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Why should I hire a bookkeeper?

Bookkeepers play an important role in the business world. They save you time by handling all of your everyday financial tasks, allowing you to focus on running your business. They can use the real-time data they collect to provide you with new insights into your business.

Why hire a bookkeeper when you can perform these functions yourself? You are an experienced business owner who has been crunching figures since the beginning.

Consider a scenario in which your startup is transitioning from concept to reality. There are numerous things to ponder and think about.

And one of them can be the crucial decision of when to bring in outside professionals to help you with some of the operational aspects of operating a business.

The financial element of your company is almost probably one of those functions. While you may not want or desire the services of an accountant, you should consider hiring a bookkeeper to assist with the numerous financial elements. The only other option is to train as a bookkeeper so that you can comprehend every part of your company! And that’s not possible.

A make-or-buy decision is a challenge that both large and small enterprises face. Small firms face an even greater challenge in determining whether to create or acquire anything because they have limited time and financial resources.

You must choose whether to prepare your books yourself or hire someone else to do it for your small business. While there is no single optimal solution that applies to all organizations, there are several elements to consider in order to make the best option.

Bookkeepers save you time by handling all of your everyday financial tasks. They can use the real-time data they collect to provide you with new insights into your business. Hire a bookkeeper as soon as possible after launching your company, we’ll share what we’ve discovered.

Bookkeeping is often treated as an afterthought or a bother by small business owners.

Hiring a professional bookkeeper could save you money and give you more time to focus on your core business.

The average wage for an in-house full charge bookkeeper is $40,000 per year. Accounting consumes time that may be better spent expanding your firm. Some business owners are simply not “numbers people,” making bookkeeping seem like a difficult operation.

Forming a connection with an expert who can steer you in the proper direction is critical. A certified outsourced bookkeeper should also be a specialist in their sector.

When should you hire a bookkeeper?

You’re at the end of the month, staring at a stack of receipts and unpaid invoices. You’d rather be on the sales floor or managing new customer relationships, but you have to figure out if you made money this month. Is hiring a bookkeeper to manage your small business accounts worthwhile? We’ll share what we’ve discovered with you.

You should hire one as soon as possible after launching your company.

Otherwise, you can find yourself dealing with receipts and invoices for several months. This will take time and effort because you will have forgotten which client to bill for a specific expense.

Many small business owners set out to create the greatest product or service possible. Bookkeeping is frequently treated as an afterthought or a bother. They may start their firms without giving much thought to who would maintain track of their finances or submit their taxes.

They frequently join up for a SaaS firm such as Xero, Freshbooks, or Quickbooks Online in order to manage their everyday transactions.

Despite the fact that these tools appear to be simple to use, small business owners may struggle or even fail because they lack accounting skills to back up their good intentions.

The average small business owner who does his or her own books spends about ten hours each week on the chore. This is time that is diverted from the core business and may not result in additional revenue.

Before completing bookkeeping, small business owners should ask themselves the following questions:

  • Do I have the knowledge and abilities to set up a bookkeeping system on my own?
  • Do I have enough time to keep the bookkeeping system up to date on my own?
  • Is it better for me to spend my time maintaining the accounting system?
  • Is it possible for me to stay current on new tax legislation in order to avoid legal repercussions?

If you find yourself saying ‘no’ or even ‘not sure’ to any of these questions, it could be a good idea to hire a professional bookkeeper right away.

How will your bookkeeper save you money?

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It’s often difficult to justify outsourcing business bookkeeping. Yes, hiring a professional bookkeeper is an additional cost, but you may end up saving far more money than you would have paid your bookkeeper.

You’d also avoid the burden of worrying about being ready for tax season, knowing your financial situation, and second-guessing your company decisions.

In-house bookkeepers and outsourced accountants are typically far more costly than an outsourced bookkeeper. It’s crucial to remember that when you recruit in-house, you’re liable for payroll taxes and benefit programs.

The average wage for an in-house full charge bookkeeper is $40,000 per year.

This could be a bitter pill to swallow for a small business owner. Hiring an outsourced bookkeeper costs around a quarter of this amount and eliminates the need to pay payroll taxes and benefit programs.

A certified outsourced bookkeeper should also be a specialist in their sector. This ensures your money is always managed by someone who understands how tax laws and regulations affect your business. It is impossible to run every area of your firm as a small business owner.

Once your company is up and running, you should delegate your bookkeeping to a professional that is looking out for your best interests. Forming a connection with an expert who can steer you in the proper direction is critical.

Time

Most small-company owners regard business bookkeeping as a time-consuming activity, and many dislike looking over spreadsheets.

The only scorecards that can inform you about how well your business is doing are the books. However, some business owners are simply not “numbers people,” making bookkeeping appear like a difficult operation to them.

As a result, these business owners contact specialists from top bookkeeping organizations to take advantage of their best bookkeeping services.

Are you still in charge of your finances?

Are you still reporting your accounting? How much time does this task consume during your workweek?

A business owner can spend up to 5 hours per week updating records and performing calculations on average.

This is just for a typical week, not counting end-of-year reports or tax season. During these big financial events, time might jump by up to ten hours.

What might you accomplish if you had an extra 5 hours per week? What should you spend an extra 10 hours on at the end of the year or at the conclusion of your fiscal year?

Accounting consumes time that may be better spent expanding your firm. This is where you should focus your efforts as a business owner.

You are the operation’s great thinker, the mastermind who must be planning the next major move. Hire a bookkeeper to do this administrative role so you can focus on what you need to perform.

Passion

If you’re just starting out, you might be both the brains and the brawn behind your company. It’s fantastic to be fully in control at such an early and delicate stage.

A business owner will never feel totally at ease handing over control to others. It’s similar to being a parent who never wants to hire that sitter and is always concerned about what happens at playdates and sleepovers.

But Mom and Dad must labour and concentrate on what will ultimately safeguard their child’s future. Your company is your child, and you must ensure that you are providing the finest care possible.

Is that really what you want to be doing for your company, crunching data and writing reports?

Most business owners burn out quickly because they try to do too many things at once. Many business owners also burn out far too quickly since they are forced to do things they don’t want to do. This amount of commitment and discipline is inspiring. However, it is not an intelligent use of their abilities.

Consider what you enjoy doing. This is where your attention should be directed. Then employ a bookkeeper to handle the finances so you may focus on your business.

Expertise

Consider whether you are a skilled accountant as you evaluate your skills. Do you have a financial background? Do you have a basic understanding of accounts payable and receivable? Are you a seasoned tax preparer?

If the answers are “No,” are you the best person for the job? Of course, you could learn to be one, but you’ll find that this isn’t a wise use of your time right now. If you answered “Yes,” consider the following:

Is it truly necessary for you to be crunching figures and writing reports for your company?

Consider all of the numerous jobs you’ve played in your company. To be sure, they’re all crucial roles. Which ones, though, should you do yourself? Consider what you and no one else can do for your company.

Consider what your genuine abilities are and how you should use them.

In terms of expertise, a professional bookkeeper possesses the necessary talents and skills.

Would you pay a bookkeeper to help you come up with a fresh company idea? Would you engage a bookkeeper to help you figure out what your minimal viable product should be?

Are you in charge of your marketing? Are you planning to expand? You get my drift. Hire a bookkeeper to do what they’re good at while you focus on what you’re good at.

Growth

Every facet of starting a business requires your full attention and effort. However, as you progress through your first year and obtain some consistency, you may want to reconsider your investment. You won’t be able to grow if you continue to do everything.

You must free yourself from the mundane tasks of running your business in order to be able to move your company ahead.

You must concentrate on your main business needs in order to grow.

Don’t get mired down in the details that will distract you from building a good business. Instead, focus on the broad picture. Use your particular business skills to provide the finest care for your company, and engage a bookkeeper to handle the details.

Expense

Do you want to save money by performing your own accounting? This may appear to be a good idea, especially if you’re just starting off or bootstrapping. When it comes time to level up, though, the tables will turn on you, and you will lose more than you anticipated. Take a look at the following factors:

  • How much is your time worth to your company right now? As previously stated, your time is quite precious in certain sectors.
  • How much time do you devote on accounting and finances?
  • How much time does this take away from the company’s essential functions? When you consider what you’re giving up to scribble down receipts and spending, any time spent doing the books is a significant waste.
  • How much do you lose because of your lack of experience? If you are not an expert, you will almost certainly take longer to do these duties and make more costly errors. Consider unpaid invoices, late payments, and tax mistakes.
  • What would your hourly rate be if you could put a dollar tag on your time depending on how it equates to your profits? How much would it cost you to hire a bookkeeper to relieve you of these responsibilities? Certainly, the hourly rates will be considerably different.

When you add it all up, it’s clear to realize how much cheaper it is to hire a bookkeeper instead of devoting your important time to bookkeeping.

Doing it yourself

Beginner bookkeeping does not have to be difficult. We’ve listed basic yet valuable topics in this article to help you get started, including how to fill in your records, simple bookkeeping practices to know, and some helpful tips on studying bookkeeping at home.

While outsourcing your books may appear to be the most straightforward and straightforward option, it may not be the most efficient. Accounting and bookkeeping services can be expensive, and depending on the size and complexity of your company, they may not be worth it!

In many circumstances, a new business owner’s situation is straightforward enough for them to handle their bookkeeping. Furthermore, the monthly amount of transactions may be so low that bookkeeping may not even be a time-consuming process.

A small business owner can receive some benefit by preparing their books in addition to saving money.

For starters, doing your bookkeeping can teach you new accounting and finance skills. This knowledge can motivate corporate executives at any stage of their careers to make better, more informed judgments about future expansion chances.

Furthermore, doing your bookkeeping gives you a better understanding of your finances. Rather than focusing on a single measure, such as your online bank balance, owning your books can provide you with a more complete picture of your money at any time.

There are resources available to help business owners learn how to do their bookkeeping. Blogs from entrepreneurs or companies you trust and are acquainted with, as well as a community of like-minded business owners with whom you can share insights and advice, are excellent places to start.

There are numerous effective small company bookkeeping software tools available, some of which are free to use, in addition to the educational resources. Using the correct accounting software, rather than a more manual technique like spreadsheets, can make bookkeeping a quick and simple operation. You can also hire a mentor to help you learn how to do your bookkeeping using the software of your choosing.

However, if bookkeeping is not your strong suit, doing it yourself may end up costing you more than hiring someone to do it for you. For example, if you can’t grasp accounting concepts, it could lead to a lot of stress and effort spent trying to prepare your books. In such circumstances, outsourcing your books may be advantageous because time is money.

Hiring a bookkeeper

Whoever you hire must be trusted with your company’s financial facts on a daily basis. As a result, you should use extreme caution when hiring a bookkeeper.

You’ll have a lot of options because there are so many bookkeeping companies. You might contact one directly or inquire about referrals from your business partners or clients.

Inquire with your accountant as well. Finding someone who utilizes the same accounting software as your accountant is ideal. This allows them to effortlessly communicate account information.

The accounting software should ideally be cloud-based, which means it can be accessed remotely. Then you’ll all be able to share access to your company’s financial data. You may do it securely and remotely from any location.

One of the most important reasons to engage a bookkeeper is to save time, but growth is equally important. When business picks up and you’ve got a lot on your plate, delegating bookkeeping to someone else allows you to focus on the big picture.

Furthermore, as businesses growth, more complex challenges arise, and having a professional bookkeeper will not only keep your records accurate but also provide you with a great deal of peace of mind.

Putting your trust in a knowledgeable and professional bookkeeper will help you avoid the burden of accounting. Great bookkeepers will get to know your unique financial requirements and can even provide you with expert financial advice.

However, while employing a bookkeeper frees up some time for you, it’s still necessary to keep an eye on your records. Your bookkeeper may understand accounting basics, but they may not be an experienced mind reader when it comes to what’s going on in your company. It’s critical to communicate with them so that their handling of your transactions is suitable and related to what actually occurred.

Similarly, it’s critical to communicate with your bookkeeper so that you don’t lose control of your accounts. Even if you outsource your accounting, you should analyze your financial statements on a regular basis to maintain a current understanding of your financial condition.

Here’s how a good bookkeeper can help your business

Bookkeeping aids in the seamless operation of your firm. As a result, your accountant will not have a comprehensive view of your company’s finances, and you will be unable to make strategic business decisions. Also, your firm has a legal requirement to keep proper records of its finances and file company reports with the IRS.

When it’s time to make the decision, here’s what you should expect from a professional, certified bookkeeper or bookkeeping service (i.e. pick up the phone and find a bookkeeper to do your books for you).

Availability

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You must be able to contact your bookkeeper quickly and get a helpful response. It’s time to consider switching services if your bookkeeper doesn’t respond to emails promptly or goes on vacation without alerting you.

Clear, easy communication

Bookkeepers must be bilingual in order to communicate with accountants and other bookkeepers, as well as the rest of the world. There should never be so much jargon in a conversation that you can’t grasp what’s going on. Make sure you’re working with a bookkeeper who can—and will—explain your books to you in clear English.

Tax-ready financial statements

Working with a pro has many advantages, like receiving up-to-date financial statements that you may use to plan business movements or complete your taxes. If your bookkeeper fails to deliver, it’s time to look for another option.

High-security standards

An attack can render even the best bookkeeper useless if their computer—and your company’s financial data—is taken offline. Your bookkeeper should be able to prove that they have all of the necessary security measures in place.

So, Why Should You Hire a Bookkeeper?

Bookkeepers play an important role in the business world. They save you time by handling all of your everyday financial tasks, allowing you to focus on running your business. They can use the real-time data they collect to provide you with new insights into your business.

Simply because it makes good financial sense, you should hire a bookkeeper for your expanding company. They are better at these tasks, and you are better at other tasks. Consider what you should be doing with your time.

A bookkeeper’s time, like yours, is best spent doing what they do best. They are passionate about what they do, and you should be as well. Become an entrepreneur. Follow in the footsteps of successful entrepreneurs. Hire a bookkeeper to track your achievements and lead your firm to higher and better revenues.

When all indications point to moving away from DIY bookkeeping and toward professional assistance, it’s time to make your next move. Begin by reviewing our guide to selecting the best small business bookkeeping solution for your company.

Most business owners burn out quickly because they try to do too many things at once.

Consider what you and no one else can do for your company. Hire a bookkeeper to do what they’re good at while you focus on what’s good about you. A professional bookkeeper possesses the necessary talents and skills. As a bootstrapping entrepreneur, you may want to reconsider your investment in bookkeeping.

You must free yourself from the mundane tasks of running your business in order to grow.

Use your particular business skills to provide the finest care for your company, and engage a bookkeeper.

Accounting and bookkeeping services can be expensive, and depending on the size and complexity of your company, they may not be worth it. Owning your books can provide you with a more complete picture of your money at any time.

Hiring a bookkeeper must be trusted with your company’s financial facts on a daily basis.

Bookkeeping aids in the seamless operation of your firm.

Great bookkeepers will get to know your unique financial requirements and can even provide you with expert advice.

Even if you outsource your accounting, you should analyze your financial statements regularly to maintain an understanding of your financial condition.

Bookkeepers play an important role in the business world.

They save you time by handling all of your everyday financial tasks, allowing you to focus on running your business. Hiring a bookkeeper makes good financial sense; they are better at these tasks than you are at other tasks.

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