Why Hire a Bookkeeper – 5 Simple Reasons
As a business owner, do you sometimes feel overwhelmed by all the financial tasks you have to take care of? Does the tax season send a cold shiver down your spine? If this sounds like you, why not consider hiring a bookkeeper?
From invoicing and collections to tracking expenses and preparing taxes, bookkeeping tasks can be challenging to handle on your own. This is where a bookkeeper can help!
What is a bookkeeper?
A bookkeeper is a professional who helps manage a company’s financial records. They are responsible for recording all financial transactions, including purchases, sales, receipts, and payments.
While you might be able to do your bookkeeping independently, it’s not recommended. Why?
Because it’s easy to make mistakes – and those mistakes can be costly. A bookkeeper, though, has carefully studied all the relevant laws and processes and knows how to avoid errors. They take care of all the financial details so you can focus your energy on what matters most, namely making profits.
Why do small businesses need to hire a bookkeeper – 5 Simple Reasons
1. It saves time and money
Entering data is time-consuming – time that you’re unlikely to have as a business owner. But by keeping your financial records organized and up-to-date, a professional bookkeeper can help you avoid costly mistakes.
For example, you’re preparing your taxes and realize you’ve been overpaying on your GST for the past year. If your books had been properly maintained, you would have caught this mistake sooner and saved yourself a lot of money.
A bookkeeper can also help you find opportunities to save money. For example, they can help you set up a system to track expenses. This way, small businesses can easily see where their money is going and make needed changes to eliminate unnecessary spending.
And by staying on top of your financial records, a bookkeeper can help you avoid late fees and penalties. Your business will not have to deal with late payments, saving you a lot of money in the long run.
2. Provides peace of mind
When someone else takes care of your financial records, you can relax and focus on other aspects of your business. Running a business can be demanding, with little or no time to spare.
But when you have a professional bookkeeper, you can offload some of the work and have peace of mind knowing that your financial records are in good hands. This way, you can focus on what you’re good at and leave the bookkeeping to someone else.
It’s uncommon to find business owners who are good at both creative and financial tasks. Most people tend to be better at one or the other. If you’re good at the creative side of running a business, then it makes sense to leave the financial side to someone else.
Companies will also need help formulating a business strategy and marketing their products or services. And, if you’re spending all your time entering data, you’re not going to have the time to focus on other important areas.
3. Allows you to make better business decisions
When your financial records are organized and up-to-date, you can easily see where your business makes and spends money. This information is critical when it comes to making sound business decisions.
For example, let’s say you’re thinking about expanding your business. Before making any decisions, you need to know if your business can afford it. A bookkeeper can help you analyze your financial situation and give you the information you need to make an informed decision.
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4. Ensures compliance with government regulations
Your accounting books need to be immaculate. Why? Because the government requires it. And as the owner of the business, it’s your responsibility to ensure that your financial records comply with government regulations.
In Canada, the Canada Revenue Agency (CRA) has very specific rules about how financial records need to be kept and reported. If you don’t follow these rules, you could have some hefty penalties. (1)
The Internal Revenue Service (IRS) has similar requirements in the US. All around the world, businesses are required to follow the rules. (2)
A bookkeeper can help you stay compliant by keeping your financial records up-to-date and accurate. They know the ins and outs of accounting laws and can quickly spot a problem before it grows into something bigger.
5. It makes tax time a breeze
Tax season is stressful. But it doesn’t have to be – if you allow a professional bookkeeper to take care of all the paperwork and ensure that your financial records are in order.
This way, come tax season, all you have to do is provide your bookkeeper with the information they need, and they’ll take care of the rest. No more scrambling at the last minute to get your taxes done.
A small business owner doesn’t have to dread tax season anymore. Hire a bookkeeper and let them take care of everything for you.
What to look for in a bookkeeper
Since their role is crucial to having a successful business, it’s essential to take your time and choose someone qualified and experienced.
Here are a few things you should consider when choosing a bookkeeper:
- Qualifications – Do they have the necessary education and experience?
- References – Do they have any good references from past clients?
- Fees – How much do they charge, and is it within your budget?
- Availability – Do they have the time to take on your account?
- Personality – Do you get along with them, and do they seem like someone you can trust?
In addition, you must ensure they are tech-savvy and can use the latest bookkeeping software. This is important as it will make their job easier and enable them to work more efficiently.
Hire a bookkeeper who knows their way around accounting programs like Xero, MYOB, and QuickBooks. They should also know add-ons like Envoice, an OCR program that helps quicken data entry.
And once you’ve hired the perfect person, ensure you have a good working relationship with them. After all, this is the person you trust to keep track of your finances.
Are you ready to hire a professional bookkeeper to help your business succeed? Check local directories or ask for recommendations from friends and family. Or why not consider hiring a qualified bookkeeper on freelancing platforms like Upwork?
Hiring a bookkeeper can save you time, money, and a lot of headaches, and it is guaranteed to be one of the best decisions you make for your business!
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