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5 Ways Outside Bookkeepers Can Help San Diego Businesses

Managing a business is hard, and there is never a shortage of things to do. Along with about fifty other tasks, one must be concerned with keeping the books up to date. This can be a struggle for a lot of reasons, but unfortunately bookkeeping is a task that simply can’t be ignored. In many cases, the best answer is to hire an outside bookkeeping firm, and that’s why we’ve put together this handy post. So, read on for 5 ways outside bookkeepers can help San Diego businesses. (Any business really, but we’re partial to San Diego, and hopefully you are too!)

Reason #1: Outside Bookkeepers Can Save You Time

Managing a business involves a long list of tasks which only grow as the business gets more successful. It’s often tempting to try to do everything yourself, but at a certain point this becomes impractical because there are only so many hours in the day. When this happens, anything that saves you time becomes valuable, and an outside bookkeeper can certainly save you time.

More often than not business owners / managers aren’t professionally trained in bookkeeping, so they’re likely not particularly fast at getting it done. Not only that, but they’re far more likely to make mistakes, and mistakes are notorious for taking a lot of time to cleanup in the world of bookkeeping. By allowing you to focus your time on things that you do well, outside bookkeepers can help you to run a far more efficient business, save time, and hopefully increase your level of success.

Reason #2: Outside Bookkeepers Can Find & Prevent Errors

While new business owners doing their own books often put in an admirable effort, the books often end up filled with errors. Unfortunately, having books filled with errors kind of negates the whole purpose of having books. If the books aren’t accurate, you’ll be paying the wrong amount in taxes (and increase the risk of an audit), get incorrect insights into your business, have erroneous financial statements, and often times be creating a mess which only gets worse with time.

Hiring an outside professional can help you to clean up the errors which have already occurred and prevent them from happening in the future, leaving you with books that actually reflect your business.

Reason #3: Outside Bookkeepers Can Help You Prepare for Tax Season

One of the big benefits of having an outside bookkeeper is experiencing a pain free tax season. With their help you can replace frantic days where you’re desperately trying to file an extension and/or desperately trying to finish the books with halcyon days that remind you of the calm summers of your youth. OK, that may be a bit of an exaggeration, but they can definitely decrease your stress and enable you to focus on your business on days where you used to be pulling out your hair and yelling at Turbo Tax. (It can’t hear you.)

Hair loss and stress notwithstanding, you may also end up with better books when they aren’t finalized in a rush. And your tax preparer will like you more as well.

Wondering when tax day is this year? Wikipedia’s tax day article should give you everything you need from now until the year 2100.

Reason #4: Outside Bookkeepers Can Walk You Through Your Financials

Not every business owner understands the intricacies of the financial statements. Not only that, but there’s a good chance they’re so busy that there isn’t much time leftover for self-education. (That having been said, anyone interested in doing a little self-educating can start with this great post introducing balance sheets.) That means that even if your books are done correctly you may not be able to plumb them for actionable insights into your business, which is one of the purposes of doing the books in the first place.

A good outside bookkeeper should be able to walk you through your income statement and balance sheet to show you how your business is doing and explain to you how to use your financials to better understand your business. (Admittedly, not all bookkeepers do this, but the best ones do – like My SD Bookkeeper, for example.)

A hand holds hundred dollar bills, symbolic of how outside bookkeepers can save businesses money.
The 5th way outside bookkeepers can help San Diego businesses is probably the most important of all. Hint: it has to do with money… Read on.

Reason #5: Outside Bookkeepers Can Save You Money

Last but not least – the most important reason of all: money.

You might be a bit surprised to hear this, but when it comes to small and medium sized businesses outside bookkeepers are regularly money savers. Why? Because unless you have a ton of bookkeeping that you need done, hiring an outside contractor is cheaper than hiring someone internally. Think about it. They won’t need a full-time salary, (or even a part time salary), won’t receive benefits, won’t drink the company coffee, don’t need office space, and won’t even eat a piece of chicken at the company holiday party. (Unless you want them to of course, and we hope you do because we love chicken.) And, if they don’t work out, you can simply end the contract rather than having to deal with all of the challenges associated with letting someone go. Put all this together and an outside bookkeeper is regularly more cost effective than bringing someone new onto your team.

So, there you have it: 5 Ways Outside Bookkeepers Can Help San Diego Businesses. We hope this helps make your business journey just a little bit easier. Who are we? We’re My SD Bookkeeper, San Diego’s premier bookkeeping and business consulting firm. We help businesses across sizes and industries with their books and would love to help you too. Reach out to us today and let’s work together to make the SD business community thrive!

Want to learn a bit more about what bookkeepers do? One of the big tasks is bank reconciliations. Check out this article to learn a bit more about what those are and how to do them.

That’s all for now. Best of luck with the business!

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