There are never enough hours in the day. No small business owner, can do everything alone, and do it well. There will come a time when you may decide that its’ time to bring in some help. The best place to start, is to hire a bookkeeper to manage perhaps the most important part of your business; The money. Without properly managed cash flow, good credit produced by timely payment to vendors, and a real time look at your company’s financial truth, you aren’t really doing yourself any favors. Hiring a bookkeeper can add cash to your bottom line, believe it or not.
Its’ a daunting task, handing over your finances to a stranger, so take your time, do your homework and due diligence, decide what type of person you are looking for, and what you are willing to let go of in the responsibility department. Be clear with yourself about what your expectations are and then go out and find that gem of a bookkeeper. Here are the top five reasons, why you really shouldn’t’ be operating without one.
1. The value of their time in keeping the books is higher than the value of YOUR time doing the same thing. Ouch, that one stings a little bit right? Well let’s dig a little deeper. Another way to say this is that a bookkeeper is typically trained and experienced at a very specific set of tasks and skills. You are not. (Well you might be, but you wouldn’t’ have made it this far into the post if you weren’t considering hiring some help now would you!?) He/she is trained to handle specific tasks and challenges in financial matters of a business. These tasks are probably handled more quickly by him/her than they would be by you, as you blunder through it muttering about how you’d rather be visiting job sites, or making sales.
2. You get paid faster when you have someone dedicated to chasing down the folks who are getting way too comfortable on your ageing report.
3. Your credit rating remains stellar when your bills all get paid on time. Leave it to your bookkeeper to maintain a schedule of payments due, and keep your vendors happy! Better credit rating and history usually means better prices AND better terms.
4. The expense of hiring a bookkeeper is a business expense… and don’t forget that those are tax deductible. (Consider paying a bookkeeper for the time spent on your books ONLY vs. hiring an in-house employee to keep the books plus whatever else you might want them to do, which will be more costly.)
5. Finally, your stress level is reduced. Imagine all of the free time that you are going to have to devote to marketing or sales, networking or customer service, now that you have someone competent, skilled and trained, keeping an eye on your money, and alerting you before potential problems occur.