An often-overlooked aspect of establishing and growing a business is bookkeeping. The financial side of running a business can be tricky like no other is– here come the bookkeepers as a rescuer to help you manage your juggling financial activities. Bookkeepers help business owners succeed by managing the bookkeeping requirements of the business so that owners can focus on what they do best. Bookkeeping can be an excellent strategy for small business owners to optimize the level of how far their money can go.
Your business might be at any stage, development or growth, at times keeping track of all the financial activities of the business gets complex and time-consuming. Mismanagement of your financial records leads to financial instability during slow stretches and even in periods of growth. When the bookkeeping requirements of your small business are too complicated and time-consuming to handle by yourself, it’s time to hire help. Bookkeepers do more than just record payables and receivables, they guarantee the security, power, and success of your business.
Here are some of the tasks a bookkeeper in Mississauga performs to help you keep your business running smoothly:
- Be watchful of business cash flow. It is one of the most crucial tasks of a bookkeeper to make sure that the company doesn’t run out of money. Regular watch of cash flow enables the bookkeepers to timely inform and offer advice to the management if it looks like the business needs more ready cash.
- Month-end reconciliations of accounts. It’s a bookkeeper’s job to prepare and reconcile books of accounts. Having reconciled accounts means that business financials are valid and up to date and you (or your accountant) can begin to analyze them.
- Can help you save taxes and avoid surprise tax bills: Tax season is stressful! Mississauga’s bookkeepers keep all the records organized so that filing taxes is a breeze. They will help you to claim the rightful deductions, avoid having inadequate records, and help avoid audit expenses. Solid bookkeeping will enable you to find out your tax details in two mouse-clicks. It will save you from missing stringent tax deadlines and paying penalties.
- Provide better analysis of your business: You definitely want to keep track of how your business is performing, a bookkeeper in Mississauga can help you by preparing reports. Bookkeepers prepare reports such as accounts payable (A/P), accounts receivable (A/R), cash summary, simplified profit, and loss statement, etc. These reports are often used by the business owner as checkpoints to see where the business is heading.
- Create and issue invoices (and follow up): There is a reason for large companies to maintain accounts receivable department. Customers often require a lot of reminders to pay their invoice and the life of your business depends upon it. Bookkeepers invoice customers for sales and services and chase the outstanding invoices so that you have less pending income. Having your invoiced payments being received on time can substantially increase your business cash flow. This will alleviate complex financial situations from uncollected receipts.
- Record and pay bills within their due dates: Understanding who the business owes money to and when it is due will help decrease costs. Proper record keeping will help you track payables and save you some money by taking advantage of an early payment discount from a supplier or avoid the unnecessary expense of interest on late payments. The bookkeeper understands that cash flow management is absolutely critical to small business success.
- Process and reconcile payrolls: Some very common (and very costly) issue with late payments happens when payroll remittances are paid late. Bookkeeping services in Mississauga can save your business from big late fees by ensuring on-time payments.
- Can help you get investors: Investing in a business is highly risky, and investors demand to know in detail the financial health of the business to ensure that they are investing in something lucrative. If the books are clear and concise the prospective investors can see everything as transparently as necessary.
- Manage all the other little details: There are a lot of other little tasks a competent bookkeeper takes care of such as:
- File your worker’s compensation report and pay the bill.
- Remind you to renew your municipal business license (or do it on your behalf)
- Remind your tax consultant in Mississauga of year-end and that annual filings are to be completed.
- Follow up missing information.
- Highlighting if certain expenses are not understandable/valid or you may have been double-billed for something.
What Hiring a bookkeeper means to you?
By now, you must have understood that there is a lot that a bookkeeper can do for you. A bookkeeper will provide organized and accurate accounts to display a clear picture of the company’s finances to help business owners make strategic business decisions.
If bookkeeping is a pain point for you then let us manage your numbers and get back to doing what you love. Feel free to reach out to Filing Taxes at 416-479-8532? Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting firms and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.