Bookkeeping for Small Business! Why you should hire a bookkeeper.

small business tax nigeria

Most small businesses owners lack proper bookkeeping activities in business. One of the most important financial decision a small business can make is to decide how the business financial books are going to kept and managed. You can either decide to do this yourself using an online accounting software that is easy to use or outsource the whole process to a bookkeeper who makes sure your books are well kept.

A bookkeeper job is to help with keeping track of day to day business transactions. The role of a bookkeeper in a small business is more encompassing. They also keep track of sales, purchases, payments, and receipts, work on the design maintenance and review of internal business processes, collate and record financial data on a day-to-day basis and store this information in a standard way so that accountants can also access it.

In this post, we’ll look at what a bookkeeper can do for your business, and when you should start to consider hiring one for your business.

DIFFERENCE BETWEEN BOOKKEEPERS AND ACCOUNTANTS.

Although the terms “bookkeeper” and “accountant” are often used interchangeably, these two professions contribute differently to businesses.

  • Bookkeepers do the day-to-day work and bring the accounts up to a high standard of detail and accuracy. They can also advise you on issues that might affect you in the near future, such as cash flow problems or late invoice payment.
  • Accountants will look at the accounts that have been created, often on a quarterly basis. They will make any minor adjustments required. They will use the information in the accounts to file tax returns and other official reports. They will also provide high-level business advisory services.

Also Read: How to manage Cash Flow for SME’s and Startups – Tips & Solutions.

WHY YOU SHOULD HIRE A BOOKKEEPER.

Do you really need to hire a bookkeeper for your business? Not really. A lot of businesses can run and thrive without one. So, why should you hire a bookkeeper in Nigeria?

1. Understanding Your Numbers.

You should have a good sense of your P&L (Profit & Loss) and other numbers (especially if you’re doing your own books!). But a bookkeeper can help to clarify anything that is confusing about your figures and identify the cause of irregularities in your financials.

2. Tax filing without a headache.

No small business owner enjoys this unavoidable task and legal obligation. A bookkeeper will not only give you the numbers, he or she will also fill in the forms, do the filing, and manage your tax fund. No more sleepless nights computing and filling out forms and scrambling for the deadline.

3. Saves you time to focus on other vital business activities.

As a small business owner, your most valuable asset is your time. The time you would rather use to plan, direct, and innovate or spend on things you love doing. Bookkeeping is too methodical, repetitive and can be boring for someone who loves running a business rather than recording it.

4. Helps you do invoicing more effectively.

Getting your books in pristine shape means you’ll be able to invoice more effectively and quickly. Whether your bookkeeper does invoicing manually or sets up an automated system for you, you’ll be cutting down on the length of your invoicing cycle and getting paid faster.

Also Read: Small Business Owners! How Are You Managing Your Finances?

5. Handy financial adviser.

How much of the earning should be used to pay off debt? Can you afford to open another branch? These are common business decisions entrepreneurs have to deal with. Not all bookkeepers in Brisbane are finance experts. But, with the business training and exposure they have, they can give you valuable business and financial insights.

CONCLUSION

Clearly, there are more benefits hiring a bookkeeper can do to your business than the doubts you have about having one. Make sure that you get the best out of your business by hiring a bookkeeper to help you along your journey.

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