When Should You Hire a Bookkeeper?

Many business owners get used to wearing multiple hats, but as your business grows, you may find that the last thing you want to worry about is the intricacies of financial management. Takings steps to hire a bookkeeper can transform the way you handle your financials and allow you to focus on what you do best: running your business.

Here’s an overview of what a bookkeeper does and the tell-tale signs that you’re ready to take your financial management to the next level. 

What Does a Bookkeeper Do?

Bookkeepers are responsible for maintaining financial records by accurately recording transactions. They use the same financial recording practices as accountants. In turn, this makes it easy for your accountant to process your financial data, should you choose to work with one.

Some common tasks bookkeepers perform include:

  • Gathering receipts, invoices, and transaction records.

  • Logging these details into accounting software.

  • Collaborating with you to clarify financial data, such as allocating specific expenses to specific clients.

Beyond documenting transactions, bookkeepers can also assist with:  

  • Implementing additional tools to enhance your business operations, like POS systems

  • Streamlining payroll processes to ease employee payment procedures

  • Correcting errors through bookkeeping remediation

  • Offering training on how to effectively use accounting software

Bookkeeping isn’t just about recording transactions, however; it’s about creating a foundation for sound financial decision-making. By meticulously tracking all your transactions, bookkeepers help maintain your company’s financial health. They ensure that every move your business makes is recorded and compliant with accounting standards and tax laws.

To learn more about the role of bookkeepers and other accounting professionals, please visit our Glossary of Terms.

Note: Although bookkeepers are primarily used by businesses, working with a bookkeeper can also be very beneficial for individuals with complex financial situations, such as freelancers, independent contractors, and those with multiple income streams. High-net-worth individuals can also benefit from bookkeepers’ expertise in financial record keeping and management.

Signs You Should Consider Hiring a Bookkeeper

If you’ve been considering hiring a bookkeeper, it’s generally best to do it as soon as possible—otherwise, you may find yourself sifting through months of unprocessed receipts and invoices.

This process is not only time-consuming but also becomes challenging as details fade over time. For example, you may find yourself wondering which invoice goes to which client, or why you had travel expenses on a particular day. A proficient bookkeeper would have immediate answers to these questions and ensure that each expense is correctly attributed to the relevant client.

That said, here are several signs that indicate it might be time to hire a bookkeeper:

  • Increased Sales: If your sales and revenue are going up, it’s generally time to hire a bookkeeper. They can take care of tracking your sales while you focus on growing your business and identifying which products or services are most profitable.

  • Complex Transactions: As your business grows, so does the complexity of your financial transactions. A bookkeeper ensures that everything is recorded accurately and in line with standards such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

  • Seeking External Financing: While you should always ensure your financial reporting is accurate, accuracy becomes increasingly crucial if you’re trying to get external financing for your business. Investors and banks will look at your finances closely, so accurate records are essential.

  • Bookkeeping Challenges: You may have been able to manage your bookkeeping early on, but as business picks up, so does the difficulty of keeping up with your financial tasks. If you find you’re often too busy to do your bookkeeping, bookkeeping is taking valuable time away from core business activities, or things are slipping through the cracks, it’s time to hire a bookkeeper.

  • Meeting Legal and Compliance Standards: If you’re not familiar with the legal and accounting requirements, like quarterly taxes and payroll, it’s easy to fall behind. A bookkeeper can help you meet these obligations and avoid fines, penalties, and other legal issue

  • You’re Seeking Financial Insights for Growth: If you’re aiming for growth and need deeper financial insights, hiring a bookkeeper can be a game-changer. They can help you analyze trends, identify opportunities for cost savings, and provide the financial clarity needed to make informed decisions for scaling your business.

  • Freelancing or Independent Contracting: If you’re a freelancer or independent contractor juggling multiple clients and projects, a bookkeeper can help you track income from various sources, manage invoices, and ensure that your expenses are accurately recorded.

  • Managing Personal Investments: Individuals with significant investments, such as real estate, stocks, or other assets, may find a bookkeeper’s services beneficial. They can help track investment income, manage related expenses, and provide a clear picture of how these investments impact your overall financial health.

  • High Volume of Deductible Expenses: If you have a high volume of expenses that could qualify as deductions on your tax return (such as those related to a home office, travel, or education), a bookkeeper can ensure these are correctly categorized and documented, so you can maximize your potential tax benefits.

Find the Right Bookkeeper for Your Needs on BookkkeepingHelp.com

Hiring a bookkeeper isn’t just an administrative decision; it’s a strategic move that can significantly impact your business. Whether you’re running a small local shop or a growing enterprise, the detailed precision and clear financial oversight a professional bookkeeper offers can markedly enhance both operational efficiency and overall financial wellness.

However, it’s also important to find the right bookkeeper—someone who not only has the technical skills to manage your financial records but also the ability to understand your business goals and tailor their services effectively.

BookkeepingHelp.com’s directory is designed to simplify your search and help you find the right bookkeeper. Our robust search features help you filter bookkeepers based on the services they offer, location, price point, and more. Whether you’re looking for a bookkeeper with industry-specific knowledge or proficiency in a particular accounting software, BookkeepingHelp.com streamlines the process of finding qualified accounting professionals who cater to your specific needs. Start your search today!

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