Why wouldn’t you? If you’re a small business entrepreneur, having a bookkeeper can actually save you money, help grow your business, and help you understand where your business is thriving, or needs a tune up. All while you focus on what you are passionate about in the first place- running your business!! The fact is, one of the greatest assets to a small business is a good bookkeeper.
“But why hire someone to do it when I can do it myself?”
When you started your business, it was probably because you had a passion for doing what you do, not to sit in the background entering invoices, cheques, reconciling accounts, checking bank statements, and all that other fun stuff. You know your business best, so you should spend your time and energy on making it successful and leave others to manage the financial details.
Also, the cost of bad bookkeeping can be much higher than you realize. You can not afford to ignore this area of your business! Many small business owners fail to realize the importance of a great bookkeeper until they are drowning in paperwork and behind on important deadlines. While it’s true that most businesses don’t need a full-time bookkeeper, most would really benefit from a part time professional. It can really pay off in ways you might not have even imagined. You can have your books done weekly, monthly, quarterly or yearly, depending on the size of your business, for a lot less than a full time bookkeeper. Furthermore, when you take your books to the accountant for your Year End, your bookkeeper has made sure that everything is tracked, organized, neat and in an easy to follow format. This saves the accountant time- which saves you money!
“What if my Business Partner and I share the Bookkeeping Responsibility?”
You might be in a business agreement or a business partnership wherein there is more than one individual with a vested interest in the accounting of your business. Even if you think you have a great business relationship, these relationships can easily turn sour if there is any accusation of misconduct with bookkeeping. Even an unintentional error at the hands of one person can cause a serious and unrepairable rift in a business relationship. Take the potential conflict and possible stress out of the situation, and use a Bookkeeper to carry out the transactions. You and your business partners will be better able to deal with any potential issues if none of you are directly at fault. It also gives you both the ability to focus on growing your business.
“How do I find a Bookkeeper?”
Bookkeepers in Canada do not legally need to obtain any type of certification to become Bookkeepers, so it’s important to be sure you find one who has experience in your industry, is knowledgeable, and has an up to date understanding of accounting rules and laws. There are several things to consider when looking for a bookkeeper. Having a bookkeeper who works directly with an accountant is a great asset, as they have that knowledge and expertise at their fingertips when issues or questions arise. When considering someone, ask questions. “What experience do you have?” “What type of financial reports do you prepare?” “What accounting programs do you work with?” “Do you have any voluntary certification?”. The bookkeeper you hire should have the knowledge to carry out some very basic tasks, such as reconciling bank accounts and credit cards, processing payroll, accounts payable and accounts receivable, and having a strong understanding of journal entries and how to post them. Overall, be sure they are knowledgeable, have experience in your industry, work closely with an accountant, and are willing to answer all your questions and work closely with you!
As you can see, there are many reasons to hire a bookkeeper. They can take many of the frustrating aspects of small business ownership off your shoulders so you can go back to doing what you love every day. Good luck in your entrepreneurship!