Many small business owners opt to keep their own books. It can keep expenses down and allows the owner to stay on top of the financial situation of the business. However, bookkeeping can sometimes be intimidating and challenging, and if that is the case, hiring an expert is the right course of action to take. An accountant in Chandler can help you with many different aspects of bookkeeping, and make sure your books stay accurate and up to date.
They Know The Jargon
Bookkeeping, like many occupations, keeps its own language. An expert knows all of the bookkeeping terms and can help you understand how they apply to your business. For example, “cash flow” refers to money coming into the company and money going out of the company. An experienced bookkeeper, knowing the jargon associated with the profession, can straighten up your books quickly without having to take time to learn terms and rules.
They Know The Appropriate Bookkeeping Method
Depending on how your small business operates, you may need single-entry bookkeeping or double-entry bookkeeping. An accountant can aide you in determining which type will work for your business. Single-entry bookkeeping is similar to keeping a personal checkbook, while double-entry bookkeeping uses two books, one for expenses and one for profits. Knowing which method will work best for you can help ensure accurate and adequate records.
They Are Very Detail-Oriented
An experienced accountant knows that accuracy is the number one priority when bookkeeping. If this is a concern of yours, hiring an expert is most likely in your best interests. Always remember to enter the exact amount of any transaction. Rounding up or down can throw off the books and make life difficult if a tax audit occurs.
They Do The Stressful Work For You
Every business, small or large, must file taxes at the end of the year. If the IRS chooses to audit your business, accurate records are needed to ensure a smooth outcome. By hiring an experienced bookkeeper, you can take all the stress of the accounting portion of your business out of the equation. You can rest easy knowing that your records are accurate and that your finances are balanced to the exact amount.