3 Ways a Bookkeeper Can Help You Survive Tax Season
Every year, as the tax season nears its end, I get contacted by business owners who suddenly remember a very important deadline is approaching. Many business owners, especially new startups, put off finding a bookkeeper because it doesn’t feel like the most pressing issue. If you don’t need to get your bookkeeping sorted out until tax season, why worry about it now?
The fact is that this mentality ends up costing business owners in a number of ways. So whether you’re thinking about starting a business this year, or you’re constantly wondering why tax season is such a headache, here are three reasons why you should get a bookkeeper before tax season rolls around.
If your books are kept up to date throughout the year, you can know for sure that your balances are correct. There’s no guestimating your assets and liabilities. Rather than ignoring everything and then figuring it out at the end of year, you have a consistent, precise picture of the state of your company. By the time you get to the end of the year, most of the work is already done. Working with a bookkeeping service year round means that your books are always prepared.
This is also a big plus if you are looking to attract buyers of investors. Outsiders are much more likely to get involved with your company if they can clearly see what’s going on internally. Showing up with a jumbled box of receipts and bank statements is a great way to scare off potential business partners.
Even if you are keeping up with your own books throughout the year, it’s a good idea to have a professional double check them at least quarterly. In my experience it’s very rare for owners to get everything exactly right. That’s why we do what we do, so you don’t have to!
If you haven’t spoken to a bookkeeper all year and show up at your CPA’s office, you’re going to pay. A lot! As I’ve discussed in one of my older posts, a CPA is much more expensive than even a highly qualified bookkeeper. On top of that, CPAs don’t really like doing the work that bookkeepers do. They would much rather you hire a bookkeeper to ensure your records are clean and up to date before they dive in and sort out your taxes.
If you rely on a CPA to clean up your books, you’re going to be unnecessarily overpaying thousands of dollars! Keep your CPA and you bank account happy by working with a professional bookkeeper!
This is what I meant when I said waiting to come up with a bookkeeping solution will cost you in more ways than one. While the monetary cost is substantial, the amount of stress I see business owners go through to get their taxes prepared at the last minute is no small thing. The worst part is it’s almost entirely avoidable.
By working with a bookkeeper throughout the year, there is much less left to do at year end. This means fewer questions from us about missing statements and uncategorized expenses. Most importantly it means fewer surprises. Altogether that means while your competitors are scrambling, you’re more than ready for the new year!
Hopefully this has given you some insight into why I like to work with clients year round. If you’ve been thinking there must be an easier way to get through tax season, contact us today!