Do I Need a Bookkeeper for My Small Business? All business owners know that bookkeeping is part of small business management. Unfortunately, around half of those same small business owners loathe the actual practice of bookkeeping. Some of it likely goes back to exposure.
Many entrepreneurs lack any formal business training. So, they launched their businesses without even rudimentary business bookkeeping experience.
On top of that, over half of small business owners work 50 or more hours a week. Dropping an unfamiliar financial task on top of that can prove taxing for almost anyone.
That widespread misery begs the question: Do you need a bookkeeper for your small business? Keep reading for some tips to help you decide.
Do You Hate Bookkeeping?
Running a business successfully is a hard job at the best of times. Spending hours of your working life doing a task you truly hate and feel underqualified for won’t make it any easier.
Delegating that responsibility to a professional bookkeeper will remove that stressor from your working life.
Do You Like Getting Paid?
Most business owners are pretty good about sending invoices. Yet, a surprisingly high percentage of them don’t track late invoices especially well. That leaves a lot of small businesses with past-due revenue tied up in their accounts receivables.
Bookkeepers will often take on the task of invoicing and following up on unpaid invoices. That can make your bottom line look a little better. It also helps ensure that your accounts payable remain in good order.
Do You Want to Avoid Tax Problems?
A bookkeeper doesn’t prepare your taxes. That’s a job for your accountant.
However, your accountant does need accurate and up-to-date financial information to file those tax forms. Hiring a bookkeeper helps you ensure that your accountant gets that accurate and up-to-date information for the tax forms.
A bookkeeper will create financial statements about where your business is at on the financial front. The accountant uses that information for your taxes but can also use it to offer advice.
Do You Like Paying Fewer Taxes?
Part of business management is finding ways that you can reduce your overall tax burden. One of the simplest ways you can do that is through basic expense tracking. You should consult with your accountant about what expenses you should track for your industry.
Armed with that information, you can hand off expense tracking to your bookkeeper. Then, you can give that information back to the accountant and watch your total tax obligations shrink.
Does Your Small Business Need a Bookkeeper?
Not every small business needs a bookkeeper. For example, sole proprietorships with small revenue streams can often get by with nothing more than a basic accounting program.
Once you start hiring employees and can’t keep track of every single invoice in your head, it’s time for a second look at a bookkeeper. They can save you time, help reduce your taxes, and even bolster your bottom line.