Why Your Business Needs to Hire a Bookkeeper
Whether you’re launching a new business, trying to expand or simply need a helping hand with your books, hire a bookkeeper. It makes perfect business sense.
Not everyone has the time and expertise to create perfect financial records… except professional bookkeepers. Hiring a professional bookkeeper to keep your files up to date and perfectly organized will save you time and money. Here are some questions that may help you see why.
A Quick Q&A
But I have an accountant. Why do I need a bookkeeper?
Simply put, a bookkeeper is responsible for recording the daily transactions: purchases, receipts, sales, payments, etc. In other words, bookkeepers generate data about the activities of the organization. Accountants turn that data into tax filing, financial planning and advice.
Some accountants have in-house bookkeeping services; some don’t. Some accountants outsource their bookkeeping to bookkeeping experts. Or, they can recommend the services of a preferred bookkeeper to their client so the client can deal directly with the bookkeeper.
Can’t I do it myself? Isn’t it just math?
Just because someone has basic math skills and accounting software on their computer doesn’t make them an accountant or a bookkeeper. The biggest problems with bookkeeping done internally are time and expertise. Ask yourself, do you have time to produce perfectly reconciled books or is your time more valuable spent in other pursuits?
As well, most accountants expect the data from a client to be organized a certain way. They also expect the data to be accurate and exact. With a professional bookkeeper, all records are detailed and complete – before your accountant ever sees them.
Isn’t there software now that does everything a bookkeeper does?
Honestly, programs like QuickBooks Online have a lot to answer for. Because no matter how great a piece of software is, even the best applications require intelligent entry and analysis (as in, online solutions still require input from you).
And when you use bookkeeping and/or accounting software, someone still needs to know when to sound the alarm if a financial issue needs attention.
How does hiring a bookkeeper save me money?
The more time an accountant spends chasing down the detail that proper bookkeeping provides, the less time they have to devote to what they do best: examining your financial records and making recommendations on how your business can run more efficiently. Having flawless data month after month makes an accountant much more effective.
Also consider, what’s the cost of your time? You may not have an ‘hourly rate’, but every minute you spend chasing down receipts is time not spent on your business, doing what you do best.
Perfect financial records from the get-go means less time spent picking through them later (say, at tax-time). Your accountant (and your bottom line) will thank you.