Why You Should Hire a Bookkeeper

why hire a bookkeeper

For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract if from your revenue in order to determine how much profit you’ve earned in that time. Not only does overworking lead to burnout, but every minute you spend on a task has a dollar equivalent. Access all Xero features for 30 days, then decide which plan best suits your business. So both of them can both give you advice about where your business is right now – and where it’s heading.

Should you hire a bookkeeper or do it yourself?

Doing your own bookkeeping means you'll need to reserve enough time each month to clean up your books, but you'll gain a better understanding of your business. Hiring a bookkeeper means you'll spend more money up front, but run your business knowing an expert is handling your books and preventing mistakes.

In this situation, a bookkeeper could quickly assess the missing transactions and record them in the accounting software. Without this expert backing you, the software would overlook the entries, potentially resulting in inaccurate financial statements or fiscal tax returns. A bookkeeper has the skills and experience to ensure that your financial records are accurate and up-to-date. They can reconcile accounts, track expenses and revenues, and produce financial statements that are accurate and reliable. If the possibility of applying for financing is in the horizon, it makes sense to hire a bookkeeper now to get your books in order.

When you should hire a bookkeeper

In any case, the absence of an appropriate bookkeeping procedure prompts pointless spending, subsequently influencing your business’ profitability. Working with an experienced bookkeeper offers the possibility fixing your financial records after so long of casualness and disinterest. You lay out command over costs, work on operational proficiency and upgrade your profitability.

Why would someone hire a bookkeeper?

A bookkeeper can give you an outside perspective on how you can manage your budget and run your business more efficiently. They can teach you ways to cut costs, provide insight into your spending, and more. Ultimately, hiring a bookkeeper will help you save money.

Our rigorous screening process involves multiple rounds of interviews and assessments to ensure that we only hire the best bookkeepers. Whether you’re just starting your business or scaling it, a bookkeeper can be an important part of your small business’s growth. Take your time when hiring, however, to make sure you find a great fit. If you already have a CPA taking care of your taxes, you may wonder why you’d also need a bookkeeper. The biggest difference between accounting and bookkeeping is the motive behind what they do. If you have loan covenants to maintain or investor reporting to prepare, an experienced bookkeeper can manage this to ensure you don’t miss a deadline.

Here’s how a good bookkeeper can help your business

In addition, you must ensure they are tech-savvy and can use the latest bookkeeping software. This is important as it will make their job easier and enable them to work more efficiently. For example, let’s say you’re thinking about expanding your business. Before making any decisions, you need to know if your business can afford it.

This is where a bookkeeper can come in handy, helping you to stay on top of things and providing you with the accurate financial information you need to make important decisions. A bookkeeper can help simplify tax preparation by ensuring that your financial records are organized and up-to-date. They can also help you identify tax deductions and credits that you may be eligible for, reducing your tax liability. This can save you time and money, and help you avoid costly mistakes. In this blog post, we’ll be exploring the many reasons why hiring a bookkeeper might just be the best investment you make for your small business.

Tax Preparation and Compliance

Here are a few of the most common reasons small business owners drag their feet when it comes to hiring a bookkeeper. A great bookkeeper will manage your accounts receivable and accounts payable to keep cash moving. One of the best ways to find a qualified bookkeeper is by asking other business owners who they use or have used in the past. To find the right bookkeeper for your business you should ask for referrals from other business owners, research professional organizations, and check online reviews. Overall, if your business is facing any of these scenarios, hiring a bookkeeper should be considered as part of your strategy.

why hire a bookkeeper

Managing cash flow is critical to the success of any business, and a bookkeeper can help you do this effectively. They can provide you with regular financial reports, help you manage your accounts payable and receivable, and offer advice on how to improve your cash flow statement. If you’re how to hire a bookkeeper looking to expand, hiring employees, and doing payroll, a CPA can help with big decisions. Having a CPA is important but usually far more expensive than a bookkeeper. Bookkeepers are more involved in the day to day, keeping the records you’ll need to give to your CPA at tax time.

QuickBooks Live Bookkeeping

Likewise, they’re familiar with the ins and outs of your business’s income and expenditures, making it a snap to track invoices, pay for supplies, and reconcile everything neatly for tax time. Few freelancers and business owners have finance credentials or even a basic understanding of accounts payable, accounts receivable, and due taxes, let alone operate an accounting software. It’s preferable to delegate accounting tasks to a professional who has completed courses and received certification in these areas.

  • Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out on what you are doing.
  • In fact, detailed documentation is a requirement in securing a mortgage or a business loan, and your CPA bookkeeper can take care of this for you.
  • More likely, you’ll be caught in an email or phone back-and-forth as the two of you puzzle your way through a year’s worth of uncategorized expenses and income.
  • As your winery grows, knowing how much cash you have in the bank isn’t enough.
  • You’ve got more products to sell, and need to keep your accounting records up-to-date while you hustle to grow the business.

But Mom and Dad have to work, have to focus their attention on what ultimately secures their child’s future. Your business is your baby, and you need to make sure that you are taking care of it the best way you can. Bookkeepers can be incredibly helpful resources — but they’re not free. Whether you want to hire an in-house bookkeeper, a third-party bookkeeper or an online service, you’re going to have to pay something. A bookkeeper can be someone who does more than just keep track of numbers for you. They can walk you through certain processes and explain why those processes are important so you don’t feel left in the dark when it comes to your accounting.

As beneficial as hiring a bookkeeper may be, it’s not always the right time to hire one. They can cost more than doing your own bookkeeping, and they might not always be necessary. By outsourcing your accounting needs to well-trained virtual assistants, you can rest assured of a robust, scalable, and streamlined accounts process while focusing on your larger business goals. Hiring a virtual assistant can help you streamline your accounting needs. Wishup’s instant replacement policy means that if for any reason you are not satisfied with your virtual bookkeeper, they will be replaced immediately, with no questions asked. This ensures that you always have a reliable bookkeeping service that meets your needs.

Learn the benefits of outsourcing bookkeeping, including savings, accuracy, and more. Besides the costs and time savings, there are other peace-of-mind benefits from hiring a bookkeeper. Even at the top of the range – $2,500 per month – it would cost your business $30,000 a year. Outsourced bookkeeping comes with none of the a la carte overhead expenses.

Intangible Qualities That Hold the Key to Unparalleled Business Success

You need a bookkeeper to handle your records and books, and of course, we need them to be very well-organized and equipped with the necessary administrative skills. Bookkeepers can not only help you keep better records, they can also ultimately help to improve your tax return. With them, taxes will be a breeze, and you will have a dependable helping hand to avoid audit expenses and inadequate records. Bookkeepers are very reliable when it comes to making sure that your business is making more money than it’s losing. They provide an extra pair of eyes when it comes to taking care of your funds and ensuring that you don’t run out of day-to-day money.

You should ensure accurate financial reporting, beginning from day one of your business. However, accuracy will become even more crucial when you seek external financing. Any investor or bank will take a fine-tooth comb to your finances before providing any funding, and someone dedicated to managing your books helps guarantee that your financials are on point.

The exception is Colson Strategies who has become a dependable partner. But research from Adaware also reports that over 90% of home computers have been infected by spyware at one point or another. Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the cost of commuting. More likely, you’ll be caught in an email or phone back-and-forth as the two of you puzzle your way through a year’s worth of uncategorized expenses and income. Which means you’re blind to how much money you’re actually making—and the steps you can take to increase your income.

  • It’s uncommon to find business owners who are good at both creative and financial tasks.
  • If you have a bookkeeper do the job properly in the first place, you’ll save money in the long run.
  • If you have loan covenants to maintain or investor reporting to prepare, an experienced bookkeeper can manage this to ensure you don’t miss a deadline.
  • We can get you connected with an experienced bookkeeper through our Xero advisor directory.
  • In reality, complete paperwork is a need for obtaining a company loan or mortgage, which the business bookkeeper can always offer.
  • If a freelancing company needs to conduct an external audit, having a bookkeeper on staff will be beneficial.

Accountants earn an average salary of $54K per year, not including benefits. A bookkeeper’s time is best spend doing what they do best, and so is yours. Lead your company to bigger and better profits and hire a bookkeeper to record your success. On average, a business owner can spend up to 5 hours a week updating records and making computations. And this is only during the average week, not including end-of-year reports and tax season.

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