When Do I Need to Hire a Bookkeeper?

If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource. If you decide to hire and manage a bookkeeper you’ll also have to decide whether the position is part-time or requires full time. If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms. Let’s look into three different options your company could consider to fill this need…

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#4 Hire a Bookkeeper who Understands Your Business

An accountant can also address legal issues, determine financial strategies and generate those much needed reports. An accountant can help you with all of that, as well as troubleshoot the day to day activities of managing the finances of your company. A bookkeeper provides a professional service, so there are less mistakes when organizing finances.

Becoming profitable is every entrepreneur’s goal, but navigating this path can be intimidating for first-time business owners and long-time leaders alike. With so much on your plate, bookkeeping duties may be an unnecessary weight on your shoulders. But, in the age of sophisticated, accessible accounting software, you may be wondering, “Does my small business need a bookkeeper?

Ways A Bookkeeper Can Save You Money

These are just some of the things bookkeepers do for small businesses that affect the cost of their services. Yes, it’s one less thing to worry about, but nothing is more costly than losing sight of spending and outstanding payments in the business. There are better ways to invest your money than simple bookkeeping you could do yourself.

A bookkeeper is responsible for maintaining financial records and ensuring that all transactions are properly documented. This includes tracking income and expenses, preparing invoices, issuing payments, and reconciling bank statements. A bookkeeper can also help you develop a budget and track your progress against it. While you may be able to keep your own books, there are several benefits to hiring a bookkeeper.

Tips for Hiring a Small Business Bookkeeper

Otherwise you could end up with several months’ worth of receipts and invoices to be processed. That will take time and may be difficult to do, because you’ll have forgotten which client to bill for a particular expense. It’s often the case that your bookkeeper will be the constant accounting contact for your business. They’ll be best placed to answer questions about where the money is coming from, and where it’s going.

• Accounting comprises interpreting, classifying, analyzing, summarizing, and reporting a business’s financial data.
• Without accurate financial records it can be difficult, if not impossible, to see where your business is heading.
• Chances are, the pipe will burst again some time in the future because you failed to recognize and fix the cause of the pipe bursting.
• 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.
• Outsourced bookkeeping comes with none of the a la carte overhead expenses.

While these things are certainly important and essential to the day-to-day operation of your company, there are also important long-term investments that you should be making in your business. Accounting services will provide a safety net for freelancing businesses in the event of financial difficulties. If a freelancing company needs to conduct an external audit, having a bookkeeper on staff will be beneficial. Most freelancers do not want to be audited or have the taxman come after them just because they failed to file their quarterly or annual tax returns. It’s important to choose a bookkeeper who is familiar with taxes, payroll, and other business matters.

Payroll processing

If a bookkeeper is an accountant, they may charge $150 per hour or more. And you’d hire an accountant to handle official reporting and high level business advice. Accounting comprises interpreting, classifying, analyzing, summarizing, and reporting a business’s financial data. You should find a trustworthy bookkeeper who is free to discuss their past accolades and accept some blockades in their bookkeeping journey. Transparency is vital in bookkeeping as most of the bookkeeping services have hidden charges.

There are major differences between the three types of bookkeepers and what each can offer your business. Figure out which works for your business and start tackling the problems, or potential problems, with your books. The costs a small business or nonprofit incurs for bookkeeping will depend upon many variables. The bookkeeper can help you with financial difficulties that may arise in your firms, such as the death of a business partner or divorce. A competent bookkeeper must safeguard the firm from a variety of internal difficulties. They are available to give insight into business tax returns and work with a CPA to ensure its business operations are in the open during tax accounting periods.

You can invest in a bookkeeper who is an expert in your industry’s finances but because of the specialised knowledge, they may be limited or more expensive. Whether you’re a billionaire tycoon or a small business run from a home office, managing your bottom line is the difference between success and failure. GrowthForce accounting services provided through an alliance with SK CPA, PLLC. So even if you don’t hire a bookkeeper for the long-term, a short-term arrangement can equip you with the basic, yet essential tools you need. If your business is gaining forward momentum, you need all the help you can get. Whether your task load is too heavy, you expect major transitions soon, or your business is becoming a financial success, a bookkeeper is a crucial tool in your company’s arsenal.

From clerical errors that lead to incorrect invoicing or double payments to vendors, you could be losing thousands of dollars a year by trying to do it all yourself. They are responsible for consolidating accounts’ books, following up on past-due payments and billing reminders, processing payments for suppliers, and even processing payroll. For basic financial tasks, it’s usually better to use a bookkeeper than an accountant, since the former charges a cheaper hourly rate. You may only need your bookkeeper to complete your financial records so it frees up time that you can spend elsewhere in the business.

It’s best to list out in advance exactly what your needs are, review it with your team for input, and when you find someone you like, quote it out first and see if there is room for negotiation. Yes, you can do your own accounting for your small business, many owners do just that. But as your company grows, and there is more demand for your time during your working day, you may find you need the support of an accountant. Afterall, an accountant will have a strong background in math and economics, as well as experience with the best accounting practices, procedures, and tools you can make use of.

A tech-savvy bookkeeper will be able to manage your books efficiently. Bookkeeping is a record of financial transactions that will help an individual or a business to keep track of their performance. Sign up now and enjoy the peace of mind that comes with knowing your bookkeeping is accurate, up-to-date, and free from costly errors. The tips, advice, and guidance offered by a professional bookkeeper will more than likely how to hire a bookkeeper pay off and get you on the right track (or help you stay that way). Together, these financials can become overwhelming, especially if you’re not using dedicated bookkeeping software (or using it to its fullest potential). Bookkeepers are experts at implementing systems to properly record and store your receipts, categorizing them based on the type of expense, and ensuring the data’s there if the IRS comes knockin’.

Reasons You Should Hire a Bookkeeper

They’ll also need to sign the AIPB’s Code of Ethics, and complete the exam. Other options may include having a someone from the firm come by your business to pick up paperwork, or dropping off paperwork at the firm’s office yourself. There are lots of places online to find a quality freelance bookkeeper, but Upwork.com is a good place to start. Just look for a bookkeeper with high reviews from other customers like you. As you continue working with them, a flat rate may become feasible, and offer the benefit of a predictable bookkeeping expense in your monthly budget. Also, if you have catch-up bookkeeping for them to complete, that will be an additional, one-time project that they need to handle.

• You might not need to employ a bookkeeper part-time on a regular basis.
• The real-time information they collect can help them offer you new insight into your business.
• Save money on the cost of running a bookkeeping function with outsourced bookkeeping services.
• Like online hiring platforms, BPO companies can also connect you with a talented pool of qualified professionals looking to get hired.
• With the right knowledge and a helpful app, you can make sure you don’t have to fork out for an expert.