3 Reasons Why Bookkeeping is Important to Your Business

Who keeps track of all of the numbers in your organization? Is the work split between multiple people? Do you have to squeeze time into your schedule to record sales and process payroll each week between filling orders? Accurately recording your financial information and keeping track of paperwork deserve more detailed attention than many small business owners can give.

 

Bookkeeping is about more than just helping you to stay organized. This service can help your business reach its full potential. By analyzing your data and helping to identify efficiencies and ways to save or increase profit, it is even likely to save you money in the end. Below are a few examples of why bookkeeping is important to your business.

 

Bookkeeping is Important to Your Business

 

Keep track of your financial transactions. 

Keeping an accurate record of all of your financial transactions is essential to maintaining your business. How much did you earn on your last project? How much did you spend on office supplies the previous month?

 

It can be highly time-consuming to record all transactions. From purchasing business cards, business lunches, or documenting the latest check you deposited, transactions are a daily occurrence. Having detailed records will help you ensure that you don’t have any unexpected expenses and receive all of your payments on time. These records will also make tax preparation time much more manageable. Hiring a professional bookkeeper will save you time and give you the peace of mind to know that your information is in order. Additionally, professionals can help you identify places where you spend too much money, places you can save, and even opportunities to earn extra income. 

 

Improve your cash flow

Your financial well-being has to do with so much more than the amount your company earns each quarter. Cash flow is one of the greatest struggles for small and medium-sized business owners. Bookkeeping can help you navigate this by paying close attention to what cash you have coming in and what cash you have going out. A bookkeeper will keep a schedule of these accounts and work with you to make sure you have enough money on hand for all expenses. This knowledge will also allow you to adjust a planned purchase or take action in other ways if needed. Make financial decisions with the confidence of knowing you will not default on a payment. 

 

Protect Your Business in the case of an IRS audit 

When it comes time to file your taxes, you will already be in a good position if you’ve hired a bookkeeper. They will have kept track of your transactions and helped you prepare your filing. If you owe past due money, are receiving confusing correspondence from the IRS, or if your return is selected for an audit, a bookkeeper will be able to assist you before the IRS for the Franchise Tax Board. Bookkeepers specialize in Collection and Appeals representation and will protect your business during an audit. Bookkeepers specialize in Collection and Appeals representation and will protect your business during an audit.  

 

Above are just a few reasons why bookkeeping is important to your business. Take the burden of all of the paperwork off of your plate and know that you are fiscally sound. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website

 

Are Bookkeeping Fees Tax Deductible?

As a business owner, expenses can add up. From ads to employee salaries and storefront improvements, companies are always in need of finding ways to save anywhere they can. On the surface, it might seem that an excellent way to save money would be to take on every task on your own. Contracting out services that your business needs costs money, and avoiding that cost seems like an obvious choice. But at the end of the day, bookkeeping services can help you save in the long run, and not only that, but the expenses can be tax-deductible. So, are bookkeeping fees tax deductible? Below are a few examples of Bookkeeping services that may qualify for tax credits. 

 

Are Bookkeeping Fees Tax Deductible

 

Tax Preparation

Most businesses can write off fees they pay for tax preparation. These fees are seen as “ordinary and necessary” and can save you and your company a substantial amount of money. Hiring a professional to complete your business tax preparations is essential to your success. An expert can make sure you file every document correctly and don’t miss any deductibles. This knowledge could significantly reduce the amount of money you owe or substantially increase the refund owed to you. Additionally, professionals can make sure that you don’t make any errors when filing to avoid any issues with the IRS. If you are audited, your bookkeeper will be your representative and help you through the process. 

 

Payroll Services 

Many professional expenses are deductible for businesses. Hiring someone to manage your payroll services will save you a headache. Knowing that your staff is getting their paychecks on time and for the correct amount each cycle will give everyone involved peace of mind. Getting a deduction for hiring bookkeepers to manage your payroll isn’t the only benefit of this arrangement. There are complicated payroll taxes that your business needs to pay. Your bookkeeper will make sure that the appropriate amount is withheld each pay cycle. This level of detail could save you from a costly mistake and help you plan your budget accordingly. 

 

Bookkeeping

Like tax preparation and payroll services, bookkeeping can also be considered an “ordinary and necessary” service for your business and, therefore, eligible for a write-off. Bookkeeping is the backbone of any company that keeps the gears running smoothly. Hiring professionals is a great way to make sure that you are organized and efficient. Bookkeeping services include keeping track of your cash flow, managing invoices, and keeping track of accounts receivable. Services also include creating and managing Excel spreadsheets to track things like inventory and budgets. 

 

All in all, the services provided by a place like PL Bookkeeping Plus can help your company reach the next level, take a tremendous amount of work off of your plate, and can save you money. Knowing that these services can be tax deductible can help give you the room in your budget to outsource these tasks. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website.

 

When To Outsource Bookkeeping

 

As a business owner, there is a good chance you wear many hats. Customer service, front of house, inventory fulfillment, payroll, human resources, manager, and marketer are likely just some of the many roles you play.

 

As your business grows, the more involved each of these job titles becomes. The more employees you have, the longer payroll takes, the more orders you receive, the more labor inventory fulfillment requires. The truth is, while you may be a superhero, one person can not be a million things at all times. There may be times where one task needs your attention, and it can be hard to keep all the balls in the air. It would be a shame if your marketing efforts were to suffer because you needed to spend too much time invoicing. This imbalance is when to outsource your bookkeeping. Below are some signs that might show you ready to hire specific tasks out:

 

When To Outsource Bookkeeping

 

You want your business to grow but can’t keep up with the workload. 

Chances are, you would like your business to continue growing. To grow your business, you will need more hands-on deck. Trying to be a Jack or Jill of all trades will be unsustainable as demand for your product or service is rising. As a business, your reputation and word of mouth are everything. Suppose the quality of your management skills or customer service were to suffer as a result. That could cost you and be hard to recover from. 

 

Additionally, burnout is real. By working around the clock and putting too much pressure on yourself and your existing employees, you could do real damage and even push away good people. It’s also important to remember to take care of yourself for your health, family, and the long-term success of your company. If you have plans to grow or are starting to feel a strain keeping up with your tasks, it may be a sign that it’s time to outsource your bookkeeping. Don’t wait until things start slipping through the cracks to get help. Build your infrastructure before things get out of hand when possible to make sure your growth is sustainable and prosperous. 

 

You want to spend more time focusing on your product or service.

Do you feel like you are spending so much time chasing after invoices and filing paperwork that you don’t have time to spend on the actual business side of things? Getting tied up with the minutiae is a clear sign that it might be time to outsource your bookkeeping. Let the professionals take over your payroll, tax prep, and accounts payable so that you can focus on the reason you started your own business in the first place.  

 

You would like to be more financially efficient but don’t know-how. 

One of the best things about outsourcing your bookkeeping to professionals is that they are financial experts. Bookkeepers take a tremendous amount of work off your plate and find ways to help your company save money by identifying efficiencies and ensuring you receive all of the tax credits you are eligible for. Additionally, bookkeepers can take charge of your accounts receivable to make sure you never miss another invoice payment again. They can also help you strategize about the best way to increase profit and grow your business from the book’s side. 

 

These are just a few signs that let you know when to outsource bookkeeping may be suitable for your and your company. Consider booking an appointment with PL Bookkeeping Plus to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website. 

 

The Benefits of Working With PL Bookkeeping Plus 

Running your own business is a gratifying endeavor, but it also comes with many responsibilities. Having the ability to multi-task is critical because your staff needs to wear many hats. From sales and product management to marketing, there is a lot to keep track of at all times. As a result, many businesses look to several third-party companies to help them manage tasks like bookkeeping, accounting, and business forecasting. The great news about working with PL Consulting is that we are an all-in-one firm that can handle your small to midsize business’ payroll, financial planning, accounting, bookkeeping, and more— all in one place. Below is a list outlining the many ways PL Consulting can help support your business.  

Payroll Services

How much time do you spend each month processing and organizing payroll? This part of the job can be an incredibly time-consuming process and can eat up an entire day’s worth of work. Our Payroll services include tracking vacation and sick leave, issuing checks and direct deposits, generating the appropriate tax-related information, and creating a system where your employees can check their payment information online. Wouldn’t it be great to take all of this off your plate so that you can focus on your business? 

Tax and Accounting Services

Keeping track of all of your financials and filling out taxes as a business can be a very overwhelming task. Not only is it a great deal of work, but it can be challenging to understand how to fill out your tax information accurately. Plus, you want to make sure you are correctly writing off your business expenses. Hiring an accountant can put your mind at ease and make sure you get the most out of your tax filing each year. PL Bookkeeping Plus offers a wide variety of tax and accounting services that include tax planning to help you be strategic about minimizing expenses, tax return preparation, and representation before the IRS when needed. Get peace of mind knowing seasoned specialized professionals are handling this aspect of your business for you. 

Clean-Up Process

PL Bookkeeping Plus can work with your business to develop a long-term strategy, discover ways to increase revenue, and get organized. First, we conduct a thorough assessment and identify what needs to happen. Then we provide you with a plan recommendation and the timeline for each step that our team will work around the clock to help you execute. This service can help you feel confident in growing your business, knowing that there is a plan in place and that you have all the right tools. 

Accounts Payable and Receivable

Leave the paperwork to us. From generating invoices and processing credit information and collections, let this be one less thing you have to worry about. Make sure you never miss a payment from a client again.

Bookkeeping Services 

Bookkeeping is the glue that holds it all together. We can help you ensure that your business can maintain the proper cash flow throughout the month, document and record all expenses and revenue, and use Quickbooks as a powerful tool to help determine valuable insights for your business, to name a few. 

Deciding to outsource your business’s heavy and complex administrative workload can be a huge relief. We’d venture to guess that the reason you wanted to start your own business was not to process invoices all day. Hiring multiple firms and companies to help you with these tasks could be complicated and time-consuming in its own right. PL Bookkeeping Plus offers the unique benefit of being an all-inclusive company, so you can rely on one place to take care of all of your accounting and bookkeeping needs. We believe in customizing your experience with specialized and professional services while also offering future planning and productivity support. Consider booking an appointment to learn about ways in which we might be able to help you and your business by calling 410.764.3731, emailing us at info@plcfo.com, or filling out a form on our website.