The Benefits of Hiring a Bookkeeper for Your Business
So you read our last blog and realize you might need a bookkeeper. Your next thought might be, "Can I afford a bookkeeper?" While price is important, it’s far more important to think about what you’ll get from your bookkeeper in terms of value.
"Price is what you pay. Value is what you get." - Warren Buffett
So rather than just considering the dollars and cents, let’s take a look at the value a good bookkeeper brings to your business to determine if it makes sense for you.
1. Reclaim Your Time
Sources show that entrepreneurs spend anywhere from 4-48 hours per month with the median hovering around 10-12 hours. That’s a good chunk of time spent each month on an administrative task that requires quite a fair amount of attention. With a bookkeeper managing your accounts, you can dedicate that time to growing your business, strategizing for the future, and focusing on customer relationships — reclaiming precious hours to focus on other areas of the business. By reducing the administrative burden, you can invest more energy into areas where you excel.
2. Improve Financial Accuracy
Bookkeepers are experts at what they do, much like you are the expert of your business. They ensure every transaction is properly categorized, that no receipt goes unaccounted for, and that your records are clean and precise. This minimizes the risk of costly errors, missed payments, or incorrect financial statements—all of which could damage your business. By having a professional oversee your books, you can rest assured that everything is in order.
3. Gain Financial Clarity
When your books are in order, you gain a clearer view of your business’ financial health. A professional bookkeeper can provide you with the financial reports you need, whether it’s a cashflow statement, profit and loss report, or year-end tax summaries. Having access to reliable and up-to-date financial data empowers you to make strategic decisions with confidence, identifying opportunities and addressing challenges before they escalate.
4. Avoid Financial Errors and Penalties
Did you know that 40% of small businesses incur an average of $845 annually in IRS penalties? Keeping track of every detail can be daunting, and missing important tax deadlines or deductions can be costly. A professional bookkeeper helps keep your financial records in order, making it easier for your tax preparer to handle tax filings efficiently, which prevents penalties and maximizes deductions.
5. Enhance Cashflow Management
Cashflow is the cornerstone of any business. A bookkeeper can streamline your invoicing process, ensuring bills are sent out promptly and payments are followed up efficiently. This helps you get paid faster and reduces the likelihood of cashflow issues. Proper management of accounts receivable and payable ensures that you always have the funds to cover expenses and invest in growth opportunities.
6. Avoid Late Fees and Maintain Good Vendor Relationships
Missing payment deadlines can lead to late fees and strained vendor relationships. A bookkeeper keeps track of all payment schedules, ensuring that your bills are paid on time. This not only helps you avoid unnecessary costs but also builds trust with your suppliers, potentially leading to better terms or even discounts down the road.
7. Support Business Growth
If you’ve set ambitious revenue growth goals, bookkeeping can be a major distraction. Hiring a bookkeeper allows you to focus entirely on scaling your business. They’ll take care of the financial details, freeing you up to explore new opportunities, expand your offerings, and achieve your business milestones. Bookkeepers also set up scalable systems that support growth, giving you stability during expansion.
8. Improve Work-Life Balance
Running a business often means sacrificing personal time, but it doesn’t have to be that way. Just like you might hire a housekeeper to manage household chores, hiring a bookkeeper can give you back valuable hours that you can spend with family or on personal pursuits. By offloading the stress of managing your books, you can enjoy a healthier work-life balance and focus on what matters most.
Conclusion
Hiring a bookkeeper has some substantial benefits: saving you time, reducing unwanted stress, and improving your business health and cashflow. Some businesses have reported that an 11.5% increase in income was due to the advice, support and services of bookkeepers and accountants..
If you’re constantly pushing off your books, spending too much time on financial tasks, or lacking insight into your business's financial health, it may be the right time to bring in a professional bookkeeper. Reach out to us to discuss your needs and learn how streamlined bookkeeping can give you the freedom to focus on what matters most—growing your business and enjoying your life.
