7 Benefits of Bookkeeping Services for Small Business

Dec. 10, 2021

No matter what type of small business you have, bookkeeping is essential for your development and financial growth. Whether you choose to outsource bookkeeping services, hire a full-time bookkeeper, or use bookkeeping software, it will be the right move for your organization.

However, hiring a virtual bookkeeping service, like Swyft Books, might be an even better fit for your needs.

In this article, we’ll discuss some of the benefits of bookkeeping services for small businesses and why you should take them into consideration.

Benefits of Bookkeeping Services for Small Business

Bookkeeping is a tedious part of running a business. While you can complete all your bookkeeping tasks on your own, hiring a virtual bookkeeping service would make your job a lot easier. This is especially important if you’re not familiar with the world of finance, loss statements, invoices, and similar financial documents.

Here are seven benefits of bookkeeping services for small businesses:

1. It’s an Investment in Your Small Business

As your small business continues to grow, you’ll only be swamped with more paperwork and financial documents. If you take on more employees, you’ll also have to deal with payrolls and taxes. All this workload can be overwhelming, especially if you’re not good with numbers.

Even though you have to set aside money for a bookkeeping service, look at it as an investment in your small business. Bookkeeping will help your business grow in the long run by allowing you to improve in different areas.

2. You’ll Be Aware of Your Financial Situation

One of the most important goals of bookkeeping is monitoring financial transactions and various business expenses. Not only is it a bookkeeper’s job to track these costs, but they also record every financial document and receipt. All this financial paperwork is stored and organized in a general ledger.

Bookkeepers also write financial reports on a weekly, monthly, and yearly basis. These reports will let you know if your small business is thriving, or if there are some areas that need to be improved. What’s more, you’ll be able to see exactly what your small business spends money on.

Financial statements, such as cash flow statements, balance sheets, profit statements, and loss statements, will give you a greater understanding of your business expenses and revenue. Once you have insight into your business’s financial situation, you can also make a decision on budget cuts.

3. It Will Help You Focus on Your Work

Organization and time management are two essential aspects of running a business. As a small business owner, you already have your fair share of work. Between managing your business and your employees, as well as making sure everything is in order, your time is precious. 

Hiring a bookkeeping service will let you focus on your daily tasks. It will also improve your efficiency and performance, since you won’t have to worry about business expenses. Not only does hiring a bookkeeping service save you time, but it also minimizes paperwork. You’ll be better prepared for potential issues that lay ahead. In addition, you’ll be able to give your full attention to more significant matters.

4. You’ll Get Professional Financial Advice

As mentioned before, bookkeepers monitor and make reports on each penny that goes in and out of the company. Keeping this in mind, they’ll be able to offer advice on what you should and shouldn’t do in the future.

For example, if your small business needs to take out a loan, your bookkeeper will help you prepare the papers. You’ll also be advised on budget cuts, as well as which areas of your small business you need to invest more money in.

Usually, an in-house accountant provides financial advice, but if you hire a bookkeeping service like Swyft Books, this part will be covered as well. What’s more, you won’t have to provide all your financial records or receipts, since Swyft Books downloads your information through online banking.

Another aspect to consider is the bookkeeping software that most companies use. Not only will you gain access to some of the most high-tech bookkeeping programs, but you’ll also have someone who will know how to use it to your advantage. In other words, you won’t be required to be a bookkeeping expert to understand how the software works.

5. It’s a Smart Business Decision

Hiring a full-time bookkeeper is more expensive than hiring a bookkeeping service in the long run. How? Apart from the salary, you also have to consider the employee’s training costs, insurance, recruiting expenses, benefits, as well as operating or facility expenses that are bound to increase.

Therefore, hiring a virtual bookkeeping service is a more affordable decision. To put it in perspective, outsourcing a bookkeeping service costs around $6,600 a year on average. Full-time bookkeepers, on the other hand, would cost you $26,790 a year, if you take into account all expenses.

The money you’ve saved from outsourcing a bookkeeping service could be invested elsewhere. Expanding your small business, hiring more employees, or purchasing better equipment are all possible with the money you save.

6. You Won’t Have to Worry About Tax Season Anymore

Tax season is one of the most stressful times of the year. There’s loads of paperwork to go through, and if you accidentally skip one form, you’ll need to do it all over again. If you don’t pay your taxes in a timely manner, the IRS will pick up on that very quickly. This could lead to fines, audits, even investigations.

Bookkeepers help you prepare your tax returns. If there are any potential tax deductions, they’ll be able to take advantage of that, and save you even more money.

Not to mention that if you do the bookkeeping tasks on your own, you’ll have to be informed about any changes made in taxation laws, as well as updated tax codes. If you hire a bookkeeping service, you won’t have to worry about these matters. Bookkeeping software is regularly updated.

7. It Will Help You Prepare for the Future

Outsourcing professional bookkeepers or a bookkeeping service will help your small business in the long-term. By analyzing financial reports and keeping track of business expenses, bookkeepers will know exactly what you spend your money on. Once they come up with a financial plan, they’ll let you know exactly what areas of your business need to be improved.

By constantly staying on top of things and closely monitoring revenues and expenditures, your small business will slowly start to grow.

Help Yourself and Your Small Business

There are several benefits of bookkeeping services for small businesses. Although you have to set aside money for a bookkeeper, it will definitely pay off in the future.

If you hire Swyft Books, you’ll get a chance to work with professional bookkeepers through a secure network. With a free trial, you can make sure that it’s the best decision you ever make for your small business.