What does a bookkeeper do?

We get asked a lot, “What does a bookkeeper do?”. The simple answer is, “We keep track of what’s happening with your money.”

It may surprise you to know that a large majority of small business owners don’t know what’s going on with their money. They know what their gross revenue is (how much they deposit into their bank account). Occasionally they know their total operating expenses (how much is withdrawn from their bank account). Many business owners believe this is enough information to tell them if their business is doing well or not.

Unfortunately, these numbers won’t tell an owner if their total operating expenses have increased 30% in the last two years, their profits are down 12% in the last year, and they won’t have enough money in the bank in two months to make their quarterly tax payments. This information can only be found if you’re following good bookkeeping practices and checking your financial statements.

Tracking your money may seem like a “no-brainer” when it comes to owning a business, but it becomes very difficult to track where the money is going when you’re managing employees, sales, marketing, current projects, and expanding your business. If you don’t know where your money is or what it’s doing, it may run away from you.

Bookkeepers Provide Vital Financial Information

This is where a bookkeeper comes in. We track and monitor your finances, so you are able to make important decisions about your business. Is it time to expand? Are you are able to hire another employee? Can you afford a loan payment for a new piece of equipment? These questions will be easy to make when you can see the full picture.

Bookkeepers Make Taxes A Breeze

Bookkeepers help you prepare for tax time. This can be the most stressful time for business owners. You break out the ol’ shoebox full of receipts and scramble to sort everything for your accountant. Your accountant is doing their best to give you the most deductions possible, but if you’ve miscategorized your expenses, there’s not a lot they can do for you. When you hire a bookkeeper, tax time should be a breeze. We keep your books up-to-date all year round, thereby eliminating the yearly tax scramble. We’re able to prepare the reports your accountant needs and deliver them in a timely fashion. This will save you countless hours of work and many headaches at the end of the year, and it will likely save you hundreds or even thousands of dollars in additional accountant fees.

Bookkeepers Are A Helping Hand

Lastly, bookkeepers are able to provide additional services to streamline your business operations by taking care of payroll, 1099’s, paying bills, and sending invoices to customers. We want to make sure you can spend your time and energy running your business, not worrying about money.

Do you want to know what’s happening with your money? Let us be your most trusted advisor! Contact Balanced Sheats today! (928) 793-2022 or contact@balancedsheats.com.

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