Help With Your Numbers
You need to start dealing with numbers just as soon as you start a new business. All businesses, no matter their size, need to keep records of all transactions. That includes salary payments, expenses, sales – in fact, all movements of money going in to and out of the business.
Although you can potentially do this yourself, the majority of entrepreneurs have not had any bookkeeping training. Many businesses outsource this task.
In this guide, we will be explaining why it is such a good idea to hire a bookkeeper and is an essential component of doing business. Then we take a look at how to hire the best bookkeeper to help with your business.
Three Important Reasons Why You Should Hire a Bookkeeper
When you are just starting a business, you may think it isn’t necessary to have someone take care of your books. You may think it is sufficient to have your accountant sort the numbers out once per year or once per quarter. However, there are some very good reasons why you should hire a bookkeeper. The following are three of the most important ones.
1. A Bookkeeper Can Save You Time
It is not a good idea to try to do this work on your own unless you are already knowledgeable about bookkeeping. Processing payments, expenses and receipts are just part of what is involved in bookkeeping. Professionals know how to assign certain expenses to specific clients. They take all of the numbers, input them into accounting software, and then make sense of everything. A good bookkeeper will know how to treat transactions in order to provide you with useful business reports. This is a skilled job, and a bookkeeper can do it a lot more efficiently and accurately than you.
2. A Bookkeeper Understands Your Business
Since bookkeepers deal with daily accounts, they have a thorough understanding of your business’s finances. When they share their insights with you, it can help you determine what direction your business should head in. They can also flag issues early enough for you to be able to deal with them. A good bookkeeper can keep a close eye on your finances and help you avoid problems.
3. A Bookkeeper Can Help You Manage Your Cash Flow
It is true that accountants provide valuable services, especially when it comes to tax issues, annual returns and strategic advice. However, they normally don’t see your books on a daily basis. A good bookkeeper can regularly keep tabs on your accounts. This will ensure that your cash flow is kept under control and is essential for the growth of your business.
Understand What Your Needs Are
The process of hiring a bookkeeper is just like hiring other professionals. First, you need to understand what your needs are. Then you can identify who will suit the role best. The following are some questions to consider:
What Kind of Business Do You Have?
For example, retail and service companies have different bookkeeping needs than manufacturing businesses.
How many transactions do you have on a monthly, weekly, or daily basis? That will help determine the amount of bookkeeping that you need.
Which Accounting Software Does Your Business Use?
Using an online accounting program can be helpful. That will allow you and your bookkeeper to securely share data at any time.
Do you need data collection services, payroll services or credit control in order to help you get paid quickly?
There are some bookkeeping companies that will chase down the money that you are owed by customers, at an extra charge.
What Are Your Company’s Key Dates?
Key dates can include scheduled accountant meetings, tax return deadlines and payroll days. Before each of those days, you will want your accounts to be up to date and accurate. Business performance reports are also tied to key dates. Ask if the bookkeeper reviews business reports on a monthly basis to see how your business is performing. One example would be an accurate and timely Profit and Loss report.