How to Address 4 Bookkeeping Challenges of Small Businesses
Many clients look to their accountant for business direction and advice, as well as just crunching the numbers. Startup and small business owners face lots of challenges on a daily basis, and accounting related tasks are some of the main ones that most struggle with. We explore four of the most common bookkeeping challenges that small businesses face that you have the ability to offer solutions to. Take these tasks off your client’s plate and let them focus on what they do best – whether that’s manufacturing, merchandising or offering a service.
How to Address 4 Bookkeeping Challenges of Small Businesses
Problem #1 - Cashflow
Cash flow is the lifeblood of any small business. From keeping track of sales and purchases to receivables and payables, cash flow is a critical issue for a business. Anybody can put fuel in the car, but it takes a good mechanic to get it started. As a business owner, you have to get your finances up and running. This will allow you to make the most out of your business.
Solution:
Bookkeeping can be complicated, but having a good system in place is essential to start building a profitable business. Working with a reliable accounting firm can get you up and running in no time.
Problem #2 - Having irregular financial reports
Just like you need a good mechanic to keep your business running, you need someone to handle your books. A good bookkeeper is the backbone of your business, making sure everything is in order and setting up a good financial environment for your business. A good bookkeeper should be someone who understands your business and knows the ins and outs of each report you need. A constant flow of information is absolutely essential to ensure that the finances in your business are in good standing.
Solution:
Having your bookkeeping done by an independent CPA firm will enable you to have financial reports on a regular basis. This is crucial, especially as you grow your business and need an outside opinion on your numbers.
Problem #3 - Payroll management
Not everyone reaches adulthood knowing how to add payroll. From maximising your deductions to negotiating with the taxman, the administration of payroll is a complex task, especially if you’re a small business. Keeping track of your workers’ hours, a roster, evaluations, and performance reports can be a major issue.
Solution:
Having a good bookkeeping system in place will remove the burden of putting a payroll together. A good bookkeeper can take that off your plate and ensure that you have accurate, up-to-date information.
Problem #4 - Inability to track expenses
Losing track of your expenses can be a headache. Where did all of your money go? With all the moving parts involved in running a business, it can be easy to lose track of your expenses. Whether it’s attending conferences, staying at a hotel or putting gas in the car, tracking your expenses is crucial.
Solution:
Having a good bookkeeper ensure that you have access to your accounts on a regular basis is critical. A good bookkeeper will ensure that you have all the information you need and can provide assistance as you need it.
Conclusion
Doing your own books is a time consuming, arduous task that requires a high level of skill and knowledge and is often something better left to the professionals.
If you’re looking for professional accounting services that can handle your finances, talk to 1 to 1 Accountants today. We are an accountancy firm based in the UK that primarily serves small businesses and freelancers. Contact us today!
