If you’re reading this, you’ve probably either recently hired workers for your growing business (congratulations!), or you’ve had them for a while and are buried under a pile of financial paperwork. Either way, you’ve come to the right place!
When it comes to dealing with payroll and keeping track of your company's expenses, you have two options: either become a bookkeeper, or hire one. There isn’t really an easy hack for keeping tabs on your company’s financials because it requires knowledge of a lot of rules, regulations, and… well, math.
Nobody’s got time for that. Except bookkeepers.
What does a bookkeeper do?
A bookkeeper specializes in recording financial data. That includes:
Documenting daily transactions. Taking all your ketchup-smudged, crumpled receipts (also called ‘source documents’) and entering them into the records.
Bank reconciliation. Making sure all the money flows in and out of the proper accounts, and fixing it when it doesn’t.
Accounts payable and payroll. Keeping track of your employees’ time worked and wages, and paying them.
Accounts receivable. Creating invoices for your services, and making sure you get paid.
At what point should I hire a bookkeeper?
Though many think to hire a bookkeeper once they need a payroll system, in an ideal world, you’d hire someone right when you start making money through your business. Otherwise you’ll end up with months worth of receipts and unaccounted for transactions— which can be costly and time consuming to remedy. But if that wasn’t realistic, which is understandable, our next best answer is: now.
Here are five reasons why you should hire a bookkeeper:
1. Bookkeepers save you money
Even though it feels like doing payroll yourself will save you cash, if you’re unfamiliar with the ins and outs of bookkeeping, a professional's experience can prevent larger budgetary issues down the line.
2. Bookkeepers allow you to focus on your own work
Avoid getting caught up in the tedium of administrative work by handing it over to someone who actually likes to do it! Hiring a bookkeeper will free up your valuable time to do higher-impact work only you can do.
3. Bookkeepers don’t miss important deadlines
Bookkeepers are experts at maintaining a schedule. Ensure both your workers and your bills are consistently paid on time. (They’ll also make sure you’re paid on time, if you find a really good one.)
4. Bookkeepers make tax season easier
With your records up-to-date and a knowledgeable person on staff, tax season should be a breeze. Never again will you have to worry about the many (many, many) corporate tax requirements.
5. Bookkeepers provide a big-picture view of your financials
As a business owner trying to accomplish a mission near and dear to you, it’s very easy to get caught up in the dollars and cents of things— “will I be able to pay my staff, my rent, myself?” Bookkeepers can provide high-level financial snapshots of how you’re doing without pulling you into the weeds.
Organizing your financial workflow is essential to the early success of your business. Small business owners already have enough on their plate. It’s time to lighten the load.