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Do you need to hire an accountant and bookkeeping service?

Many of our clients  ask us the same inquiry when researching if they should hire a accountant and bookkeeping service. Here are a few of the most important reasons why you should have a professional person managing your fiscal record keeping

#1 Reason for Letting a professional handle your Bookkeeping Services: Monitor the Fiscal Success or Failure of Your Business#1 Reason for letting a professional handle your fiscal record keeping: It allows you to track the financial success and failure of your company. It’s difficult to recognize where you are going if you don’t know where you’ve been. The same is true with your businessorganizationcompany – it’s hard to know how your business is doing without a clear fiscal . A good fiscal organization provides  to the questions: Am I making money? Are sales increasing? How do expenditures compare to sales?

#2 Reason for Letting a professional handle your Bookkeeping Services: furnishes the Information You Need to Make Assessing fiscal consequences should be part of every company decision. Without exact records and financial information, it’s problematic to calculate the impact of any given course of action. For instance, financial information gives insight as to whether or not it pays to hire another sales rep. Precise records reveal the profitability of any line item.

#3 Reason for Letting a professional handle your Bookkeeping Services: Acquire Bank Financing. The best time to seek financing is when you don’t need it. The bank will want to see your income statement, balance sheet and tax returns for the most current and prior years, as well as projected statements showing the impact of the requested loan.

#4 Reason for Letting a professional handle your Bookkeeping Services: Obtain Other Sources of Capital If your organization has reached the level where you need to take in a partner or investor, any prospective associate will want to become intimately familiar with your financial picture. Suppliers and other creditors may also ask for certain financial reports. The source of this information is based on your day-to-day record keeping.

#5 Reason for Letting a professional handle your Bookkeeping Services: Prepare a Budget. All businesses should use budgets for planning purposes. Budgets keep organizations on track by predicting cash needs and controlling expenditures. When companies seek financing, bankers or prospective investors look for budgets as evidence of planning and stability.

#6 Reason for letting a professional handle your Bookkeeping Services: Prepare Your Income Tax Return  No matter what your business entity, you must file an income tax return and pay income taxes. With good records, preparing an accurate tax return will be easier and filing will more likely be done on time. Poor record keeping even in Quickbooks may result in underpayment or overpayment of your taxes. If your accountant or cpa prepares your tax return, poor records could result in higher accounting costs.

#7 Reason for Letting a professional handle your Bookkeeping Services: Comply with Federal and State Payroll Tax Rules. If you have employees, you are aware of the myriad of rules and regulations concerning to payroll taxes. Payroll tax must be deposited according to strict deadlines. Late payments of payroll taxes result in severe penalties, including jail time!Payroll tax returns must be filed quarterly, and must reconcile with payroll deposits made during the quarter. At year end, you’re required to give employees and the government W-2 forms, which must agree with your quarterly payroll returns. Sound bookkeeping practices, even if you use a payroll processor, will make compliance with payroll rules easy. Poor records will make it impossible.

#8 Reason for Letting a professional handle your Bookkeeping Services: Submit Sales Taxes. If you collect sales tax, good records make it easy for you to compute the tax due and prepare the necessary reports. Sales tax must be deposited corresponding to strict deadlines. Late payment of sales taxes can result in severe and unnecessary penalties and interest.

#9 Reason for Letting a professional handle your Bookkeeping Services: Distribute Profits If your business is a partnership, you will need good records to determine the correct amount of profits to distribute to each partner. If you’re operating as a corporation, profits that you’ll be paying out as dividends to the shareholders must be determined.

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• Small Business Owners – Factoring Can Help Your Finances (dohertyassoc.com)
• Factoring as Opposed to Pledging Accounts Receivable (dohertyassoc.com)

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