Most business owners prefer to take matters into their own hands in order to save on costs which they think are not needed. They do everything they can by themselves and do not pay anything until they are forced to do so. It is particularly difficult for them to hire an assistant who will take care of their accounts, financial records and business books i.e. the bookkeeper.
With simple computer programs, many business owners think that they can keep their books themselves, even when they are pressed with time and think about if they have done everything right. Most business owners are certain that they can learn any skills about how to run their own business.
However is bookkeeping easy to learn or should they hire a professional bookkeeper? If you want to avoid this situation and don’t want to worry about learning, we advise you to look at a bookkeeping service like BBS. Business owners who hire bookkeepers usually discover that they are not nearly as good for the job to be done as the bookkeeper is. Knowledge is power, especially when the smallest details are concerned. If you do not have a bookkeeper, then you probably do not spend money as strategically as you could or should.
Even if you think that elementary bookkeeping is simple, it will distract you from your business, and with the business expansion you will need a person who can keep things under control, so that you could focus on the job itself.
You will need both a bookkeeper and an accountant. This can be related to the need for hiring a woodworker and an architect in the construction of the house because the house will not be built if you do not hire both of them.
Accountants can analyze the overall view of the businesses financial situation and advise strategic advice. They deliver the needed paperwork for taxes with profit and loss statements. Accountants can also work as an outside financial advisor providing advice on financial strategies to the business owner.
A bookkeeper works on daily tasks: ensuring that new employees provide all the necessary documents required for salary payment, sending bills and taking care of their payment. A bookkeeper also tracks the companies’ expenses and ensures that everything is in the computer program that the company uses so that it is prepared for tax return. They also provide other reports to creditors and investors.
When you should hire a bookkeeper?
Many small businesses can use bookkeeping services occasionally or for a long period of time. Will you hire someone on a full time basis or by the service depends primarily on the size of your business and income. If you’ve just started a job it will be enough to hire someone on a part-time basis.
If you call your bookkeeper frequently, and by that we mean that it would be better that they are at the office at all times, then it is time to hire someone on a full-time basis. Think about hiring a good bookkeeper as an investment that will help in saving lots of your money and nerves in the future.
Sanjeev Desai, CMA
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BBS Bookkeeping and Accounting Toronto