Should you hire a bookkeeper? The question must be asked by every business owner at one point or another. Within a business, three groups of people can essentially perform the bookkeeping: a business owner, an employee, or an independent contractor.
While a business owner may want to manage his bookkeeping to reduce costs, it is not a wise decision to do this long-term. Instead, many business owners will find that outsourcing their bookkeeping duties to a highly qualified independent contractor will prove to be a valuable business choice.
But why? Why should a business owner hire a bookkeeper?
Improved cash flow management and enhanced operational efficiency
One of the primary responsibilities of a bookkeeper is managing cash flow. Throughout the month, cash comes in, and cash goes out. If a business does not have enough cash on hand to cover expenses when they are due, this could hurt the business.
For instance, payroll is usually one of the highest expenses a business will encounter. If there is not enough cash in the bank to cover the payroll expenses, employees will not get paid on time. Such an event can prove to decrease morale and hurt the momentum of a business.
The previous example is only one on a long list of examples. Hiring a highly qualified bookkeeper will help to improve cash flow in the areas of billing, invoicing, and accounts receivable aging management, as well.
By increasing and managing cash flow, the operations of a business will function like a well-oiled machine.
Time management and reduced stress
As was stated earlier, it is not wise for a business owner to manage his own books. His time is better spent working on his business rather than working in his business. If the business owner’s time is tied up in categorizing and recording transactions, he will have little time to make sure his business succeeds.
When a business owner seeks to manage his books and run his business, he will encounter a great deal of stress. This is especially true as the business grows. Hiring a highly qualified bookkeeper frees up time and eliminates stress.
Growth strategy and professional expertise
Good business decisions are based on timely, reliable, and relevant financial reports. Thus, bookkeeping is the foundation for informed business decisions. When bookkeeping is not done correctly, a business will suffer.
However, when working with a highly qualified bookkeeper, the books will be in order. The chart of accounts will be set up correctly. Transactions will be recorded to the proper accounts. Parent accounts will be taken advantage of to ensure accuracy and clear communication of expenses.
Such occurrences aid the business owner in the growth strategy of the organization, and the bookkeeper’s expertise will prove to be a remarkable benefit.
Tax Preparation
Some bookkeepers and organizations also specialize in tax preparation. The keyword recently mentioned is “some.” Not all bookkeepers can prepare taxes. However, the ones who do could be a significant asset to a business. They can take the business owner from the day-to-day bookkeeping to the quarterly and yearly tax filing, guiding the business owner every step of the way and throughout the year.
