10 Reasons to hire a Bookkeeper
Consider a scenario where your business is on its way from idea to actual business. There are many, many things to think about and consider so here are 10 reasons to hire a bookkeeper.
And one of them may just include that all-important decision of when to bring in outside experts to assist you with some of the operational functions that go into running a business.
Those functions almost certainly include the financial aspect of your business. While you may not need – or want – an accountant, you could and should at least consider a bookkeeper to help with the various financial aspects. Your only other alternative is to become a bookkeeper yourself so that you understand every aspect of your business! And that’s just not realistic.
Here are 10 reasons why you should definitely consider hiring one:
- Keep your focus on core business needs
A new business needs the attention of its founder. Your time should be devoted to strategy, marketing, funding and other key areas that require your focus over the daily operational tasks of a business.
- Stay out of what you don’t really know or understand
Not many founders have backgrounds in finance or even a working knowledge of accounts payable, accounts receivable and taxes. It’s better that a professional who took courses and was certified in these areas handle those aspects of your business. Mistakes will be less likely, as well as issues that could cost you more money.
- Calibrate a work-life balance.
You’ll have no time left at the end of the day or week for yourself or your loved ones. If you try to do everything yourself. Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out on what you are doing.
- Get a different perspective on the business
Although you may believe you have a good idea about the state of your start-up during the development phase, it helps to have another pair of eyes on this. Your bookkeeper can put the financials in order and run reports showing how you are doing each month.
- Escape the tedious aspects of business
It’s hard to imagine that the financial aspects of your business make you excited. You likely have no passionate feelings about tallying up payroll or writing cheques to pay the bills.
- Make sure everything is paid on time
Between travelling, keeping the business moving forward, putting out the daily fires that pop up and staying balanced, something most likely gets left out along the way. And that often ends up being the bills that need to get paid.
- Ensure correct tax filings
The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. It’s ideal to find a bookkeeper who can handle taxes a well as payroll and other financial issues.
- Maintain cash flow
If you are busy, you may not even realise there are outstanding payments from your client base. Any late payments could infringe upon the cash flow you need to keep your business ticking along. A bookkeeper can stay on top of this and send out reminders to make sure your cash flow remains optimal.
- Resolve conflicts of interest with any business partners
If there is more than one founding partner, issues could arise where each has some idea of how the money should be spent and how to easily access it. A bookkeeper should be the gatekeeper of the money, creating the necessary approval processes that stop partners from just withdrawing money.
- Reduce the cost of financial obligations
Although you may think you save money by doing everything yourself, the fact is that a professional bookkeeper actually saves you more. That’s because there is a reduced level of risk for human error, lack of knowledge, missed payments and tax obligation due dates and delayed accounts receivable.
From the time and money savings, to the focus on expertise and greater cash flow, a bookkeeper makes good business sense for your business!