A bookkeeper undoubtedly has a key role when it comes to small businesses achieving their financial goals and overcoming their pain points. The following can be achieved:
1) Accurate financial information: Bookkeeping helps with managing finances in an effective manner. All financial transactions are accurately classified and deadlines are followed so information is timely. Important decisions are made using this information.
2) Generating financial reports: These financial reports provide an opportunity for small business owners to understand their company's financial health. These can include income statements, balance sheets and cash flow statements.
3) Determining areas of inefficiency: Through analyzing a small business's financial records, a bookkeeper can identify areas where the company is wasting or underutilizing its resources. This can help the business owner make the necessary changes that help profitability.
4) Budgeting and cash flow management: Bookkeepers can help small business owners with the creation of budgets and managing cash flow. They can also advise on how to allocate funds to reach specific financial goals.
5) Providing tax planning services: Bookkeepers can assist small businesses with tax planning and see that they are taking advantage of all available deductions and credits.
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