Here's why you should hire a bookkeeper
The U.S. Small Business Administration lists “bad bookkeeping or no bookkeeping system” as a top reason for new businesses failing.
There are several key choices to consider when your company puts together a bookkeeping strategy.
First choice: DIY Bookkeeping versus hiring a bookkeeping contractor
Here are the important elements that need to be maintained in your companies books:
- Prepare estimates, invoices, and credit memos
- Prepare annual 1099s and W9s
- Record payroll and tax payments
- Bank and charge account reconciliation
- Monthly financial statements
- Petty cash records
- Secure company data with backup and password features
The first choice is a cost-benefit analysis of the amount of time spent preparing financial records for your company. Is it more effective to spend your own time focused on these day-to-day reports or to hire a bookkeeper to complete these tasks?
Second choice: Learn GAAP (Generally accepted accounting principles) or hire someone who has already been trained
There are plenty of resources online and in books to train oneself on the important requirements associated with company bookkeeping. Amazon has hundreds of options to choose from. Ehow.com has a variety bookkeeping step-by-step guides for various business models, one of them is sure to fit your needs.
A bookkeeper has already been trained and performs bookkeeping tasks exclusively as a business owner. Bookkeepers are often certified with two or four year degrees specializing in accounting and bookkeeping. Is it more important to develop the skillset in-house or save the labor and hire a consultant to utilize this skillset?
Third choice: Getting ready for tax season on your own or hiring someone to review current tax codes and prepare books with tax season in mind all year long
Everyone knows tax season can be stressful. Doubly so when you are running your business, trying to keep up with new tax requirements, and preparing books for your accountant. Should you manage this for your company and play catch up with your financials for the past year or hire a bookkeeper to track your financials according to tax requirements all year, and then spend a few hours preparing your tax reports at the end of the year to submit to your CPA?
Ballou & Associates has been providing bookkeeping services in the Midcoast area for over 25 years. Owned and operated by Tammy Swasey- Ballou, Ballou & Associates offers a full range of bookkeeping services tailored to the needs of our individual clients. Being a small business allows us the flexibility to offer special services like pick-up and drop-off of your monthly bookkeeping, on-site work and remote service. Tammy is a Certified Advanced QuickBooks Pro Advisor and can set-up, customize, or troubleshoot your QuickBooks.