The Importance of Bookkeeping for Your Small Business in 2025
April 10, 2025
Bookkeeping is a service that is often underestimated by business owners—you know it’s important, but you don’t know exactly why or how. Sure, you’re “keeping your books organized,” but what does that mean—and how does that help you?
As a business owner, bookkeeping is one of the on-going investments you’ll often be recommended to do first. And the full benefits of a bookkeeper often isn’t revealed until you DO hire a bookkeeper—but, until then, you’re asking yourself, “is it time to hire?”
While that’s a decision you’ll need to make yourself, I’m sharing the importance of bookkeeping for your small business so you have all the tools you need to make the decision:
Why is Bookkeeping Important?
There are two main reasons why bookkeeping is important:
- Staying informed on what’s happening financially in your business.
- Ensuring that your finances are organized for tax purposes.
Both of which can make a huge difference in the performance of your business and the decisions you make throughout the year(s). For example, it can help you determine what offers to launch or retire, how much to expect to pay in taxes, or when to expect a slow season.
The longer you keep up with your bookkeeping (whether you’re doing it yourself or outsourcing it to a bookkeeper), the more information you’ll have to help you make decisions about and around your business.
Let’s take a further look at why bookkeeping is important for your business:
You Can Anticipate & Adapt
With a bookkeeper, you’re able to stay financially informed about your business. This allows you to anticipate changes as they’re happening and adapt quickly when what would be an unexpected situation comes up.
Predict Upcoming Trends
A bookkeeper doesn’t just look where you are currently, rather, they can look at your business as a whole. The longer you work together and keep accurate records, the more your bookkeeper can look at past trends in your business related to popular services or sales and provide insight for the upcoming months.
Stay on Top of Savings & Expenses
If you’re not tracking your expenses, you don’t know how much you’re spending. A bookkeeper helps you keep track of your monthly and recurring expenses and an estimate of how much of your income you should be setting aside for your taxes. You’re both prepared for those yearly tool or program payments—and you’re prepared for tax time.
It Can Save You Money
Since your bookkeeper is keeping track of what is coming into and going out of your business (your cash flow), they can also identify areas to save. For example, they can remind you of subscriptions you may not be using anymore as well as mark business expenses to deduct during tax time.
How to Keep Up With Your Bookkeeping in 2025
If you’ve neglected your bookkeeping until now, don’t worry! You CAN recover, but you should start as soon as possible. The longer you wait, the harder it is to get everything organized, up to date, and accurate.
Not sure if you have the time to commit to keeping up with your bookkeeping this year? Hire a bookkeeper (like me) to do it for you!
