Pros and cons of hiring a bookkeeper

hiring a bookkeeper for a small business

A freelancer may or may not have experience working directly with CPAs. Ask about this during the consultation process, to determine their capacity for helping an accountant file your taxes on time. In both cases, if you use dedicated bookkeeping software, you should ensure that your bookkeeper uses the same brand. They may be able to import expenses remotely, cutting out email threads or trips to the office.

  • Knowing that a professional is monitoring your company’s cash flow and can help you understand your fiscal health can make all the difference in how you approach the numbers side of your work.
  • Bookkeepers help in the avoidance of late penalties and the prompt payment of invoices.
  • Transparency is vital in bookkeeping as most of the bookkeeping services have hidden charges.
  • There are lots of places online to find a quality freelance bookkeeper, but is a good place to start.
  • When the growing pains are over, it won’t take long to see how efficient a bookkeeper’s recommendations can be compared to your old methods.

Benjamin would find areas of improvement and notify the same to officials of the firm. Based on his inputs, “Wander & Wonder” will make profitable business decisions. Save money on the cost of running a bookkeeping function how to hire a bookkeeper with outsourced bookkeeping services. In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered.

They help to perform payroll administration duties

Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. The right bookkeeper isn’t going to denigrate you for taking the DIY route. Find one to work with who’ll make your bookkeeping processes less rough around the edges or double-check your work. Take a course or schedule an introductory meeting to confirm that what you’re doing is right, or to elevate your DIY bookkeeping to a higher level.

One of the best reasons to record accurate financial data is to understand the financial standing of your business. It’s how you can assess whether it’s time to grow or pick up another employee, or scale back to avoid cash flow issues. Ultimately, a bookkeeper’s chief duty is to maintain accurate financial records so that, at any given time, you can assess your business’s financial strength.

Zoho Books

Here are a few of the most common reasons small business owners drag their feet when it comes to hiring a bookkeeper. If you are currently your company’s only employee, growth is as stressful as it is exciting. Scaling necessitates hiring additional staff, and a bookkeeper should be one of your first personnel investments to ensure each addition to your team goes seamlessly.

hiring a bookkeeper for a small business

Not every business has a dedicated bookkeeper, but every business should be doing bookkeeping. If you fall behind on your books, that could cause you a lot of stress — and even penalties — during tax season. If you don’t have the time or experience to properly do your bookkeeping, mistakes are bound to happen.

What should a business owner look for when hiring a bookkeeper?

And so, clearly, bookkeeping is not a recent development but an ancient necessity. As soon as agriculture began, the idea of bookkeeping came into existence.

When your business is ready to grow, a bookkeeper provides vital support as you invest in additional staff or your other responsibilities become more demanding. Preemptively bringing a bookkeeper on board will prevent avoidable challenges and reactionary measures. That’s important when you’re trying to differentiate your business from your competitors. Real-time information is also vital if you want to make sound business decisions. Trusting the financial details of your business with anyone is a big step.

What is a Bookkeeper?

Managing a small business and keeping up with bookkeeping work is not a simple task. Whether you decide to do it on your own (although we hope we managed to convince you that hiring a bookkeeper is a good idea) or hire some to help – you can count on Indy to have your back. We’re here to help small business owners and freelancers manage their projects, financials, and contracts. You can outsource your bookkeeping duties to a company that will set up and train a dedicated team for you and covers all of the expenses needed for their work. These resources include computers with accounting software, VoIPs for billing reminders, and the office space where they will work.

If either part-time or in-house bookkeeping is not the ideal solution, switching to outsourced bookkeeping or accounting could be your best option. Many businesses are concerned about switching over to outsourcing, not understanding how the pieces fit together with this model. But with today’s advancements in technology, outsourcing has never been easier. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper.

Preparing financial statements

Bookkeepers are experts in administrative duties, and any of the above transitions will require an all-hands-on-deck approach to ensure smooth sailing. A remote bookkeeping service may use a custom app—as Bench does—that lets you message your bookkeeper directly. Hiring a local bookkeeping firm is usually a matter of Googling to find which firms are in your area, and then doing your homework to see which ones are the best fit for your business. You can usually ask for references of customers similar to you, so you can get an honest picture of what it’s like working with that firm.

While you may not require or desire the services of an accountant, you should consider hiring a bookkeeper to assist with the different financial aspects. The only other option is to train as a bookkeeper in order for you to understand every aspect of your company. So, back to the bookkeeper choice, here are ten reasons why you should hire one for your freelancing company immediately.

It is important not to rush when hiring a bookkeeper, since they will play a significant role in the growth and development of your small business. They’ll work with your records and with the money that comes and goes out of your business, so you should invest time and great effort in order to find someone you can truly trust. These are the types of reports that allow you to keep updated on the company’s money. You or your investors are going to be making decisions based on the reports your accountant provides, so he/she needs to make sure they are up to date and accurate.

What happens if you don’t do bookkeeping?

Your company's finances are left obscured

If you put a full stop to bookkeeping, your books will no longer show a clear picture of your company's financial viability. Without accurate records, it can be difficult (or nearly impossible) to track cash flow projections and statements.

Bookkeepers can provide valuable insights into your financial status and help you to make more informed decisions about your business. They can provide you with the advice and guidance you need to stay on top of your finances by helping you set up a system for tracking income and expenses. Bookkeepers can also offer advice on financial planning and budgeting, which can provide valuable insights into your financial data, allowing you to make better-informed decisions about your business. You’re responsible for sales, marketing, product development, customer service, and more. But keeping accurate financial records is crucial to the success of your business.

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