Did You Know Hiring a Bookkeeper Makes Your Small Business Taxes Easier?
Hiring a bookkeeper makes your small business taxes easier, and I can prove it. Or you can ignore everything I say and let the IRS describe it for you during your audit!
Just kidding!
Well, kind of…
There is so much to know when it comes to doing your taxes, and as a small business owner, I know you’re already juggling too many job titles as it is. When you take on the role of your own bookkeeper, business advisor, cash flow analyzer, and even tax preparer - things can get dicey quick. While bookkeepers don’t usually do tax prep and are definitely not any kind of tax attorney, they CAN get your finances set up in a way that can help your tax professional come April 18th.
This is one area of your life that you can outsource to a professional who will likely save you money, and that precious commodity none of us have enough of these days: Time.
Keeping Accurate Financial Records
THIS! Keeping accurate financial records is not easy. When you’re responsible for the daily operations as a small business owner, chauffeuring your children around to after school activities, running to your relatives’ house to drop off their meds, etc. - it is even more difficult.
Not keeping the most accurate records is going to hurt you financially in the long run. Not only that, but reporting things incorrectly to the IRS can come with some hefty fines and penalties. Don’t even get me started on tracking and organizing all of those financial records – that’s a full-time job in itself!
Luckily software like QuickBooks Online exists and can streamline these tasks for you to a certain degree. But hiring a bookkeeper makes your small business taxes easier by keeping track of your financial records, categorizing and tracking expenses, and reconciling bank statements for you!
Save You MOULA $$
The IRS doesn’t make it easy to understand which tax credits may be available to you, and how deductions actually work. Tax laws and regulations can be super tricky to navigate on your own, and I know any small business owner wants to get the maximum deductions and credits they can.
Did you know you can easily overpay on your taxes and not even know it? Without the in-depth knowledge of how the IRS operates systemically, you might be giving away money that you desperately need to grow your business, and no one wants that!
Hiring a bookkeeper makes your small business taxes easier by making sure your financials are clean, organized, and complete for your tax professional to use. Without a clean set of books, your tax professional may not be able to identify big money tax credits and deductions - and that can definitely affect your tax liability.
Financial Insight
This right here, ladies and gentlemen, is a game/life-changer! Choosing to hire a bookkeeper can not only save you time and money, but it can help you grow your business! Wild, right?!
A bookkeeper can create financial reports that provide a comprehensive overview of your business’ financial health and well-being. These include cash-flow reports, profit and loss statements, and balance sheets.
These bad boys can not only give you a better insight about your business’ health, but they’ll unveil areas where you can cut costs, increase your revenue, and even strategically reinvest in your business. This new clear understanding of your financial position can lead you to making better decisions that positively impact your bottom line.
Time
How much is your time worth? This may be a tough question for a small business owner, but just know your time is worth A LOT. Life is short! You have people depending on you, at home and in the business sphere... so why are you performing so much unpaid labor trying to appease the IRS?
We all have to answer to the tax man, but we don’t have to take on the stress by ourselves! Although the idea of shelling out more money for something that you *feel* you can do on your own is stressful, let me just tell you – it IS worth it, and you’ll end up saving money—and possibly making MORE money—in the long run.
The time it takes you as a small business owner to complete all the weekly/monthly/quarterly/annual tax tasks required to have accurate and organized records alone should have you searching tax databases for a bookkeeper (or just reaching out to me hehe) this instant!
Closing
So, we’ve come to understand that hiring a bookkeeper can save you time by organizing, categorizing, and diagnosing the health of your business. They can also prepare your business for a successful future by helping you make informed decisions while purchasing assets and choosing reinvestment avenues.
If you were on the fence earlier, can you now agree that hiring a bookkeeper makes your small business taxes easier?
Yay! Great!
You’re now on your way to not only increasing the time and energy you can put back into your business, but also the time and energy available to do the things you love outside of the business.
I can take managing your books off your plate so your time with your tax professional this year goes smoothly. Reach out to me to find out more about my bookkeeping services and how they can help your business today!
