As a freelancer, you’ve discovered working in your business and working on your business are two different things. Working in your business is when you’re using your talents to provide a product or service. Working on your business, though, includes the sometimes-dreaded task of bookkeeping. It’s one of those things needed to keep a business going but probably isn’t your specialty.
Because many business owners find bookkeeping to be cumbersome, they consider outsourcing it. Deciding when to outsource this task is not always apparent, but the considerations below will help with your decision.
Does Having a Shoebox of Receipts Count as Bookkeeping?
Short answer – yes. But there’s more to bookkeeping than storing transaction receipts. This is only part of the process. Bookkeeping entails both keeping documentation and recording the associated transactions.
The key is that each transaction is added to an overall ledger, which allows for further analysis and decision-making. This is where it can be easier to pay an external bookkeeper rather than trying to perform this chore yourself.
Do You Know if Your Business is Earning a Profit?
You may already be performing basic bookkeeping in that you are recording your business transactions, but do you perform any analyses on these transactions? Despite wanting to earn a profit, if you don’t analyze your transactions within the proper groupings (i.e. revenue, expenses, etc.), then you may not be able to determine if your business is earning a profit.
This is where outsourcing your bookkeeping can help. An external bookkeeper can prepare basic accounting reports that tell you about the financial health of your business.
Did You Get a Tax “Surprise”?
Many business owners fall into one of two categories when it comes to taxes.
1) They have no idea what their anticipated tax liability will be at year-end.
2) Or, they have been sending in estimated tax payments each quarter but still don’t know if they’ll owe more when the year is over.
Tackling taxes can be challenging for non-accounting types, and this presents a prime opportunity for outsourcing your bookkeeping. You don’t want to be surprised with a high tax bill, and one of the best ways to prevent this is to have help in your corner.
If You’re Ready to Outsource Bookkeeping, Morgan & Associates are Ready to Help.
No matter if you’re a freelancer with a big box of receipts or doing basic bookkeeping tasks yourself, you’ve probably considered outsourcing this chore. If you are looking for help with your business bookkeeping, we at Morgan & Associates are ready. We have the experience you need and can take bookkeeping off your to-do list.