Why Hire a Bookkeeper: Four Reasons to Outsource Your Books Today
When starting a business, it is tempting to try and do everything yourself. Especially the books – after all, you tell yourself, “shouldn’t I know what is going on in my business and finances?” However, smart founders know that bringing in a professional bookkeeper not only saves you time, but also actually gives you a much better view of your finances.
After working with many different types of businesses – we’ve put together the below list of four reasons every small or start-up business can benefit from hiring a bookkeeper.
1. Keep your focus on growing your business. And ensure you keep some semblance of work-life balance.
In small and start-up businesses, there’s very little room for error. In many cases, your success can impact your family and life. As the founder of a business, your time should be devoted to strategy, marketing, funding and other key areas that require your focus, rather than the daily operational tasks of a business.
On a related note, if you DO try to take on the operational stuff – like bookkeeping – you’ll likely be doing it on nights and weekends, eating into the family and down time everybody needs to stay balanced and avoid burnout.
2. Get an outsider’s view on your business.
Even, if like many business owners, you know exactly how much is in the bank, how much of your accounts payable is outstanding, and what you need to make to break even and grow, you can still be too close to actually see the trends in your finances. Your bookkeeper has a different perspective just from crunching the numbers.
We recently worked with a client to balance how many of her customers were delinquent vs. how much of the payments she gets from clients on credit cards are eaten up by credit card fees. This allowed her to make some choices about incentives for clients who pay by check, convenience fees for customers who use credit cards, and the trends around which customers pay late and how she can provide incentives to pay on time. With everything else on her plate, she just wasn’t able to see the trends – but was able to make some great business decisions that improved cash flow, simply because our team was able to bring them to her attention.
3. Make sure everything is paid on time.
We’ve alluded to this a few times. You’re busy building a business. Really busy. Between moving your business forward and putting out daily fires, something has to give. Very often, for clients, we see that the thing that falls through the cracks is paying bills on time. Excellent credit with vendors can give you the flexibility you need to make big moves in your business – don’t mess it up with missed, late or forgotten payments.
4. Experts do everything better.
Unless you’ve been a bookkeeper yourself, chances are good that there’s a lot you don’t know about the role. Sure, anyone can use QuickBooks, but there are lots of details around taxes, cash flow, corporate filings, and other finance functions that professional bookkeepers just know – and having one on your team can save you money and time in the long run. The last thing you want is to get audited or owe penalties just because you forgot quarterly or annual tax filings. And you definitely don’t want to be late on 1099s or other forms for contractors and freelancers. A professional bookkeeper can get you organized and then come in regularly to keep you on track – and avoid larger payments and headaches down the line while freeing up your time to focus on growing your business.