DIY or Hire Professional Bookkeeping Services?
You might save money doing your own bookkeeping for your business, but it is often not worth your time. Regardless of your accounting skills, doing your own bookkeeping is a non-revenue generating task, if you can find an affordable way to outsource this task, do it!
Here are six reasons to consider hiring someone else more qualified than you to do your books:
- Save time. The time you spend keeping track of sales, classifying your expenses, reconciling your accounts, recording payments and creating monthly reports may be better spent serving your customers.
- Avoid errors. Mistakes on your financial documents can lead to expensive nuisances like tax audits. If you miss a bill or neglect to pay something important, it could adversely affect your credit rating.
- Prevent burnout. You want to leave some time when you are not working to be with friends and family and rejuvenate for the next workweek. The more time you spend on financials, the less free time you have.
- Get a new perspective. Your bookkeepers can run reports each month to show how you are doing, where the money is going and how your efforts are paying off. They will provide the “big picture” it might be hard to see on your own.
- Receive timely reports. When you’re busy running your business, setting aside time to update your financials can be difficult. Find a bookkeeping firm that can deliver your financials to you with days, not weeks after the end of the month.
- Keep clean records. Skilled bookkeeping services will keep clean and up-to-date records, so you always know where you stand.
How to Pick Good Professional Bookkeeping Partners
With the steps below, you can reap the benefits of outside help while reducing the risk of choosing someone who is 1.) not capable, or 2.) not a good fit:
- Check their references and experience
- Make sure they are educated in accounting software/technology
- Make sure they are well-versed in accounting policies and procedures
- Meet face-to-face to check whether you have good chemistry and will get along
- During the meeting, ask questions to ensure they can communicate financial matters in language you can understand
With a professional bookkeeper on your team, cash flow will remain optimal, which comes in handy when you are looking for new funding. You want to be able to show positive cash flow.
Bookkeeping services in your hire can prevent conflicts with your business partners on how funds should be spent. With proper processes in place, partners cannot withdraw money without the other partners knowing about it.
DIY May Not Save as Much as you Think
Professional bookkeeping services usually save clients money, because lack of knowledge, missed payments and delayed accounts receivables can be quite costly. And it doesn’t cost as much as you think!