Why Should I Hire a Bookkeeper?

We get it—you’re a small business, and you have to reduce expenses wherever you can. However, hiring a bookkeeper is one of those expenses that totally pays for itself. Here’s why:

Hiring a bookkeeper is a great idea for all small business owners, even those who know their way around the finance world. We get it—you’re a small business, and you have to reduce expenses wherever you can. However, hiring a bookkeeper is one of those expenses that totally pays for itself. Here’s why:

Bookkeepers Have Lots of Knowledge, Experience, and Certifications

They can offer advice on your tax returns, help you streamline your internal business processes when it comes to finances, warn you if you have any cash flow problems, and more. They can use software that makes it quicker and more efficient to manage your accounting. They also know how to record your financial information in an organized, accurate way.

Bookkeepers reduce the chance of errors. As a small business owner, you have a lot on your plate.

Despite your best efforts, you may struggle to stay up to date on your bookkeeping, especially if you get very busy with other parts of your business. And, if you’re struggling to focus, you might make mistakes. Inaccurate financial records are a big deal, and they could even cost you your business. A bookkeeper’s sole job is to create exact records, so they are much less likely to overlook things and cause errors.

Here’s one reason why errors are so dire: If your business ever gets audited by the IRS and they find errors or insufficient records anywhere, the IRS can disallow past deductions, forcing you to pay huge fines, penalties, AND tax bills. This will take a huge toll on your finances and can even force your small business to close. Do everything you can to eliminate the chance of this happening!

Bookkeepers Can Present You With a Valuable Big Picture of Your Finances

Each month, they can send you an accurate portrayal of your sales, expenditures, and more. That will help you track your financial position from month to month while letting you know exactly how much money you have in the bank—making it easier to make smart business decisions.

Bookkeepers Will Make it Easier at Tax Time

There is a standard process for recording financial information. If you are doing your bookkeeping yourself and you don’t follow that standard process, then your CPA will have a harder time reviewing your finances at tax time. This can cause delays and frustration for all parties involved.

Bookkeepers are Faster and More Efficient Than You are

Sorry, but it’s probably true: even if you can do your own bookkeeping, you’re probably not the quickest and most efficient at it… and if you try to rush, you’re running the risk of the aforementioned errors that could put you out of business. Bookkeepers are highly efficient at what they do, because it’s their full-time job. Paying a pro to do your bookkeeping can save you money because, instead of using up a lot of your valuable time, you can spend your time growing your business and making sales. What is your time worth?

About the Author

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Joseph A. Davis, EA, CDFA®BFA™

Director

With over 16 years in the financial services industry, Joe knows his stuff. Cursed with the desire to be a serial entrepreneur - Joe is a real estate investor & managing partner for Davis Financial LLC, Utah Divorce Services and Davis Tax & Associates. He most recently became the director for Find a CPA Today. Joe is an Enrolled Agent, EA, & CDFA®, BFA™. He also holds FINRA licenses 7, 66 & 24. When Joe isn't trading, looking for new real estate investments or obsessing over his work - you can find him at home, playing with his children & probably mowing his lawn.

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