Managing a small business is no easy task and managing the finances can be a small headache. Bookkeeping is definitely not the favorite task of most small business owners, though it is an important factor in the success or failure of the business. Knowing where you stand at any instant gives you the information you need to make decisions that can help your business grow or prevent you from making a bad one that ends in failure.
How does a small business benefit from a professional bookkeeper?
An educated professional bookkeeper understands how to properly log and categorize expenses. They have enough experience to quickly turn a pile of receipts, bills stubs, and sale sheets into a detailed financial statement that lets you see exactly where you have been and focus on where you are going. The most successful business owners learn how to delegate tasks to the most qualified person. This creates efficiency. Too often they spread themselves thin and try to be everyone and everywhere in their company. This does lead to mistakes or overlooking things at key moments. A professional bookkeeper can take this one thing off their hands and are trained to see little things a small business owner may overlook financially and alert them before it is too late.
Can you afford professional bookkeeper?
The cost of a professional bookkeeper is probably the biggest obstacle for a lot of small businesses. Most small business do not need a full-time bookkeeper. With technology and implementing proper process you can hire a remote bookkeeper for just a few hours a month to help you keep your books up to date. Rates vary greatly and a lot of times you get what you pay for.
Is financial software just as good as a professional bookkeeper?
There are hundreds of accounting software systems to choose from and choosing and learning a new accounting system can be daunting. However, a professional bookkeeper has more experience and can do so more efficiently than small business owners who are already trying to fill many hats on the job. If you are determined to prepare your books in-house, one option is to pay an outside bookkeeper to train you or your staff on how to use an accounting system and review your books regularly for accuracy.
Just like you would call a professional to fix the plumbing, paint and decorate, and do electrical or carpentry, so too a professional bookkeeper is the best financial assistant for the job. They can keep it under control, keep detailed records, and do so efficiently.
When you started your business I bet you did not image a world of bank reconciliations, categorizing expense / revenues, sales tax, payroll, paying bills, collecting invoices, merchant accounts, need I go on. Just imagine how your world might change with your desk no longer cluttered with paper work or long hours in the office after the shop closes trying to make sense of all your financial transactions. You might even make it home before the sun sets.