10 Signs You Should Invest In Bookkeeping

10 Signs You Should Invest in Bookkeeping

Why should you hire a bookkeeper? I looked around the web to confirm my own thoughts on the matter and this is what I found.

According to Eileen P. Gunn in Entrepreneur Magazine:

1. You’re probably not doing as good a job as you think on your own.

Entrepreneurs who hire accounting help usually discover they weren’t doing nearly as well on their own as they thought they were.

Zalmi Duchman, chief executive of The Fresh Diet, a meal-delivery company based in Miami, lasted five years without a bookkeeper then hired one three months ago. The new employee cleaned up records that incorrectly mingled expenses and assets, reviewed employee purchases for duplications, and took over the mundane but critical task of paying bills. Duchman estimates his company is saving $500 to $1,000 in late fees every quarter. “I definitely have been able to make better and more educated decisions,” he says. https://www.entrepreneur.com/article/219917

The next four reasons come from Jan Barned over at accounting software myob’s blog:

2. You are spending too much time on bookkeeping and not enough on your business.

3. You’re not recording all business transactions — you’re allowing gaps because you’re too busy to keep up.

4. A bookkeeper keeps trained on the latest rules so you don’t have to. It’s his or her job to make sure your bookkeeping follows accepted practices.

5. You’re paying inflated fees to an accountant (CPA) to do bookkeeping when hiring a bookkeeper might save you money.

The next three are from a financial firm in Florida:

6. A bookkeeper knows how to automate. Modern bookkeepers are up on all the latest cloud based accounting technology so they can automate bookkeeping transactions and source document tracking that used to take lots of manual labor.

7. It’s the law. Inaccurate financial records can lead to legal troubles arising from unintentional tax fraud. A bookkeeper (sometimes in cooperation with a CPA) can help keep you out of trouble.

8. A bookkeeper can help you with decision making by reviewing the current financial health of your business with you.

The final two come from accounting software Kashoo’s blog:

9. Accurate books help you keep track of who owes you money and to whom you owe money. Not only will a bookkeeper keep track of this, some bookkeepers offer add-on services that provide full management of your accounts receivable and accounts payable processes.

10. Pay less in taxes! If you don’t track business expenses properly you will miss out on tax deductions. A bookkeeper will be focused on proper categorization of expenses.

Do you have any questions on the wisdom of hiring a bookkeeper? If so, leave a comment below.


Think you might need a bookkeeper? Set up a no obligation call with me to discuss your needs.


 

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