Bookkeeping can be time-consuming and sometimes even confusing, which is why many entrepreneurs decide to hire a professional bookkeeper to take care of the whole process. You may be wondering if you really need to get one, or if you should just stick with trying to do it yourself. We’ll go over some of the best reasons why you should opt for the services of a professional bookkeeper so that you can make the best decision possible!
Why do you need a professional bookkeeper?
Not everyone knows what a professional bookkeeper does. Basically, we’re accountants that work at small businesses to keep the financials in order and make sure there’s nothing wrong with them. Our job may not seem as important as other jobs like content marketing or HR, but keeping finances organized can be really important. For example, if I noticed that the company was using cash in excess of what it should be, then I would tell the manager and they could potentially save money or track down where the money was going.
Bookkeepers are also responsible for preparing taxes (both personal and payroll) and filing them correctly so no one gets audited by the IRS.
How can you choose the right one?
With thousands of professionals across the country, it can be difficult to know where to turn when looking for the right individual. Check with friends and family members or fellow entrepreneurs to see if they have any recommendations. You may also want to go through your budget or records to help narrow down the search. If you don’t have anyone in mind, you can research local colleges and universities to find a list of students graduating with degrees in accounting or finance. Once you’ve done that, find out if they offer internship opportunities so that you can get an idea of their abilities firsthand before hiring them.
What does a good relationship with an accountant look like?
A good relationship with an accountant looks like:
-An accountant that listens to the client and makes recommendations in accordance with their needs.
-Accountants who want to work collaboratively.
-Accountants who are constantly up-to-date on changes in accounting and tax laws.
-Accountants who value trust, honesty, transparency, and integrity above all else.
6 signs that you need to hire someone else
If you’re running an online business and you’re feeling overwhelmed by how much there is to do in terms of both the day-to-day finances and the administrative tasks, it might be time to hire a professional bookkeeper. Or, if any of these apply to you, it’s definitely time:
I am often too busy or unavailable when tax season arrives each year. I have received warnings from government agencies about late payments. I don’t really know where my business stands financially because of the complexity of my books. I don’t have adequate equipment to manage my books myself.
5 tips on how to stay organized as an entrepreneur and minimize mistakes
If you’re an entrepreneur, organization might not be your strongest suit. You’ve got an entire company to deal with and that means keeping tabs on everything and staying on top of it all. The key? Stick to some helpful habits!
1) Write down EVERYTHING – You’ve heard this one before, but it really works. Keep a running list of everything you need to do in one place that you can refer back to when something comes up later in the day or week that makes you say oh yeah I need to remember this. 2) Practice delegation – This doesn’t mean throwing off all responsibility and passing it on. Instead, hand things off as much as possible so that YOU don’t get burned out.
When should you outsource accounting?
Many entrepreneurs decide to do their own accounting to save money. While there are many small business owners who can maintain their company books in Excel, they should reconsider and hire an accountant, or at least an experienced bookkeeper.
Should you teach your employees to manage finances?
Managing finances can be overwhelming, especially if it’s the only person in charge of doing so. However, there are some definite pros to giving employees responsibility over their finances. Not only will they feel more invested in the company, but they will likely be more motivated and more successful if they have control over their financial well-being. It will also make things easier on your end because you won’t need to go through as many checks to make sure everything is running smoothly. In short, both you and your employees will be better off if you teach them how to do this kind of work. It’s also worth considering what type of responsibilities would be best suited for an employee- with full accounting knowledge or those that are just looking for basic knowledge?
Is it OK to give up control over finances?
As the owner of your company, it’s important to keep control over what goes on with the finances. However, having a bookkeeper can free up time that you need to focus on other aspects of running your company. When you delegate some responsibilities in order to work more efficiently, you’re actually making room for things that can only be handled by the boss.