Myth #1: I only need to review my Financial Reports once a year, when I file my taxes.
The Truth: You need to be reviewing your Financial Reports monthly to make sure you’re staying profitable!
There are several reasons to review your financial reports on a monthly basis! You want to ensure you are staying on budget, to ensure you are on track to meeting your sales goal, and to see exactly where your money is going.
Other reasons include checking for Profit First” allocations, and to see if you can afford new equipment or afford hiring help/Virtual Assistants.
Myth #2: I have to be making a certain amount in sales before I need to hire a bookkeeper for my business.
The Truth: You need to pay taxes at any income, and your books need to be tax-ready no matter your profit margins!
Whether you are making $1,000 a month or $10,000 a month, you will need to file taxes. We specialize in keeping your Books “Tax Ready” all year long, meaning there is no mad dash at the end of the fiscal year.
Additionally, having a Bookkeeper on your side when you are barely starting your business can actually help you grow faster. A bookkeeper will review your financials every month including all your income & expenses and can help make price increase recommendations to make sure you are charging enough to cover expenses and still have profit leftover.
Bookkeepers can also help recommend which unnecessary expenses you can cut out so that your keep more in your pocket. They also help remind you to pay yourself! You will be amazed how many people don’t pay themselves when they are first starting out.
Myth #3: I can save money by doing my own bookkeeping.
The Truth: Some tasks are best to delegate to the professional, saving you both time and sanity!
Although most people are capable of completing their own bookkeeping, it takes knowledge, time and energy that most business owners prefer to spend elsewhere.
Additionally, if you do not stay up to date with the Taxable Deductions your business can take you may actually be losing money instead of saving money.
As professional bookkeepers, we stay up to date with tax law changes to ensure our clients are maximizing their deductions. On that same note, we make sure you take only the taxable deductions appropriate for your business as they are different for every industry. Claiming business deductions that do not apply to your business can also be very costly if you are ever audited, so delegating to us is ideal for businesses who want to avoid tax issues.