Five Reasons to Hire a Bookkeeper
As the owner of a new business, you start off your management momentum with the best intentions of keeping up with the books. In your mind, a simple piece of software and some data entry will make the bookkeeping easy and efficient. However, many business owners find themselves stressed with the amount of time, energy and learning that comes with keeping up with the books. You will find that hiring a person to focus on bookkeeping will be a smart investment in the future of your business.
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Time
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If you have taken on the task of doing the books yourself, you are likely spending more than 10 hours a week of your valuable time on bookkeeping. A bookkeeper can keep the books in much less time and do it better. This frees you up to focus on the aspects of the business in which you excel.
Skillset
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If you are an entrepreneur adept at bookkeeping, one who can do it with ease in no time, you can keep your own books until you are willing to pay someone else to do it for you. If you are one of the entrepreneurs not skilled at bookkeeping, however, hire a bookkeeper. By increasing the accuracy of the bookkeeping, you ensure that you see a valid picture of where your company stands. You also make sure that you are submitting the appropriate tax payments.
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A Financial Associate
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Another reason to hire a bookkeeper isher knowledge of the tax code. An expert bookkeeper will be there to let you know that you can claim a deduction when buying a vehicle. She will know how to get the largest deduction possible based on your expenditures. She will also be able to give you an accurate portrayal of your current business expenses, and whether or not the company can afford a large expenditure. This makes the bookkeeper an adviser available to offer a straightforward opinion on the financial options of the company.
Tax Season
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Having the bookkeeping wrapped up and ready for tax season is another considerable advantage of having a bookkeeper. It could cost you from $75 to $200 an hour to hire an accountant during tax season to prepare the books, according to Schwab.com. A bookkeeper can ensure that your taxes are not only ready at tax season, he also ensures that any investigation from the Internal Revenue Service into your financial practices finds only accurate bookkeeping.
Accountant or Bookkeeper?
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There are many benefits for your emerging business when hiring a financial professional. There are even more benefits when hiring a bookkeeper instead of an accountant. A bookkeeper will work for two to three times less pay than an accountant. He will also be willing to work part time. There will come a time when you will need a full-time accountant, but until then a bookkeeper is an excellent option for saving money.
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References
- Fresh Books; Why Should I Hire a Bookkeeper?; Eric Matthews; January 19, 2011
- Resource Nation: 3 Reasons to Hire a Bookkeeper
- "Entrepreneur" Magazine; Hiring a Bookkeeper or an Accountant; Jane Applegate; October 29, 2001
- Rox's Busy-ness Solutions: Why Hire a Bookkeeper?
- Small Business Online Community; Start-Up Series: Hiring a Bookkeeper or Accountant; March 2, 2010
- Schwab; Do You Need to Hire a Tax Preparer?; Rande Spiegelman; March 22, 2004
