A Bookkeeper Can Help You With the Numbers
Pretty much right when you start a business you have to start thinking about and dealing with the numbers. Regardless of your business is large or small, you will need to keep a complete record of every related transaction. This includes everything from sales, expenses, and even salaries. Every single movement of cash coming in to or leaving your business needs to be tracked.
While it’s entirely possible to handle all of this on your own, a lot of entrepreneurs aren’t exactly trained or skilled at bookkeeping. Likewise, they are spending their time doing other things within their business. Therefore, it is commonplace for business owners to look to offload this type of work to professional services like Bould Bookkeeping.
Throughout this article, we will go over some of the reasons you should be considering hiring a bookkeeper and why it can be an essential component of running a successful business. Then, we will take a look at how you can identify and hire the right bookkeeper to run your books.
Three Reasons You Need to Hire a Bookkeeper
While new business owners might assume they can tackle their books on their own, that simply shouldn’t be the case. No matter how much you feel having your accountant look at and sort out the numbers once per quarter or even once per year, that isn’t sufficient. There are plenty of reasons you should make the effort to hire a dedicated bookkeeper. Below, we will be going over some of them.
1. They Can Save You Time
Unless you are trained in bookkeeping, it is not a good idea to attempt to tackle this on your own if only for the sake of maximising your time. Having to complete all of the mundane and time-consuming tasks including inputting receipts, tracking expenses and even tracking payments can be a lot of work on its own. That being said, it’s only a small fraction of what they do. Bookkeepers assign expenses properly, they look at the numbers and input them into the software you use, and then work to make sense of them. An experienced bookkeeper that is worth hiring is one that knows exactly how each transaction should be treated in order to offer the most useful business reports. It is a very skilled occupation and your bookkeeper is going to be much more capable of doing it more efficiently than you would be able to.
2. They Have a Greater Understanding of Your Business
Largely because they handle day to day operations for their clients, they have the ability to deep dive into your company’s finances. By doing this and sharing their findings with you, they will be able to help you come up with strategies that you should be using to improve your business’ operations. They will be able to do things like flag issues so you can properly deal with them. They will watch over your finances and help keep you from running into trouble.
3. They Will Help Manage Your Cash Flow
Accountants are capable of providing one of the most valuable services. This is especially true as it relates to their ability to look at your business’ operations to provide strategic advice, help deal with annual returns and to provide you with help with tax issues. However, their ability to help is limited by the amount of data they actually see. Because they aren’t looking at your daily operations or day-to-day cash flow, they aren’t going to be able to provide you with daily analysis and advice that you can use to improve your cash flow and achieve sustained growth.
You Need to Understand Your Business’ Needs
In order to identify and hire the right bookkeeper, you need to come to terms with your business’ needs. Here are some questions to think about:
What Type of Business Do You Own?
Knowing what kind of business you own and run is going to play a critical role in determining the kind of bookkeeping you will require.
How Many Transactions Do You Make?
Knowing if you have a large amount of daily, weekly or monthly transactions can dictate the kind of work the bookkeeper is going to have to keep up with.
What Software Do You Use?
Knowing what type of software (if any) you use is key to knowing whether or not they will be able to send you data securely over the Internet.
Do You Require Special Services?
If you require special services to help you get paid faster, such as chasing up clients, you will want to know whether or not the bookkeeper offers the service.
What Are Your Key Dates?
Knowing any key dates you have is important going into finding the right bookkeeper because you want to know if they are going to offer enough reviews and reports to satisfy your needs. For instance, having a bookkeeper offering both timely and accurate Profit and Loss reports might be key.