Many small business owners keep their own books. Or, they rely on an employee, family member, or friend that has a basic knowledge of the process.
This arrangement can work, and often makes sense when a business is in “start-up mode” and cash is tight.
The problem is that many business owners continue to take this approach as their business begins to take off, and they eventually run in to problems. Below are several reasons why it is usually beneficial for a business to work with a trained, professional bookkeeper—whether that means hiring a new employee or working with an outside provider:
1) Hiring a bookkeeper reduces stress. Most business owners that I’ve worked with dread managing the books. It’s stressful and can be confusing. Hiring a bookkeeper allows you to outsource the headaches and the stress.
2) Hiring a bookkeeper allows you to focus elsewhere. If you’re a business owner, chances are you didn’t start your own business so that you could worry about creating Profit & Loss statements. You need to know where you are so you can get to where you are going. Working with a bookkeeper means that you can focus your time and energy on growing your business.
3) Hiring a bookkeeper saves you money. A professional bookkeeper will often spot opportunities to save money – consolidating inventory, or reducing interest payments, for instance. If you’re not trained as a bookkeeper, you may be missing out on these savings opportunities.
4) Hiring a bookkeeper reduces the likelihood of fraud. As your business grows, it is important to be on the lookout for fraud—whether perpetrated by customers or employees. While we’d all like to believe that “it could never happen to me”, fraud impacts thousands of businesses every year. A trained bookkeeper will mitigate this risk.
5) Hiring a bookkeeper avoids headaches at tax time. It’s tax season, and many businesses are in the midst of preparing and filing their returns. This time of year can be a tremendous headache, but a professional bookkeeper can make your life much easier by handling the details so that you don’t have to.
Questions or comments? Need bookkeeping help for your business? Please get in touch with me today!