Running a business and developing a product are entirely different sets of skills than accounting and bookkeeping. There is no shame, then, in getting a little outside help to take care of one of the most important parts of the business. This guide is here to help business owners find out why they might want to outsource their bookkeeping, and what to consider when hiring a bookkeeper.
Reasons to Outsource Your Bookkeeping
- Saves time and resources. Accounting for every penny takes detail-oriented, time-consuming work. Hiring an external bookkeeper frees up your time to go back to running the rest of the business without distractions.
- Added expertise. An external bookkeeper’s profession is built around making sure accounts are all correct. They know their stuff inside and out. This means that they won’t make the sorts of mistakes business owners can tend to make, that waste both time and money. It also means that they can provide an outside eye on your business accounts, potentially saving you even more money.
- Cost-effective. Hiring an internal bookkeeper may seem like the same solution but hiring another employee will cost your company more than hiring an external bookkeeper whose retirement, vacation days, taxes, and wages are all taken care of by their own company. More likely than not, your small business doesn’t have enough regular accounting work to justify hiring a full-time employee.
- More focus on growth. While the bookkeeper handles the expenses, taxes, and accounts, you can get back to growing your business. The free time can be spent on designing a new product, increasing sales, achieving business goals, creating and executing a new marketing approach, or defining your brand. With one less thing on your plate, you have more energy to put into improving every other aspect of your business.
- If accounting or bookkeeping isn’t your forte, it may cost you hours of sleepless nights and unnecessary stress. Hiring an external bookkeeper means you can put your worries to rest and trust the skills of a professional.
What You Need to Consider Before Hiring a Bookkeeper
- Make sure that any bookkeeper or accounting firm you hire has the required state, federal, and professional qualifications. Your accounts are the most important part of your business and you don’t want to leave them in the hands of someone under-qualified.
- Customer testimonials. Ask other businesses and clients of a particular firm what their experience is with these accountants. Other businesses offer you a more truthful and blunter appraisal than the firm itself.
- Familiarity with your Every business is different and your market may have different requirements for how your accounts need to be run. Make sure the bookkeepers you hire are familiar with your field and how your business model works.
- Though an external bookkeeper is more cost-effective than hiring an in-house employee, be sure to consider your own budget. You don’t want to go bankrupt just to keep the accounts in line.