Get Help with Numbers
When you run a business, you constantly need to deal with numbers. Every business regardless of the size needs to record every single transaction including expenses, salary payments and sales among other things. In simple terms, the money coming in and going out of the business needs to be recorded.
You can do it on your own but it’s also a fact that most entrepreneurs don’t have the necessary training in bookkeeping. Therefore, businesses usually outsource this work.
This short guide is focused on the advantages of using bookkeeping services. In fact, we will say that it’s an essential part of creating and growing a business. Afterwards, we will explain how to go about hiring the right bookkeeper.
3 Reasons to Hire a Bookkeeper
If you have just set up your business, you might think that you can manage the books on your own. You might also feel that it’s enough to let your accountant review the numbers once in a while. However, hiring a bookkeeper has certain advantages. Here are 3 of them:
1. Save Time
If you do not have the necessary training in bookkeeping, you should leave it to the professionals. If you think that it only involves recording expenses, payments and receipts, you are wrong. Bookkeepers not only do these but also assign expenses to the right clients. They collect the required numbers and put them into the accounting software in order to make sense of these numbers. An experienced and well-trained bookkeeper understands the importance of recording transactions properly in order to create actionable business reports. An experienced bookkeeper with necessary training is much more efficient at it.
2. Understanding of the Business
Since the job of a bookkeeper involves dealing with accounts regularly, they have a deep insight into the finances of your company. With these insights, an experienced bookkeeper can help you take your business to the next level. They can be of great help by flagging issues in time. Simply put, they keep a strong watch over your finances and can help you remain clear of trouble.
3. Managing Cash Flow
The services provided by accountants is extremely valuable, especially related to annual returns, tax issues and strategic advice. However, accountants don’t look at your accounts every single day. On the other hand, good bookkeeper keeps a close eye on the accounts regularly. They can be of great help in keeping cash under control which is the foundation of business growth.
Hiring a Bookkeeper
Know What You Need
In order to hire the right bookkeeper, you need to have a clear understanding of your requirements.
It’s like hiring any other professional. Once you are clear about your requirements, you will be able to identify the right people for this role. Here’s a list of some things you need to think about in order to make the right choice.
Type of Business You Run
A service business or a retail company will have different bookkeeping requirements when compared to a manufacturing business. Figure out the number of transactions you will be making on a daily or weekly basis. Use it to determine the bookkeeping time you will need.
Type of Accounting Software
In case you use online accounting software, it will be easy for your bookkeeper to securely share data with you at any time you want. Also determine whether you need payroll services, credit control or debt collection services. Some bookkeeping companies also offer services to help you get money from your customers, at a cost.
Key Dates for Your Business
These typically include tax return deadlines, payroll days as well as scheduled meetings with the accountant. You will obviously want the accounts to be up-to-date and accurate before these key dates. The annual business performance reports publication is also a key date. Check with the bookkeeper if the reports are reviewed each month to get an idea of the performance of the business. One of the main examples of such a report is an accurate and timely Profit and Loss Report.