Why Have a Bookkeeper?
It is tempting for small-business owners to want to handle their own bookkeeping and tax preparation. After all, there is a lot of excellent accounting software out there to help them. Additionally, many business startups begin with a few partners who do everything, only hiring outside contractors when absolutely necessary.
But just because you can do something doesn't mean you should. There are indirect costs involved with everything that falls into the do-it-yourself category. These include the time you spend doing it yourself instead of tending to other business matters and the possibility of missed opportunities that come with not having something handled by a full-time expert in that task.
As a bookkeeping firm serving North Fort Worth, Keller, and Grapevine and surrounding communities, as well as clients as far as the East Coast, we at Goss Bookkeeping & Payroll Services, LLC understand that most small businesses need to hand off their tax preparation, and at least some of their bookkeeping, to a professional at some point. Below are some reasons why, as well as the three things to keep in mind when hiring outside help.
Good bookkeepers make tax planning easier
People usually think of a bookkeeper as someone they interact with while compiling records for corporate taxes, but the truth is, that you will get the most out of a bookkeeper if you're able to talk with them about timing and planning issues outside the time crunch of the tax preparation season.
Issues such as how much to spend on new business assets, whether to lease or purchase vehicles and other equipment and what your reasonable compensation should be can and should be reviewed and discussed during the year. A good bookkeeper provides accurate records that make this discussion easier to have. You should look at the bookkeeper to be proactive in their dealings with you.
Ideally, your bookkeeper helps you look not just at the business's bottom line, but how it is getting to that bottom line and what the prospects might be for the future.
Keeping good books is a business necessity in North Fort Worth
You also need a good bookkeeper, either someone on your staff or an outside pro. The key question is: do you have someone within your staff, aside from you, who has the knowledge and skills and can handle the demands of the job? Do you have an employee who understands such matters as double-entry bookkeeping and how to make journal entries? If not, look outside.
A bookkeeper is going to be focused on properly recording the day-to-day financial activities of your business. This may sound simpler than the review, planning and tax-return preparation activities that your CPA engages in. But, without good bookkeeping and good books, business owners can't properly do their job.
Good bookkeepers will record all your receipts and expenses, track accounts receivable and payable and, in the course of entering all your financial transactions, also create a balance sheet for the business. Some bookkeepers also handle payroll services for their clients; others prefer to work with dedicated payroll companies. Depending on the size of the business, a bookkeeper may work with a client a couple of days a week, weekly, or even just once a month.
Your bookkeeper and CPA need to work together on your behalf
There is definitely some overlap between the two. A CPA may also offer bookkeeping services. However, most CPA practices that offer bookkeeping will turn that portion of your needs over to a staffer who is primarily a bookkeeper. That makes sense — while the bookkeeper balances the general ledger, the CPA can focus on larger, more pressing issues.
CPA's and bookkeepers should and will work together for the benefit of their clients. For example, a bookkeeper won't necessarily know how a company's assets are being written off or depreciated. The CPA is responsible for providing that information so that proper depreciation adjustments can be made to the company's books.
Sometimes, small businesses will handle their own bookkeeping while retaining a CPA to review the books annually as part of overall tax preparation and planning. Again, this can work if the business has someone with the knoweldge and skills and the time to devote to this important task. Otherwise, get an outside pro, just as our North Fort Worth firm is your outside bookkeeping pro.
Contact a bookkeeper today
Bookkeepers and CPA's serve two purposes for small-business owners: they help keep the business out of trouble by accurately recording and reporting the business's financial information and they allow the business owner to focus on his or her primary job — running the business — while they focus on their financial specialties. If you operate your business in North Fort Worth, Keller, Grapevine as well as Fort Worth and surrounding communities and need professional bookkeeping assistance, reach out to a professional bookkeeper like Goss Bookkeeping & Payroll Services, LLC today.
GOSS BOOKKEEPING & PAYROLL SERVICES, LLC
PO Box 77013