Many business owners delay hiring a bookkeeper until they find themselves overwhelmed or facing issues with government taxes, such as sales or payroll. To help you avoid these pitfalls, we’ve compiled a list of 35 ways a bookkeeper can streamline your operations and save you money.
Identify Your Key Areas of Need
Don’t wait until it’s too late to seek assistance! Here are some ways a bookkeeper can help:
- Ensure timely customer invoicing to facilitate prompt payments.
- Keep track of customer invoices to know who owes you and when to follow up.
- Avoid selling to customers with outstanding payments.
- Accurately calculate and collect interest on overdue accounts.
- Improve cash flow to reduce borrowing needs.
- Maintain inventory levels to prevent lost sales and rush delivery charges.
- Avoid overstocking on unsold items.
- Set selling prices based on profit margins rather than guesswork.
- Focus on selling the most profitable items.
- Prevent losses by taking timely markdowns on products.
- Identify profitable product lines and discontinue money-losing ones.
- Detect theft issues before they escalate.
- Avoid duplicate bill payments.
- Take advantage of vendor discounts by paying on time.
- Plan payment schedules to minimize borrowing.
- Maintain a strong credit rating.
- Secure better credit terms with a good payment history.
- Accurately track payroll and sales tax obligations.
- Avoid late filing fees by making timely government payments.
- Prevent writing bad checks by staying in the green.
- Eliminate NSF fees.
- Ensure all cash receipts are credited to your account.
- Identify excess cash to put it to work.
- Track expenses in detail to identify areas for cost-cutting.
- Stay within budget limits.
- Maximize tax deductions for business expenses.
Gain Financial Clarity and Control
With a professional bookkeeper, you’ll know your monthly profit and business worth, enabling you to:
- Determine the right time to expand or hold back.
- Plan taxes accurately.
- Save significantly on year-end tax returns.
- Meet business loan reporting requirements.
- Respond promptly to financial information requests from suppliers or customers.
- Calculate manufacturing or assembly costs to set profitable selling prices.
- Track job or project costs to identify profitable ventures.
- Ensure timely payments for completed jobs.
- Avoid working on projects with delayed progress payments.
Choosing the Right Financial Advisor
Selecting the right financial advisor is crucial for your business’s success. To help you make an informed decision, we’ve created a FREE Guide for Choosing Your First Accountant or Bookkeeper. This guide outlines the differences between the two roles, provides interview tips, and suggests key questions to ask.
By hiring a bookkeeper and choosing the right financial advisor, you can focus on growing your business while ensuring financial stability and compliance. Don’t wait—take control of your finances today!
