Bookkeeping for a small business requires skill and understanding of the bookkeeping functions it takes to run a business financially. Many small business owners are easily overwhelmed when it comes to bookkeeping, yet numerous resources and tools can make small business bookkeeping easy and manageable.
Simply stated, bookkeeping is the system of recording your business’s financial transactions, typically in a physical set of “books.” These ‘books’ present your business in terms of financial health, tax status, the ability to pay bills, borrow money, and make decisions regarding operations, investments, and other financial decisions.
Bookkeeping is a must—the dangers of not doing bookkeeping stretch far beyond the financial impact on your business. If you don’t do any bookkeeping, or just for the sake of argument, you do some bookkeeping; you are running your business with blinders on. The absence of a clear understanding of your business’s financial health can seriously affect decision-making regarding hiring, purchasing, and other financially related decisions.
At Expex, we work with small business owners who started their business with a passion, whether jewelry making, vegan restaurants, dentistry, or veterinarians. As their passion grew, so did their business, and simultaneously, their time for bookkeeping diminished. It does not take long to get behind – and it happens more often than you think. As we have discussed, understanding your business and remaining current is essential. Remain vigilant with:
Understanding income statements and balance sheets are a necessary function of running a successful small business. Financial statements refer to your income statement (also referred to as your profit and loss or P&L), balance sheet, and cash flow statement. Financial statements provide you with the ability to understand a critical part of your business’s performance. Sometimes, it is too much for a small business owner to balance growing the business and performing bookkeeping duties. It may be time to hire a bookkeeping service.
Is outsourced bookkeeping the right fit for your business? Here are five compelling reasons to outsource your bookkeeping.
Often referred to as virtual bookkeeping, an outsourced bookkeeper manages your bookkeeping tasks remotely. Your virtual bookkeeper is accessible via software applications, such as Expex. The virtual bookkeeper can automate your bill payment process through electronic means, prepares your monthly financial statements, and ensures your books are tax-ready for your accountant.
Outsourced bookkeeping is traditionally less expensive than in-house bookkeeping and can offer a wide range of expertise based on your type of business.
Running a successful small business is a full-time job with little bandwidth available for bookkeeping. Hiring a professional bookkeeping service and utilizing automated bookkeeping tools to manage your company finances will position your business for success.
Expex, based in Schenectady, NY, offers convenient and innovative bookkeeping services to help your small business succeed. Our application, Carly, can do everything a traditional bookkeeper does and more. This financial management program expertly delivers bill payments, bank and credit card reconciliation, and financial records consolidation. Call (518) 389-2305 today to get started, or contact us to learn more about Carly.