Benefits of Hiring a Bookkeeper as a Business Owner

Owning a business takes a lot of effort and dedication. This is why many business owners complain bitterly when they realise business bookkeeping is as crucial as the business itself. You are trying to please your customers, yet you must still record all the financial transactions. It's tiring, right? Of course. You can continue the bookkeeping or outsource it to a professional bookkeeper.

A bookkeeper does more than keep the books in a small business. They also keep track of sales, purchases, payments, and receipts and store them so accountants can access them. This article will explain why you should hire a bookkeeper for your business. Also, we will delve into how to get the best bookkeeper and ways to ensure they deliver top-notch service. Let's get right into it.

Who is a bookkeeper?

A bookkeeper keeps track of a business's financial events, such as purchases, expenses, sales revenue, invoices, and payments. They will write down financial information in general ledgers, which are used to make the balance sheet and income statement.

Bookkeepers ensure a company's financial records are correct and easy to review. Their work is an essential part of running a good business, which can have a lot of transactions in a single day, let alone a week, month, fiscal quarter, or year.

6 Reasons you need a bookkeeper for your business

Business owners might feel like they can do without a bookkeeper for reasons best known to them. However, a one-time trial can show you many important things a bookkeeper can do for your business. Let's check out the top six reasons you need a bookkeeper.

 

 

1. Accurate Bookkeeping

The stress of searching for an essential business transaction history at the last minute can result in missed deadlines and minor faults. Bookkeeping consistently assists businesses of any size to avoid costly errors by providing accurate financial dealings.

You can keep your records in order if you keep up with your bookkeeping regularly, do not procrastinate, and do not wait until the very last minute. Over time, it will make it much simpler to locate the specific pieces of information you require in a concise amount of time.

2. Cost Savings

Each month, you devote numerous hours to bookkeeping and other finance-related duties. You consistently put it last because of how long and tedious it is. Then, when the deadline for submitting your taxes unexpectedly approaches, you waste a lot of time.

Time spent on bookkeeping and other administrative tasks prevents you from expanding your firm. For instance, if you do the previous week's bookkeeping on a Monday. You start, get confused, get it right, and before you know it, you spend the whole day on bookkeeping.

This will obviously affect your business, as you will need more time to cater to them. If there were a bookkeeper, you wouldn't worry because they are professional and know their way around financial issues.

3. Time Savings

Time is of the essence for you as a business owner. As a business owner, your time is better spent focusing on growth than paperwork. You'd want to take a trip to relax, hang out with your loved ones, and even work on your golf swing.

Having a professional take care of your books will give you more time to focus on running your business and living your life.

4. Tax Preparation

A bookkeeper can assist you in getting ready for tax season. They are well-versed in financial matters as well as the day-to-day operations of the company.

They will ensure everything is in order by handling all the financial issues, so you won't have to worry about anything. Imagine losing a business deduction because you don’t know about it. You don’t want to lose your dollars out of ignorance because every penny counts.

5. Better cash flow management

Few things are counterproductive to a company's bottom line than hard labour that goes unrewarded. The only downside to being so busy that you must remember to send invoices to clients on time is that it will negatively impact your cash flow.

With the help of a bookkeeper, you can be assured that you will always have enough money to cover your present expenses and need to remember your company's future growth.

6. Improved business operations

Employing a bookkeeper can benefit your company's management and financial health. They can ensure that all areas of your financial situation are managed effectively by routinely addressing the accounting responsibilities that you have given them. If you want your business operations to run smoothly, consider hiring a bookkeeper.

5 Important skills your bookkeeper must possess

When choosing a bookkeeper for your business, you must select one qualified and skilled for the role. These are five skills a bookkeeper must possess to run your business bookkeeping smoothly.

 

1. Attention to details

Bookkeepers can improve their accuracy when handling the financial data of their organisation by paying careful attention to detail. This skill can also prevent issues or faults in a company's records from occurring.

Because companies frequently use bookkeeping files to make crucial business decisions, bookkeepers must provide their employees with accurate data.

2. Critical Thinking

Bookkeepers need to think critically to help discern the narrative behind the statistics. In other words, when irregularities or problems arise, bookkeepers can recognise them and ascertain the factors that led to their occurrence.

3. Excellent communication skills

A bookkeeper must have good communication skills because miscommunication can ruin a business. They must deliver information to clients in a manner that is professional and easily digestible. This should happen regardless of the mode of contact used (in-person, telephone, or electronic).

So, depending on the size of the bookkeeper's company, they will need to successfully interact with other people and articulate themselves to the team members.

4. Time Management

A bookkeeper’s other skills and talents remain valuable if they can efficiently prioritise and organise their responsibilities. This necessitates maintaining a structured schedule and outlining their top priorities, deadlines, or tasks that need completion within the expected time frame.

Furthermore, business owners must prioritise activities based on their significance and business significance. Developing practical time management skills is essential because, as bookkeepers, they'll likely juggle multiple tasks and engage with various stakeholders. These skills can substantially boost their productivity and overall effectiveness.

5. Mathematics

Yes! You saw it right. Every bookkeeper needs to have mathematical skills to perform well in the role. Bookkeepers that function professionally are at ease when dealing with numerical data. We are not suggesting that they need an exceptional aptitude for mathematics.

However, they will need to have a basic understanding of addition, multiplication, and division to prepare themselves for a job in bookkeeping. Tools like calculators, spreadsheets and software can quickly help with mundane activities.

How to hire an ideal bookkeeper for your business: 5 Easy Steps

Business owners understand that hiring a bookkeeper can be tedious and tiring. Is he qualified? Can he do the job? Will he help my business? These are questions business owners often ask themselves. For this reason, keep reading to learn five ways to hire the ideal bookkeeper for your business.

1. Experience in your industry

Because bookkeeping practices vary by industry, the bookkeeper you select must have proven expertise with businesses similar to yours. If they've only ever worked with clients in the restaurant business, they might need help understanding how to keep adequate records for a charitable organisation.

Don't be scared to inquire about a bookkeeper's years of experience—and perhaps even ask them some technical questions.

2. Membership in a professional association

A bookkeeper can do without a certification from the CPA Australia (Certified Practising Accountants Australia) to prove how skilful. However, will it not bother you if you hire someone with no membership in a professional association?

The membership is a way to keep your mind at rest that your employee is reputable and secure. Therefore, ensure you ask questions from your incoming bookkeepers about the associations they belong to.

3. Trust and security

Bookkeepers can access the most sensitive personal and secret information in a business. Therefore, you must have complete confidence in your bookkeeper.
Before employing a bookkeeper (or a bookkeeping service), ask all the questions concerning their policies and practices for protecting your financial information. If you don't trust someone to be completely honest and upfront all of the time, you should look for a new bookkeeper.

4. References

When determining the type of bookkeeping you require, look for referrals and trustworthy people. Many local bookkeeping services can provide recommendations that will assist you in hiring the best bookkeeper in your area. Regarding referrals, request testimonials from previous clients to learn about the bookkeeper's reputation.

5. Knowledgeable

Your business strategy, like technology, is likely to undergo continuous change. The cloud has altered many aspects of business operations and record-keeping. Therefore, your bookkeeper must be up-to-date on these innovations so that you can reap the benefits and save time and money.

A qualified bookkeeper will be knowledgeable about basic bookkeeping tasks. In addition, they should know how to adapt these standards to your field. They should also be able to monitor your company's financial performance, evaluate it against your competitors, and report on any significant trends or differences.

4 Places to find a qualified bookkeeper for your business

When hiring a bookkeeper, you will find a variety of bookkeepers to pick from. However, it will make your job easier if you can focus your search first. While you can look for bookkeepers online, there may be more effective ways to discover a reputable one. Here are four effective methods for locating suitable bookkeepers:

 

1. Utilise your social media accounts

The best bookkeeper you're looking for might be standing right beside you. Start by requesting recommendations from friends or family members who own small enterprises.

Remember that hiring a bookkeeper can be subjective, so what works for your best friend's PR firm might not be appropriate for your manufacturing firm. Consider the various business structures as well. A corporation with ten employees might not need the best bookkeeper for a sole proprietorship.

2. Request references from friends and business associates

If you own a small business, you may have friends who own small businesses, or some of your suppliers may be small businesses. Someone in your professional or social network is almost certainly dealing with a bookkeeper.

If this is not the case, consult with your banker or personal financial advisor. They may be aware of accounting firms that operate with businesses similar to yours.

3. Consult with government and corporate organisations

Many nations' economies rely heavily on small companies. Governments like to promote their growth as a result. Utilise the networks of business consultants accessible to you as a small business owner to assist with decisions like picking the best accountant.

Local chambers of commerce and nonprofit organisations are frequently willing to provide you with advice as well. Utilise them; they are there to assist you and often offer free counsel.

They can be advantageous settings for networking and speaking with other business owners. Once you've done this a few times, other business owners might likely recommend a bookkeeper.

4. Online Platforms

The internet has transformed the way small businesses find talent. Online job platforms like LinkedIn, Indeed, and Glassdoor are excellent places to start your search for a bookkeeper. These platforms allow you to post job listings, review candidates' profiles, and connect with potential bookkeepers who match your criteria. Be sure to use keywords like "bookkeeper," "accountant," and "finance professional" to narrow down your search.

What is the cost of small business bookkeeping?

The cost of hiring a bookkeeper varies to a lot of things like location, business type and bookkeeping style. Bookkeepers typically charge hourly, with rates ranging from $25 to $60 per hour, depending on the level of expertise and services the bookkeeper provides. When more comprehensive support is required, such as financial reporting or payroll processing, the hourly rate may increase to at least $70.

There are bookkeeping services that provide small businesses with individualised, fixed-price packages designed to meet their unique requirements. For a predetermined amount per month or year, these bundles include more involved services such as bank reconciliation, accounts payable and receivable management, and financial reporting.

Find a group of knowledgeable individuals who can best cater to your requirements. For instance, if you run a larger company that has a lot of employees, transactions, and inventory, you might need a more experienced bookkeeper and, as a result, pay higher fees for their services.

Choosing between a firm, an agency, or a freelancer

Is your company, though small, still experiencing rapid expansion? Hiring a full-time bookkeeper right now may not make financial sense. Instead, consider outsourcing your accounting to a third-party firm or hiring an in-house bookkeeper part-time.

Freelancers

Hiring a bookkeeper in your area can be a cost-effective way to get expert help with your books.

• Drop by your workplace occasionally.
• Take charge of your physical records.
• Keep your books from falling behind.

However, there are some potential drawbacks to this. If your bookkeeper gets sick or takes time off, you need someone to handle the books. Worse, if they suddenly leave, it can be difficult and time-consuming to transition to a new bookkeeper and figure out where things stand financially. Your part-time bookkeeper may need help with your rapid expansion, especially if they have other clients.

Independent bookkeepers

A third-party bookkeeper or an online accounting service is another low-cost alternative. In addition to being digitally savvy, these companies are typically remote. They can help you save time and money by digitising your invoice and receipt processes.

Having someone available to take care of your books at all times is another significant benefit of hiring an outside bookkeeping service. Even better, most outsourcing companies also provide supplementary services, such as payroll, accounts payable, and accounts receivable management, to accommodate your expanding business's evolving bookkeeping needs.

So, the choice is all yours. Check out your business needs and financial health. Then, you can choose one that will help your business financially and keep you from breaking the bank simultaneously. Also, remember to check the size of your business. You can’t have a big company and hire a freelancer to help with your bookkeeping; it’s a wrong move.

In need of a professional bookkeeper? Try The Kalculators

Your time as a business owner is worth a great deal. Therefore, although it is essential for you as a business owner to be involved in all aspects of your company, hiring an accountant or bookkeeper enables you to remove many time-consuming tasks from your plate, giving you more time to plan the next strategic move for your company.

Hiring a bookkeeper will improve your company's financial health, reduce your time on administrative tasks, and clarify your vision for your company's future. A partnership between your bookkeeper and a tax specialist can provide you with the most effective financial strategic planning for your company.

The Kalculators has the best solution for your business bookkeeping because they can help your company succeed. In addition to tax preparation, The Kalculators provides a solution for small businesses that involve bookkeeping that is individualised to their specific needs. You will have the greatest financial and business growth by hiring a company like The Kalculators that takes your business first.

Frequently Asked Questions:

Why should I consider hiring a bookkeeper for my business?

It is crucial to consider hiring a bookkeeper for your business at this time and age. With a bookkeeper, your financial records will always be up-to-date and accurate. Because they handle the day-to-day transactions, expense tracking, and report preparation, you can focus on the most critical aspects of running your company. Their knowledge is analogous to a safety net in that it assists in preventing monetary mishaps, improves decision-making, and ensures that your company complies with ever-changing tax laws and regulations.

What does a bookkeeper do for my business?

Consider them the company's financial watchdogs if it helps you understand them better. They are responsible for keeping meticulous records of every monetary transaction, balancing the accounts, supervising payroll, and compiling the financial statements. The results of their work provide a crystal-clear picture of your company's financial state, making it much simpler to create a budget, make projections, and deal with tax obligations.

Can't I handle my business finances on my own?

You can always give it a shot if you have the knowledge and skills to handle it correctly. However, hiring a bookkeeper to avoid mistakes and errors with your financial records is better. Regarding financial management, these experts bring their expertise, precision, and efficiency, thereby reducing the likelihood of making mistakes and freeing up more of your valuable time for strategic business activities.

Are bookkeepers knowledgeable about changing financial regulations?

You can be sure that the bookkeepers are closely monitoring everything. They keep themselves up-to-date on the constantly changing financial regulations and tax laws, ensuring that your company complies with the rules and avoids potential penalties or legal issues.

How do I find the right bookkeeper for my business?

Take into account their credentials, experience, and familiarity with the ins and outs of the industry. Look for certifications and get recommendations or referrals from reliable sources.

Can I outsource bookkeeping services?

Yes, you can. This is the regular practice among many companies. You can work with specialised firms or independent professionals to handle your business's financial matters. It is a cost-effective way to access expert financial support while maintaining flexibility in your staffing, which is one of the advantages of using this method.

Can I hire a bookkeeper on a part-time basis?

Many bookkeepers provide part-time or freelance services, allowing you to tailor their involvement to meet your company's requirements. Accessing professional financial assistance through this arrangement may be more manageable for those with limited financial resources.

Is a bookkeeper the same as an accountant?

They most certainly are not. Bookkeepers and accountants are responsible for separate but related tasks. Bookkeepers manage finances, including recording transactions and maintaining ledgers. On the other hand, accountants concentrate on higher-level financial analysis, tax planning, and providing strategic financial guidance to their clients. Both roles are vital for effective, comprehensive financial management.