Many taxpayers wait until the very last moment to organize their financial documents in preparation of tax return filing. Not only does this leave them stressed and frustrated, it also can cause additional financial issues. Messy financial reports can lead to unnecessary tax liability because business credits and deductions were not identified in a timely manner.
According to an article in Forbes Magazine, many tax preparers recommend that businesses (and individuals, as well), hiring a year round bookkeeper. Basic bookkeeping tasks include the recording of financial transactions, tracking accounts receivable and accounts payables, and preparing monthly/quarterly/annual financial reports. Bookkeepers can also, in some cases, assist with paying bills, invoicing clients, and even payroll related tasks.
Hiring a bookkeeper year-round offers significant benefits beyond just tax season:
- Provides continuous financial management, ensuring that all transactions are recorded accurately and promptly. This ongoing attention helps businesses maintain clear financial records, which is crucial for making informed decisions throughout the year.
- Helps manage cash flow by tracking income and expenses, ensuring that bills are paid on time and that revenue is properly allocated. They can also identify trends and patterns in your finances, allowing you to make strategic adjustments to improve profitability.
- Aids in compliance, ensuring that all financial activities align with legal requirements. This reduces the risk of errors and penalties, especially during audits or tax filings. Our affiliate partners at Innovative Business Connections can assist with compliance related questions.
- Having a dedicated professional handle your finances can free up your time, allowing you to focus on growing your business rather than getting bogged down by financial details.
Ultimately, a bookkeeper is an investment in your business’s financial health, providing peace of mind and supporting your long-term success. At Credit Connections Books, our belief is that when you succeed, we succeed. Working with you to ensure that your financial documents are clean, organized and prepared when you need them is our goal. Reach out today for your FREE consultation and let us share how we can assist in reaching your financial goals.
We look forward to talking with you!
Liz Pollock, Wealth Manager/Bookkeeper
