Got a small business in the San Rafael or San Francisco area? If so, you may need some help with your bookkeeping.
A lot of small business owners get their start by doing everything themselves—and that includes the financial end of things. But at a certain point, your bookkeeping and accounting needs will probably outgrow what you can do yourself.
Let’s take a look at the realities. Here are 10 reasons you need to hire a bookkeeping and accounting service for your business.
#1: Because Your Time is Worth Something
How much do you charge per hour? And how long does it take you to do your taxes every month?
Let’s say you charge your San Francisco and San Rafael clients $100 per hour. If it takes you 20 hours to do your taxes, it’s costing you $2,000 to do your own—instead of doing work that pays.
This might be sustainable for you if you’ve got the time. But as your business grows, the time you spend handling your own accounting can cut into your bottom line. It can actually cost you less to hire an accountant.
#2: You’re Overworked
Being a small business owner often requires working more than 40 hours a week. You give everything to your business—but you deserve to have some “you” time as well.
When you hire an accountant, you take a hugely time-consuming task off your plate. This doesn’t just mean more time to make money. It means more time to spend with family and friends, pursue passions outside of work—maybe even take a vacation (hey, you can dream).
#3: Because Tax Time Doesn’t Have to be This Stressful
Doing your taxes can be anxiety-inducing—no matter what line of business you’re in. But it doesn’t have to be.
Imagine a world where you aren’t afraid of audits. Where you’re confident you’re getting every single deduction you’re owed. Where you know your tax return dots every i and crosses every t. And where, if you do get that dreaded letter from the IRS, you have an expert in your corner.
That’s the peace of mind you get with a professional accounting service.
#4: Because You Could Have a Better Handle On Your Business’s Financial Health
Just how well is your business performing, anyway? If you’re like a lot of small business owners in the San Francisco and San Rafael area, the only time you take stock is during tax time—and then you’re more focused on finishing your return than monitoring your company’s performance as a whole.
A bookkeeper can help you keep tabs on your expenses, revenue, and performance as the year unfolds. Understand your cash flow better. Find the market patterns that lead to income fluctuations. Pinpoint opportunities to reduce costs—and make more money.
A pro accounting and bookkeeping service can give you the financial data to make better decisions about your business—pure and simple.
#5: Because Your Current Legal Structure May Not Be the Best Fit
Many small business owners start out as sole proprietorships—because it’s the simplest option. But is that still the right decision for your business? There are benefits to different legal structures—including LLCs, C-corps, and S-corps.
A San Francisco-based bookkeeper can help you sort through all that. You can sit down and have a real conversation about the different legal structures, their drawbacks and benefits, and the legal risks you might be taking with your current structure. And maybe find a way to save a ton on your next tax bill.
#6: Because it Gives You the Capacity to Grow
It might make sense to handle your own taxes and bookkeeping while your business is just you. But what happens when you get a big contract that requires you to hire a team of freelancers or subcontractors? That can complicate your financial scenario.
Suddenly you’re sending out 1099s, handling payroll, and making sure to comply with the relevant laws. Sure, you can research and navigate all that yourself—but unless you’re an expert, that’s time-consuming and potentially risky.
Let a pro handle all the bookkeeping challenges you come across as your business grows—and suddenly anything is possible.
#7: Because Navigating International Waters Can Be Tricky
If you’re just doing business in the San Rafael or San Francisco area, you might have a handle on your taxes. But what happens if you get the opportunity to go global?
Doing business internationally can change the picture when it comes to your taxes and finances. A professional bookkeeper can help you open a foreign financial account, comply with relevant tax laws and regulations, and lay the foundation for international success.
It’s just one of the ways a professional bookkeeper makes business expansion more possible.
#8: Because Errors Can Be Costly
Are you making tax or accounting mistakes that cost you money? If you’re doing your own bookkeeping and accounting—and you’re not a pro yourself—it’s very possible.
These mistakes could be anything from missing key deductions on your tax return to picking the wrong legal structure for your business, putting too many resources into less-profitable products and services, or spending more than you need to on business necessities.
A San Rafael accounting and bookkeeping service can help you find and put a stop to costly financial errors. In this way, it’s a service that practically pays for itself.
#9: Because a Pro Has Seen Everything
As a business owner, you might feel like only you can really understand your business and handle this task. That’s really common. It’s also common to be a little embarrassed about the disorganized state your bookkeeping is in.
But trust us: we’ve seen everything—from pristine books to shoeboxes full of receipts from the past five years. No matter what shape your books are in right now, a pro bookkeeper can tame the mess.
#10: Because it Lets You Stay Focused On What You’re Good At
What was it that got you into your business in the first place? Chances are, unless you’re an accountant yourself, it wasn’t accounting.
It’s harder to focus on your passion when you have to spend hours doing things that have nothing to do with what you love. Hiring an accountant or bookkeeper frees up your time to do what you’re good at—and focus on what you care most about. That’s worth any amount of money.
In The Market For a Bookkeeper?
Schedule a free bookkeeping and accounting consultation with us today. Visit our offices in San Francisco or San Rafael, and get a full, confidential hour to explore how our accounting and bookkeeping services can help your business.