can assist you with the day-to-day tasks associated with bookkeeping.
What Are the Advantages of Bookkeeping?
The number one thing bookkeeping does for a company is to create an ongoing set of books that helps to increase accountability and transparency. A bookkeeper helps you track your company’s cash flow, helps you with billing, and can help you establish business lines of credit to grow your business in a more effective and efficient way. A bookkeeper can also help to resolve discrepancies occurring in company accounts and facilitate finance-related communication between other staff members to ensure that information is being fully and accurately funneled into the company ledger.
What Are the Fundamental Functions of a Bookkeeper?
One of the advantages of having a bookkeeper to meet legal obligations, as they maintain the business accounts and generate financial reports. Businesses are required to track and document revenue and expenditures in order to pay appropriate taxes each year. Not maintaining company books can result in government penalties if you are audited and asked to produce evidence of your company’s business transactions.
Accountability and Transparency
Another advantage of having a bookkeeper is to prove company accountability and transparency. Bookkeeping creates accountability with customers as you are able to look up previous transactions to verify prices or payments made. It also creates accountability among business partners, since authorized partners may access the company books to review revenue and expenditures, or to scan for signals that money is being used or reported inappropriately. In these and other ways, bookkeeping creates a transparency to potential investors who have an interest in the documentation of the business’ financial health.
Bookkeeping creates hard data that business owners can use to make informed decisions about expanding, trimming costs, or taking out additional lines of credit. Data from bookkeeping can be used to justify closing a store location, hiring an additional employee, or expanding to include additional products or inventory.
It takes time to maintain the books by adding new information, and it also takes time to effectively analyze bookkeeping records in order to make financial decisions. Our professional bookkeepers take on these responsibilities, saving you time and allowing you to focus on other aspects of running your business.
Bookkeepers also help to defray mistakes and inaccuracies. Accidental inaccuracies can result in lost time, which translates to lost money. They can also protect you from intentional inaccuracies created on purpose by untrustworthy employees or business partners in order commit fraud, tax evasion, or theft. Hiring an auditor to review your bookkeeping records can help identify these problems.
Hiring a full-charge bookkeeper for your office, creating space for a new employee, along with equipment and bookkeeping software can be costly, and even prohibitive, especially if training and updates are needed. LS Bookkeeping and Tax Service has all the tools necessary for effective auditing and reporting, thereby keeping your costs low.