10 Reasons You Should Hire a Bookkeeper for Your Startup

If you own a small business, you might be used to doing many tasks independently. For example, you may be responsible for contacting your suppliers, marketing your products, monitoring sales, and responding to customer inquiries and complaints. Although you might think you’re saving money by managing your cash flow, you can do more harm than good to your money management. A bookkeeper can help you stay compliant by keeping your financial records up-to-date and accurate. They know the ins and outs of accounting laws and can quickly spot a problem before it grows into something bigger.

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. With 15,000+ articles, and 2,500+ firms, the platform covers all major outsourcing destinations, including the Philippines, India, Colombia, and others. Different BPO companies have different markets; some specialize in small to medium-sized businesses while others cater to the needs of large corporations. This is especially a significant perk for those who are just starting out with their small businesses. It’s much better to learn the ropes in a more organized and smooth manner, than just try to wing everything or leave them up to chance.

Get a different perspective on the business.

They are also able to produce forms your business will need throughout the year and for important milestones—like getting financing. Every business needs to maintain accurate financial records, ensure outgoing payments are processed correctly, and all monies owed are collected in a timely manner. If these critical processes are not handled with care, a company will soon find itself in financial hot water.

A bookkeeper can help you with financial planning by providing forecasts and projections based on your financial records. This can help you plan for future growth, identify potential financial challenges, and make how to hire a bookkeeper informed decisions about investments and other financial matters. By having a clear understanding of your financial situation, you can make more strategic decisions that benefit your own business in the long run.

When to Hire a Bookkeeper

They might know of someone who has worked with a bookkeeper in the past and had a positive experience. This is a great way to find a bookkeeper who is reliable and trustworthy. They can provide reports comparing your budget with actual expenditures and will be able to zero in on any differences. With enough experience with your winery, they can also assist in developing future years’ budgets.

Loan applications typically require extensive records of your company finances covering several months. Thorough and accurate financial statements are a necessary component of proving your business is an acceptable risk. The last thing you want is to be denied financing due to haphazard record-keeping. Having an accurate financial picture of your business will also enable you to spot when you might need additional capital, as well as how much capital you need. 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 on your behalf.

How do I choose a small business bank account?

This is often the case for small businesses that are just one person. See the pros and cons of hiring a bookkeeper below to see if it’s right for you and your business. If your business is growing along and doing your own bookkeeping is overwhelming you, it’s usually right. If you don’t have the time or experience to properly do your bookkeeping, mistakes are bound to happen. Wishup’s 24-hour onboarding process ensures that your virtual bookkeeper is up and running in no time, with minimal disruptions to your business operations.

They can provide reports that show your cash flow, profits and losses, and other key financial indicators. This can help you identify areas where you can cut costs, increase revenue, or make other strategic changes. Ensuring your bills and employees are paid on time, your taxes are filed, and your financial statements are current are just some of the things a great bookkeeper does.

Pros and cons of hiring a bookkeeper for your small business

Whereas a bookkeeper manages basic financial tasks, an accountant is more suitable for a higher level of financial analysis, such as financial forecasts, auditing, and tax preparation. Accountants are more likely to give business owners financial advice and insights. Understanding your financial position is directly affected by how accurately you keep your books. Many people do not understand how bookkeeping can impact their company’s growth and how hiring a bookkeeper can be a way for them to save money and enhance their businesses. Small businesses and freelancers need the stability of a sound financial plan to help them sustain their activities.

• When all signs point to upgrading from DIY bookkeeping to professional help, it’s time to plan your next step.
• This can save you time and money, and help you avoid costly mistakes.
• You should ensure accurate financial reporting, beginning from day one of your business.
• Bookkeepers and accountants work with the same financial information from your business.
• There are a lot of practical and tangible aspects of business success.
• Start by looking for candidates with positive reviews or references.

To be sincere, bookkeeping is really tedious (for almost everyone, especially in a small business). Most people, I’m sure, would rather be marketing or prospecting for new clients than writing out trial balances and revenue statements. It is understandable to want access to that information, but it would be better if it came as a monthly gift. Although freelancing isn’t supposed to be all fun and games, it’s difficult to stay motivated when your days are filled with difficult accounting tasks. Don’t worry, you’ll still have to deal with irate customers, shipment delays, and software issues, and tax season. Suppose you went all year without preparing monthly financial statements and then handed off your business records to an accountant to file your taxes.

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Business owners who are still deciding whether to hire a full or part-time bookkeeper can consider outsourcing the task to online bookkeeping services or freelancers. You can use filters to limit the location of applicants, so they’re still in your time zone. Startup founders with no legal or accounting background may be unfamiliar with compliance requirements like quarterly taxes and payroll filings. A qualified bookkeeper can assess your company’s financials and determine what compliance activities are necessary.

Any late payments here could infringe upon the cash flow you need to keep your startup humming along. The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. Your bookkeeper can put the financials in order and run reports showing how you are doing each month, where the funds are going and how your efforts are paying off (or might need improving upon). He or she will give you that “big picture” through the numbers being crunched. They can also make sure that your business habits will not get you into difficult situations. Your bookkeeper will advise you on financial matters that might affect your business, such as a divorce or the death of a business partner.