Starting a business you\u2019re passionate about is a rewarding venture, but not every aspect of running a company is appealing. Hiring a bookkeeper ensures you have a professional managing your finances. This frees you up to run the daily business yourself. Below, we\u2019ll answer the question, \u201cWhy should I have a bookkeeper?<\/p>\n
A bookkeeper manages the financial side of the business, freeing you up to work on other tasks. Your business\u2019s bookkeeper records all financial transactions so there are no mistakes or surprises come tax time. They work behind the scenes to keep your business running smoothly.<\/p>\n
A bookkeeper keeps track of all of the finances relating to your business. This means they document things like:<\/p>\n
They keep files on the daily, monthly, and periodic financials. This type of regular record-keeping helps if you need future financing. It also ensures you\u2019re ready for tax time. You can hand the information that a bookkeeper compiles to your accountant.<\/p>\n
A business just getting off the ground might seem easy to run, but as it grows, you might find that you can\u2019t manage everything yourself. Or maybe you don\u2019t have the mind for math and finances. In both of those cases, you\u2019ll need to hire a bookkeeper.<\/p>\n
You need a bookkeeper if your business has so many different parts that you don\u2019t have the time to dedicate to the financial side of things. You don\u2019t want to get behind in invoicing customers, paying employees, and keeping records of bills and receipts. A bookkeeper will do all of this for you.<\/p>\n
So, what are the benefits of hiring a bookkeeper? It\u2019s tempting to want to do it all when you\u2019re running a business, but that gets overwhelming. There are many benefits of working with a bookkeeper.<\/p>\n
Instead of spending hours each month sorting your business finances, you\u2019ll have someone else to do that. This frees you up to do other work.<\/p>\n
When you\u2019re juggling all aspects of your business, it\u2019s understandable that some things will slip through the cracks. However, when those things are unpaid invoices, your business is going to lose money.<\/p>\n
Hiring a bookkeeper means there\u2019s someone who keeps an eye on all of the invoices: when they\u2019re sent out, when they\u2019re due, who has paid, who still owes, and more. Most importantly, if someone doesn\u2019t pay, the bookkeeper will send reminders and issue fees until that money comes in.<\/p>\n
A bookkeeper manages your daily finances, so they\u2019ll immediately see if there\u2019s a problem with cash flow. They\u2019ll let you know if you\u2019re spending too much or not making enough profit.<\/p>\n
When you have a bookkeeper managing your finances, you don\u2019t have to worry about money at all. You can focus on your business knowing that the bookkeeper is keeping an eye on your income and expenses.<\/p>\n
A bookkeeper keeps your business finances in order so you don\u2019t have to scramble to get everything ready at tax time. You\u2019ll also have a good idea of your business status so there won\u2019t be any surprises.<\/p>\n
In case your business gets audited, you don\u2019t have to worry about getting your finances together. The bookkeeper\u2019s documents will supply all of the information you need.<\/p>\n
When you\u2019re trying to get loans to support or expand your business, you need financial documents to back up your claims. The bookkeeper will prepare everything you need for these meetings.<\/p>\n
The bookkeeper knows not only the finances for your business but also the tax credits and deductions you can apply for. This means you\u2019ll save money and possibly pay less in taxes than you would without this professional help.<\/p>\n
Bookkeepers and accountants can both help you manage the financial side of your business, but they\u2019re very different jobs.<\/p>\n
A bookkeeper prepares the financial information by managing your daily finances. They might use billing and invoicing platforms for your business. They also compile financial statements that you\u2019ll need for taxes, fundraising, bank loans, and more.<\/p>\n
Accountants interpret the information that bookkeepers compile. They review your financial reports, help with tax issues, and can help you streamline or change your financial operations.<\/p>\n
Bookkeepers don\u2019t need a license for their position, though they can earn certificates in certain areas of expertise. Accountants earn certification from the Association of International Certified Professional Accountants (AICPA<\/a>). This is just another reason why it is worth it to hire a bookkeeper.<\/p>\n You can hire a bookkeeper at any time, but it\u2019s best to do it soon after starting your business. They\u2019ll have a chance to get familiar with your work and business practices and help you stay on top of things. If you\u2019re trying to do it all on your own, you might find yourself getting behind quickly.<\/p>\n It\u2019s important to trust your bookkeepers since they\u2019ll have access to the inner workings of your business. You can find a bookkeeper<\/a> through local bookkeeping firms. You can also ask professionals you know if they recommend anyone specific.<\/p>\n Hiring a bookkeeper is just like hiring an employee. Whether you find them through a firm or a referral, you want to check their work history and resume. Ask for references to contact. Before you finalize the hire, hold a meeting with your accountant so they can meet and you\u2019ll see if it\u2019s a good partnership.<\/p>\n You don\u2019t have to hire a dedicated bookkeeper to keep your business running smoothly. You might prefer to outsource the job by employing a fractional bookkeeper. You\u2019ll only pay when you need them.<\/p>\n Finding a fractional bookkeeper opens your search from local bookkeepers to remote workers as well. You can search for a professional who knows more about your specific industry.<\/p>\nWhen Should You Hire a Bookkeeper?<\/h2>\n
Finding the Right Person<\/h2>\n
Is a Fractional Bookkeeper the Solution?<\/h2>\n
Conclusion<\/h2>\n