If you own a business, operating everything yourself is tempting. However, leave some things in the hands of a professional.
Things such as your finances. About 20% of new businesses fail during the first two years of opening. One of the reasons for this is bad cash management.
Hiring a bookkeeper instead of trying to pull off DIY accounting is better in almost all instances. Not only does it save time, but it lessens the chances of a fatal financial error. Check out this handy guide to learn more.
What Is a Bookkeeper?
Bookkeepers handle all administrative tasks centered around finances, including following up on past-due payments, setting up billing reminders and payroll.
A good bookkeeper will keep track of your daily transactions, but it’s not their job to analyze these numbers. They also aren’t in the business of giving financial advice.
Benefits of Hiring a Bookkeeper
The main reason to outsource bookkeeping is to save time. Since the professionals have extensive knowledge of handling records, they can do the job faster than you.
Business growth is another good reason to hire a bookkeeper. As your company grows, you’ll have more on your plate. You won’t have time to do your payroll.
Even if you find time to do your bookkeeping, you may be tempted to rush through it to move on to the next thing on your to-do list. This will cause you to make catastrophic errors.
While bookkeepers don’t have to give financial advice, many will offer insight. They can teach you how to cut costs.
Lastly, bookkeepers can help you save money. Putting your finances in the hands of a professional will prevent you from facing costly penalties. If you hire someone that works off-site, that will allow you to enjoy even further savings.
Can You Handle the Job Yourself?
In some cases, it could be more efficient to hire a bookkeeper. It can be costly. Some professionals stack extra charges on top of their regular rate.
If you own a smaller business that doesn’t have a lot of complex financial needs, you’ll be able to do your bookkeeping. Of course, this will change as your business grows.
You’ll need to do much research when hiring a bookkeeper, considering you’ll trust them with your confidential financial data and banking information.
If your bookkeeper makes a mistake when handling your finances, it will become your company’s mistake.
Keep Your Business Finances Under Control
Outsourcing any of your operations can feel nerve-wracking as a small business owner because it involves giving up control.
However, that is not a bad thing when it comes to something as complex as your finances. Hiring a bookkeeper will save you time and money if you bring on the right person for the job.
We have affordable monthly bookkeeping services that will help you keep track of your payroll and financial statements.