Are you finding it difficult to manage your company’s finances on your own? Here’s why hiring a bookkeeper may be the solution you need.
Small business owners are used to handling many different tasks on their own. They take care of marketing, sales, inventory, customer service, and more. Many also manage their cash flow independently. They balance the books and ensure the finances are all in order.
As a small business owner, chances are you’re overworked. If that’s the case, delegating your tasks will help you immensely. Let’s start with bookkeeping. Letting a professional handle this administrative piece will benefit you in more ways than one. Read on to learn more.
What Do Bookkeepers Do?
Before you decide whether to hire a bookkeeper, it’s important to note what one does. Bookkeepers are financial administrators. They consolidate accounts and follow up on payments and billing reminders. They also process supplier payments and payroll if the situation calls for it. If you think this sounds like the job of an accountant, you’re not wrong.
Nonetheless, there is a difference between an accountant and a bookkeeper – the former functions as a high-level financial analyzer. Accountants perform forecasts, auditing, and tax preparation. They’re more capable of offering financial advice and insights. Bookkeepers, on the other hand, are more inclined to keep a record of your everyday financial transactions. They do not analyze the numbers or offer guidance on how to improve them.
Do You Need a Bookkeeper?
In some situations, the DIY route might not be your best option. Bookkeeping involves monitoring various accounts, bills, and invoices. You’ll need to organize all your books and improve your business’s money management. Performing your own bookkeeping duties may seem like a good method to save money. However, you may be doing your company more harm than good, especially if you are overstretched or unskilled in the task.
A hired bookkeeper will help you:
- Save time
As a business owner, time is your most precious commodity – use it wisely. Don’t waste it on clerical tasks. Make the most out of your time by devising ways to grow your company. When you hire a bookkeeper, you’ll have more moments to spend on non-work activities. This professional has efficient systems in place for a smoother bookkeeping process.
- Reduce errors
Logging receipts, paying bills, and filing taxes are mundane duties. As such, if you find more joy in creating handmade jewelry or baking cakes, let a bookkeeper handle the nitty-gritty part of the business. This way, you’ll avoid making accounting mistakes and late payments.
- Save money
Reducing errors goes hand in hand with saving money. Hiring a bookkeeper means you’ll pay your bills and file your taxes on time. An expert is also more adept at noticing trends, duplicates, and unnecessary charges. Clean books will mean cheaper CPA fees!
- Make more money
Business owners usually don’t have a clear snapshot of how their company is doing. They understand that there’s money in the bank and sales are good. It’s crucial for you to have complete financial clarity in order to grow your business.
Is Hiring a Bookkeeper a Smart Decision?
As with most business-related questions, there’s no one-size-fits-all answer here. Your needs and circumstances will determine if hiring a bookkeeper will be worth the investment. However, there’s no denying that an expert will help you balance the books better than you can. And if you find yourself struggling to keep up with the financial administration part of business, a bookkeeper is a viable solution. Coastal Bookkeeping & Mobile Notary Services is ready to help. Get in touch today.