Is it Worth Getting a Bookkeeper? All Your Questions Answered

Introduction

Are you a small business owner struggling to manage your books? Do you find yourself spending hours every month tallying up revenue and expenses? If so, it may be time to consider hiring a bookkeeper. In this blog post, we will explore the tasks performed by bookkeepers, the benefits of hiring one, how to get started working with a bookkeeper, and more. By the end, you'll have a clear understanding of whether it's worth getting a bookkeeper for your business.

Tasks Performed by a Bookkeeper

Before deciding whether to hire a bookkeeper, it's important to understand the tasks they perform on a regular basis. A bookkeeper is responsible for maintaining accurate and up-to-date financial records for your business. This includes tasks such as:

• Recording and categorizing financial transactions
• Managing accounts payable and accounts receivable
• Reconciling bank statements
• Preparing financial reports
• Processing payroll

The frequency at which these tasks are performed can vary depending on the size and complexity of your business. For example, a small business may only require a bookkeeper to come in once a month, while a larger business with multiple revenue streams may need a bookkeeper on a weekly or even daily basis.

Benefits of Hiring a Bookkeeper

Now that you have an idea of the tasks performed by a bookkeeper, let's explore the benefits of hiring one:

• Time savings: By offloading bookkeeping tasks to a professional, you can free up valuable time to focus on growing your business.
• Accuracy: Bookkeepers are trained to ensure that your financial records are accurate and up to date. This can help you make informed business decisions and avoid costly mistakes.
• Compliance: A bookkeeper can help ensure that your business is compliant with tax laws and regulations, reducing the risk of penalties or audits.
• Financial insights: Bookkeepers can provide valuable insights into your business's financial health, helping you identify areas for improvement and make strategic decisions.

Getting Started with a Bookkeeper

If you've decided that hiring a bookkeeper is worth it for your business, the next step is to get started. Here are a few tips:

• Define your needs: Before hiring a bookkeeper, clearly define the tasks and responsibilities you expect them to handle. This will help you find a bookkeeper who is the right fit for your business.
• Ask for recommendations: Reach out to other business owners in your network and ask for recommendations. A personal referral can be a great way to find a trustworthy and reliable bookkeeper.
• Interview multiple candidates: Don't be afraid to interview multiple candidates to find the best fit for your business. Ask about their experience, qualifications, and how they stay up to date with industry changes.
• Consider outsourcing: If hiring a full-time bookkeeper doesn't fit your budget, consider outsourcing your bookkeeping tasks to a third-party provider. This can be a cost-effective solution for small businesses.

Is a Bookkeeper the Same as a CPA?

One common question that arises when considering a bookkeeper is whether they are the same as a Certified Public Accountant (CPA). While both professionals deal with financial matters, they have different roles:

• A bookkeeper is responsible for day-to-day financial tasks and maintaining accurate records.
• A CPA, on the other hand, is a licensed professional who can provide more comprehensive financial services, such as tax planning and filing.

For most small businesses, it is common to have a bookkeeper handle day-to-day financial tasks and hire a separate CPA to handle tax planning and filing. However, the best approach will depend on the specific needs and complexity of your business.

Going Rates for a Bookkeeper

If you're considering hiring a bookkeeper, you may be wondering about the going rates. While rates can vary depending on factors such as location and experience, the average hourly rate for a bookkeeper in the United States is around $20 to $50 per hour.

It's important to keep in mind that hiring a bookkeeper is an investment in the success and growth of your business. The time and resources saved by outsourcing bookkeeping tasks can far outweigh the cost.

Conclusion

In conclusion, hiring a bookkeeper can be a worthwhile investment for small businesses. By offloading time-consuming bookkeeping tasks to a professional, you can free up valuable time to focus on growing your business. The benefits of hiring a bookkeeper include time savings, accuracy, compliance, and valuable financial insights. If you're ready to take your business to the next level, it may be time to consider hiring a bookkeeper.