By Charlie Brown

As a trader, your primary concern is to provide clients with the best services or products on offer. You take the time to understand their needs. If there are complaints, you attend to them in the quickest possible manner. In a nutshell, you are the expert and vision carrier.

In the day-to- day running of your enterprise, there are transactions. A transaction, in simple terms, is the instance where a person buys, and another one sells. At the end of this interaction, there is an exchange. One party pays cash while the other issues a product or renders a service.

You want to know how much money you have made. Meanwhile, the business incurs costs. You must spend money on things like:
– Rent for the business premises
– Telephone costs
– Internet connectivity
– Wages to employees

Come the end of the current trading period, you will be keen to find out how much profit you have made. In other times, your firm may incur losses.

Every business needs to keep track of the cash coming in from the sale of its goods or services. On the other hand, you must ensure that you record all instances where you are paying out money. The difference is a gain or profit; that is if you had more cash coming in than going out.

The problem is, most entrepreneurs have little or no idea on how to keep business records. Besides, you have many tasks that call for your attention. There is almost no time for anything else. For your company to succeed, you must put in all the effort required.

With these thoughts in mind, you now realize why you need bookkeeping services. Here are more reasons to ponder:

Tax preparation

With a small business to run, you must declare and pay your taxes at the end of the year. Computation of taxes comes from your net income or what remains after deducting expenses.

Performance comparison

You need to compare results on a month by month or periodic basis. Every business owner must know their income as well as where they are spending money. Moreover, by comparing a previous period with the current one, you can deduce whether there are any leakages or overspending.

Borrowing

Lenders review a company’s financial reports to decide whether you are capable of servicing a loan. Without properly kept books, you will have a hard time trying to seek for financial assistance.

Payroll computation

There are people you have employed to assist in the day-to- day running of your firm. These may include the receptionist, tea girl, cashier, manager and so on. You must ensure that you pay them their salaries on time. Additionally, there are statutory deductions.

There are many more reasons to hire a bookkeeper. You might not have sufficient funds to procure software and pay for the required licenses. By outsourcing this service, you can leave the burden of keeping financial records to another person. In the meantime, your focus becomes that of growing your enterprise.

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