Running a small business can be fraught with challenges. Whether it’s generating new leads, making sales, managing your inventory or trying to grow your business, being a small business owner means that you’re juggling over half a dozen balls everyday. And on top of all those other things you have to deal with, you’ve also got to worry about keeping your books, doing payroll and paying your invoices. It makes sense to want to relieve your stress and let someone else juggle those tasks for awhile. You may want to consider hiring a bookkeeper to lighten that immense workload.
At Hacker Accounting, we know how much a good bookkeeper can help a small business run smoothly. But we also know how big a decision it can be, trusting and sharing your financial information with someone else. If you’re wondering if getting a bookkeeper is the right move for your small business, weigh these pros and cons and see what will work best for you.
Keeping an accurate financial record of your business is an essential task; it’s also an extremely time consuming one. Between managing your own books, dealing with payroll and paying the invoices, a small business owner can end up spending so much time doing administrative work that they don’t have the time or energy to grow their business. Hiring a bookkeeper to do this for you would free you up to work on building your business. You can do what you love to do while the bookkeeper takes care of what you need to do.
A bookkeeper is a trained professional, who understands the ins and outs of finance and record keeping. Even the most intelligent layperson can make some serious errors while doing their own books. Having someone who knows how to do this for a living can help you keep better books and reduce the risk of making mistakes that could cost you significantly in the long run.
Another benefit of hiring a bookkeeper is that you’ll get a fresh perspective on how your business is running. As a small business owner, you’re there everyday, working on every aspect of your business. It’s hard to have any objectivity when you’re that close to your work. Your bookkeeper brings an outsider’s perspective to the table. They may notice irregularities in your book-keeping, or point out to you ways that you can save money on essential goods and services that you wouldn’t have realized on your own.
A bookkeeper can be an excellent source of information when tax season comes around. They will understand the nuances of federal and state tax returns, and help you pay your quarterly estimated taxes. They also can pick up on warning signs and other financial issues your business may have that could make your next tax season a painful one if you’re not careful. They’re also able to help you find deductions and other ways of securing a larger return at the end of your fiscal year.
Having someone else do your books means that you could become less familiar with the financial details of your business. While doing your own books can be very time-consuming, it gives you the benefit of seeing where all your money is going and understanding all the costs involved with running your business. Once you hire a bookkeeper to take on these tasks, you may lose touch with some of this knowledge.
If you do your own books, that makes you the person who is responsible for the honesty and accuracy of your financial records. Bringing in someone else to do your books means having to put your faith and trust in someone else’s expertise, honesty and integrity to represent your business in this crucial area. That’s why you should always vet your bookkeepers thoroughly and ask for referrals. It’s also a wise practice to review a minimum of a week’s worth of postings every month to make sure that they’re doing quality work.
Doing your own books costs time, but not necessarily money. Hiring a bookkeeper to do your books is an expenditure, and as a small business it may be hard to make that financial commitment. One thing to keep in mind, though, is that in the long run a good bookkeeper can more than justify their fees by saving you thousands of dollars. Better to pay for a bookkeeper now than pay back-breaking back taxes, legal fees or suffer an audit later.
Have More Questions About Hiring A Bookkeeper?
If the pros look good on hiring a bookkeeper, give Hacker Accounting a call at 602-375-5251 and talk to one of our pros. Our expert bookkeepers can help your business stay on the right track.