7 Ways Your Bookkeeping Is Taking Over Your Life

I have owned & operated my bookkeeping firm, with my business partner, for 18 years and let me tell you that we have seen it all. We have seen business owners go to court, lose their businesses and even their homes. We have been by our client’s side as they sit with government auditors as their books and records get audited.

From everything I have seen, I believe that it is imperative for every business owner to have a bookkeeper on their team and here are 7 reasons why…

1) MISSED SALES OPPORTUNITIES

Business owners who run their own books have many missed sales opportunities because they are spending so much time working their numbers instead of getting out there and promoting their business. If a business owner took time to look at the endless hours spent on your paperwork and balancing your accounts and multiply the hours by what they feel their time is worth, they would receive a huge shock.

For example, if an owner calculates that they can make a sale in an hour and that sale is worth $100, they will conclude that their time is worth $100 per hour. So if they spent 10 hours a month on their bookkeeping then they just lost $1,000 in potential sales for the month! Did you catch that? $1,000 per month, multiply that by 12 months and we’re talking $12,000 in sales!

When you have a Bookkeeper helping you to the books, you have a professional who knows all the ins and outs of the bookkeeping process. To name just a few: all the details on write-offs, business expenses and their allocations, balancing all the accounts correctly, tracking taxes properly & understanding how the Financial Statements come together.

Having a Bookkeeper on your team is also is very efficient when it comes to time spent on the account. On the example above, if a business owner hired a Bookkeeper to process all the transactions, it would save the owner 10 hours a month on non-money-making projects and the company will benefit from the bookkeeping fees as the fees are a 100% write off.

2) SLEEP DEPRIVATION

When was the last time you laid your head down on your pillow and didn’t think or stress about your finances and got a great night’s sleep? Having a Bookkeeper on your team is a great cure for that! I have heard so many business owners say that they have so many stressful, restless nights due to thinking about their finances while trying to fall asleep. And, at times they work all day in their business and then work all hours of the night trying to complete their bookkeeping.

When you are up all hours of the night trying to piece the finances together not only are you depriving yourself of the rest you need, you are also making serious mistakes on your books because you are tired! When you know that you have a Bookkeeper taking care of all your financial needs you will rest with ease and get the peaceful sleep that you so deserve! When you are fully rested you can invest more of yourself into your business and into your loved ones.

3) NO FREE TIME

Without support and a plan, tackling your bookkeeping alone will come at a cost. The cost is your free time. Let’s face it if you are spending your business hours working in your business, doing business & servicing your clients, then you are spending your personal time trying to figure out what to do with all those receipts, figuring out your finances and trying to make sense of all those expenses.

Which means, that you are spending your personal time frustrated and stressed, instead of enjoying your time with your friends, family and on the things you love. And because of this, you tend to throw all your invoices and receipts into a box or a drawer, where they will sit until you have to work with them because it is now 2 weeks before the tax deadline.

With a Bookkeeper on your team to support you, you will spend less time on your bookkeeping tasks as the Bookkeeper can help you to organize your system, your receipts and can support you in the data processing.

4) CASH FLOW

Ever wonder where your money is going? Wonder why it seems that you have revenue but less cash in the bank? A Bookkeeper can provide Cash Flow Statements showing where your money is going and why. This also answers those though questions such as: Am I spending too much & if so, where? Am I spending too little? Where should I be spending my money to grow my business? It will also answer revenue questions like: Am I charging enough for my services? What is my total Cost of Goods Sold? Are my percentages too high?

Whatever the questions are regarding “the money situation” a Bookkeeper on your team can help you answer these!

5) GOVERNMENT INTERFERENCE

If I asked a room full of business owners to raise their hand if they want the Government on their backs, in their paperwork, making them nervous and looking for errors, how many would raise their hand? Correct, NONE! And I am sure that you are in the same thought. You see when a business owner takes care of their own books they are making mistakes that could come back to haunt you 6 years from now. That is right, 6 YEARS!! There are rules and regulations that the Government has set in place that business owners don’t necessarily know about however a Bookkeeper does.

         

If you were to hire a Bookkeeper, they would also complete your HST/GST & Payroll taxes. This process can become a huge headache when you are a day from the deadline and you have piles of paperwork to go through. And the best part, your Bookkeeper can also deal with the Government on your behalf! So if or when the Government calls, you can direct them to discuss the matters with your Bookkeeper. Your Bookkeeper will take the matters into their own hands and will discuss any issues and resolutions with you. This prevents the Government from coming in and breathing down your neck because you said something that you shouldn’t have or made errors in your bookkeeping.

6) MISSED WRITE OFFS = PAYING MORE TAXES

Do you know what the Government regulates in regard to write-offs/business expenses?

Are you guessing or going by something someone else has told you? If so, chances are that you are in the dark about these amazing little creatures! Write-Offs are a business owner’s best friend. There are so many available write-offs and you are probably spending money that you have never thought about writing off.

Do you know the percentages of what’s allowed within each write-off? Probably not! This is another reason why it is so important to have a Bookkeeper on your team. A Bookkeeper can teach you what you are allowed and what you are not allowed. The best part is that your Bookkeeper will probably find missed write-offs within your books and will share with you other write-offs that you are missing and how to incorporate these into your company.

Here is a secret, the more write-offs you have, the less tax you pay into the Government! The fees that a Bookkeeper charges are a 100% allowable write-off. So why pay the extra money into the government when you can write off the fees that you pay to a Bookkeeper who helps you balance your books and discovers more ways to incorporate the write-offs.

7) ACCESSIVE ACCOUNTANT FEES

If you are completing your own bookkeeping, chances are that you Accountant fees for filing your tax return are a lot higher then they need to be. When you take all your information in the form of receipts for your Accountant to work through and file your return you are paying the Accountant approximately $150 to $300 per hour!! Yes! Per hour!

I have seen Accountants fees drop by as much as 60% when a Bookkeeper has completed all the work and then the business only needs to supply the Financial Statements for the Accountant to file the tax return. This also makes the Accountant very happy and they will be more willing to work with the business owner in other aspects as an Accountant enjoys working with Business Owners who have their priorities in order. A Bookkeeper makes the relationship between Business Owner and Accountant stronger!

By now you are probably thinking ‘this all makes sense Sara, but I can’t afford a good Bookkeeper, probably any Bookkeeper for that matter. So, what do I do?’ I totally get you and feel your frustration with this. I get asked this question all the time, so I wrote 5 Tips for Doing Your Own Bookkeeping to help those who cannot afford a Bookkeeper.

Check out this short video series:

8 Videos To Help You To Save Time, Money & Stress On Your Bookkeeping Journey

These videos will give you a good foundation for your bookkeeping and will answer a few of the most frequently asked questions.

If you are needing the support of a seasoned Bookkeeper, one you could have in your back pocket. Someone you can learn from, ask any and every question you may have and help guide you in creating a system for your bookkeeping and paperwork, visit The Bookkeeping Boutique for the right products and services to support you!

~ XO Sara L. Clarke

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