Hiring a bookkeeper is something many business owners contemplate for a while. Depending on the size of your business or the complexity of your transactions it may be something you can manage on your own for a while. Quickbooks offers very simple solutions to mange your business financial management needs, and upgrading is easy. You can even add a bookkeeper onto your Quickbooks account down the road when you do finally choose to outsource.
When you do begin to consider outsourcing to a professional bookkeeper, here are a few things to consider:
-How much time do you spend on bookkeeping each month? And how much time do you have to spare?
-Does the thought alone of bookkeeping add extra stress to your day?
-Are you behind on your bookkeeping, or unsure of your accuracy?
-Do you ever feel unsure whether your financial records or tax filings are correct?
Your answers to these simple questions will give you the indication on whether you and your business are ready for a bookkeeper.
Here are the most common benefits of working with a bookkeeper.
If you’re still debating whether you’re ready to hire a bookkeeper or not, consider these popular benefits and how they can positively affect your work days and business success.
1. You get “mission critical” info.
Every month bookkeepers typically prepare a balance sheet and an income statement, and—depending on what style of accounting you use—a cash flow statement. These financial statements give you the essential info you need to run your business and file taxes.
When a qualified bookkeeper is on the job, financial statements are prepared properly and according to accounting standards—so your accountant can quickly and easily file your taxes.
2. You gain the potential to pay less in taxes.
When a bookkeeper is experienced with businesses in your industry, they understand common expenses—and can let you know which business expenses are tax deductible.
For instance, a bookkeeper who works with other contractors can tell you whether the cost of additional training for one of your foreman can be deducted on your taxes.
Plus, the cost of hiring and working with a bookkeeper is also tax-deductible.
3. You could pay less in accounting fees.
Suppose you went all year without preparing monthly financial statements and then handed off your business records to an accountant to file your taxes. They’d have to go back and prepare financial statements retroactively—effectively, doing a bookkeeper’s work.
Since accountants generally charge more for their time than bookkeepers do, it means you’ll end up paying more, a lot more. If you have a bookkeeper do the job properly in the first place, you’ll save money in the long run.
Even if you prepare your own monthly financial statements and deliver them to your accountant come tax time, you risk being charged extra if they need to correct any errors. A qualified, professional bookkeeper should be able to deliver flawless books directly to your accountant on your behalf.
4. You’ll save time.
When you spend less time on administrative tasks like bookkeeping, you’ll enjoy more time to focus on your clients and business success.
If you’re self-employed, it can be hard to put a price on your time. Use an online calculator to determine how much your time is worth. This can help you better determine whether bookkeeping is worth the hours it takes you to complete on your own.
5. You might even increase your profits.
One survey shows that, on average, companies profits increase 16% after they hire a bookkeeper. One reason for this is that bookkeepers have the experience to efficiently manage your bookwork, giving you more time to focus on other areas of your business (like increasing profit).
So there you have it! 5 reasons it's beneficial to hire a bookkeeper. One of the most common advantages to outsourcing your bookwork is time freedom. Business owners can often times feel burnt out and their business can start to feel like more of a job. What would you do with the extra time?
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