Use a qualified bookkeeper to leverage your time

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Empowerment is important for every entrepreneur so that they can work smarter, not harder. Now, this is more important than ever.

Many of us understand that empowering others frees us up to make contacts, give and receive referrals, view properties and ultimately make the sale.

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Feel more comfortable delegating to others those activities that cost money, are considered direct costs, or contribute to sales. Funds spent on advertising the property, stagers or photographers will ultimately help with sales. A good photographer or stager may help sell more money faster.

But what about delegating and paying for tasks that only indirectly contribute to profitability? Yes, I’m talking about bookkeeping.

Save time and energy with bookkeeping support

Before you stop reading, hear me out. First, how much time do you spend doing accounting each month? If you keep everything organized, maybe four hours a month. You’ll still need to send it to a CPA to correct your mistakes, and the hourly rate is much higher than what a bookkeeper charges.

Additionally, you may not get accurate financial statements every month. You may not be tracking your actual monthly expenses compared to your budgeted expenses. Finally, at the end of the year, if you rely on a CPA to prepare year-end payroll tax reports and 1099s, get them from a recovering CPA—you are overpaying for these services.

I spoke with Alicia Hammersmith, director of client services at online bookkeeping company BooksTime, and she said, “Our bookkeepers are trained in your industry. This makes them more efficient and easier Make mistakes, and allow you to focus on your business, not in your business.

We also spoke to Alison Williams, Growth Partnership Manager at Bench, An online bookkeeping and tax preparation company, he puts it this way: “Our clients work with tax advisors and bookkeepers. This setup creates internal efficiencies because over time, when tax deductions appear to increase tax efficiency , they’ll have the conversation. This saves the owner from having to micromanage the book, so they have more time to make the sale, which also avoids time crunches as tax deadlines approach.

Williams also says, “Just bring it back to the emotional/consequences of leaving it to last, like getting pre-approved for a mortgage – better yet, get all the paperwork done in one go, or allow yourself to do it all year All in good order.

How year-round bookkeeping can keep you on track come tax time

We believe that doing quality bookkeeping throughout the year can help with year-end planning. This creates time for good business and tax planning. Waiting until a pinch is not a good idea as your needs may be ignored.

If your bookkeeper charges $3,000 per year to prepare a balanced set of books and records, you may save enough time to sell another property; you may make an additional $3,000. Additionally, your CPA may be able to reduce your fees by hundreds of dollars.

So, what is the most effective way to hire a bookkeeper? I’ve provided a list below:

1. Gather all legal documents, such as your Secretary of State registration so your bookkeeper has your legal name and federal and state taxpayer identification numbers.
2. Provide your bookkeeper with your business plan and budget so they can create a chart of accounts.
3. Your bookkeeper will set up your chart of accounts to enter into your accounting software.
4. Provide your bookkeeper with a list of your business checking and savings accounts. In addition, information about all suppliers and customers, independent contractors and employees (if any). (This may already be embedded in your QuickBooks.)
5. This should allow the bookkeeper to prepare a set of monthly reports for you to review, showing each month’s operating results compared to your budget. You really need to check in with your bookkeeper at least four times a year to catch erroneous postings and, most importantly, give you a true picture of your profit and loss.

Finally, be open to the idea of ​​hiring a bookkeeper to handle your books for you. This time next year, youYou might thank us.