This guest post is provided by Bookkeeping Express (BKE), a leader in full service accounting and bookkeeping for small and medium-sized businesses.
Bookkeeping is a big part of what keeps a business running. It tells you how much cash you have in the bank, if your sales are shrinking or growing, and what you’re going to owe on your taxes. But you probably didn’t start your small business because you loved bookkeeping.
Here are three questions to ask yourself to determine if your business is better off with a bookkeeper.
1) Do you love the numbers?
If you enjoy geeking out on bank reconciliation and accounting for every penny in your business, you should definitely make the time to do it yourself. Some business owners want to be hands-on with their numbers. If you hate being the one doing the math, it’s probably time to outsource.
2) Does your spreadsheet handle everything it needs to?
Do you have balance sheets? Accounts receivable and payable? Do you know what a general ledger is? If you answered yes to all of those, well done! You’re basically a bookkeeper. But if you answered no, your business could be suffering from a lack of good financial information.
3) Are you confident about the books when you’ve finished them?
When it’s tax time are you going to pay extra to get every inch of your books checked? Are you going to be worried that an audit could uncover some questionable math? If so, you need a professional to come in and take over. It could actually save you from a costly tax bill or even worse, an audit.
If you’ve determined that your books would be better in professional hands, congratulations! This is a big step forward in your business. By getting a professional not only will you have more time, you’ll also get timely, quality financial information that could help take your business to the next level.
Bringing someone new into your business is a big commitment. You should know you’re hiring the right person so you don’t end up having to rehire in the future. Here are three questions to ask your bookkeeper to know if they’re right for you.
1) What kind of experience do you have with businesses in my industry
A bookkeeper who knows your industry can offer far more value than one who doesn’t. They will know specific things to look out for – like credit control, taxation laws, and payroll reconciliation.
2) What kind of accounting software do you use?
Qualified bookkeepers are skilled in technology applications. They understand that cloud accounting software streamlines bookkeeping functions and keeps your data secure. Get an idea of what kinds of technologies and applications they’re utilizing so you can get the most out of your partnership.
3) What do you do to stay on top of accounting and bookkeeping practices?
Bookkeeping is a business practice that’s as old as time, but technology is also changing at a rapid pace. Is your bookkeeper familiar with these time-saving apps and software?
Finding a bookkeeper that’s right for your business will give you a valuable team member that can help guide your business as you grow. And they don’t need to be in-house. You can save money, and free yourself from having another employee, by using an offsite team like BookKeeping Express. Get a free consultation and we’ll tell you how we can help your business.