If you have an aging parent that has handled their own finances for a small business and you can see that they are slipping with managing the books and bills and keeping track of their finances, get a bookkeeper. You don't want them to mismanage money, make financially irresponsible decisions, or have errors that create a financial burden because they aren't able to keep up with all the paperwork. Here are some of the things to talk with a bookkeeper about.
Services and Cost
There are different services that bookkeepers can offer. Ask the service provider if they will provide the following things:
- Payroll services
- Bill pay
- Online communication options
- Tax preparation
You want to know what you will get for the cost and how much this will cost your parent. If you think this will help them improve profits, prevent errors, and prep for retirement, this will be worth the investment and cost that they pay for bookkeeping services.
Easy to Use Software
An easy-to-use software system that your parents can put financial information in is one of the most efficient ways for a small business owner to communicate with their bookkeeper. If they can take their invoices, receipts, payments, and other information and put it in an easy-to-use system, this can help the bookkeeper keep up with what's going on with the business.
Find a software that your parent can put on their computer or even a phone so that they can enter things as they come. This is also great for tax preparation.
Future Financial Planning
If your parent wants to sell their company in the next few years, the bookkeeper can help get the books ready for this type of transaction. They can also help look at the books to see where they need to improve to make the business more valuable and what the approximate value of the business is.
If you know that your parent is sometimes missing bills, not getting paid for all the jobs they complete, or making banking errors with their business, it may be time to get them help. Meet with a few different bookkeepers that work with other small businesses and see what they will be able to do to help the business and make things easier for your parents. Talk with your parents to see what they can afford to pay someone to help.
For more information, contact a resource like the Tax Specialists Of Northern Colorado LLC.