The Pros and Cons of Hiring a Bookkeeper Lescault & Walderman

Being an accountant usually involves a higher level of interpreting and forecasting numbers than bookkeepers, who mainly just keep the records. Accountants have more education under their belts, and with additional qualifications come higher rates. Bookkeeping requires fewer skills and work, so hiring a bookkeeper instead of an accountant can save you money in the long run. Cameron McCool writes for Bench, the online bookkeeping service that pairs you with a dedicated bookkeeping team and elegant software to do your books for you. When a bookkeeper is experienced with businesses in your industry, they understand common expenses—and can let you know which business expenses are tax deductible. You should consider your business’ needs, transaction volume and budget before you hire a bookkeeper.

An accountant or a bookkeeper can help you manage your day-to-day finances. These experts monitor cash flow from different accounts, bills, and invoices, and they can organize your books to improve your business’s money management. However, before you hire a bookkeeper or an accountant, it’s important to understand the differences between the two, the pros and cons of hiring one, and what to look for in a bookkeeper. Keep in mind that you will be looking for bookkeeping candidates that best suit your company’s culture.

Disadvantages of Hiring a Bookkeeper

You could use a specialized staffing agency to find skilled candidates who would be a solid match for your company until you’re ready for a full-time hire. Remote bookkeeping services, like firms, have multiple employees. This lets them avoid the kinds of service gaps that may crop up with an individual freelancer. This typically comes at the end of the financial year, when clients’ books need to be “closed” for tax season.

• If a bookkeeper is an accountant, they may charge $150 per hour or more.
• According to accounting.com, the short answer to this question is that bookkeepers earn approximately $40,240 per year – or an hourly rate of $19.35.
• Meanwhile, here are answers to some questions you might have about hiring a bookkeeper for your company.
• Our Salary Calculator provides real-world salaries by location and can help you determine what level of compensation bookkeepers in your city or state might expect to earn.
• In its simplest form, they’re responsible for maintaining financial records.
• Plus, your time is money that you could be using toward getting your new business running and bringing in the revenue to move to the next level.

Let us assist you in hiring a bookkeeper who can help your business stay on top of receipts, invoices, expenses and more during this hectic period of business activity. An active membership in a professional group also helps a bookkeeper stay current with news, trends and best practices in the industry. Also, members sometimes carry professional indemnity insurance through these groups, which offers added peace of mind for you. You also want to be sure that your bookkeeper has experience with the recordkeeping system and software your organization uses, or you’ll need to provide training. Even if your bookkeeper is insured against errors and omissions, you—or your business—are on the hook in case of errors. The effect of incorrect books could range from misinformed business decisions on your part, to misreported taxes (and the resulting IRS penalties) on the part of your business.

How confident are you when it comes to communicating with our organization and informing us of the nature of our accounts?

While most people consider themselves to be good people, many struggle to effectively show up as allies. Allyship is about consistent, intentional actions over time rather than one-and-done, check-the-box activities. With more than one founding partner, issues could arise where each partner has some idea of how the money should be spent and how to easily access it. Otherwise, conflict could arise that could impede the progress of your startup. However, your bookkeeper may enjoy those tasks, so it makes sense to hand over these areas to someone who does them — and does them well — because of that motivation. The most efficient gym software is user-friendly, streamlined, and allows your employees to easily learn its functionality.

The tips, advice, and guidance offered by a professional bookkeeper will more than likely pay off and get you on the right track (or help you stay that way). Your bookkeeping methods might work for you and you may not have any issues handling your books yourself, but it’s not your primary area of expertise. Skilled bookkeepers notice and identify trends that can help you capitalize on — or avoid — a situation, season, or event. For example, if businesses within your industry typically see an increase in sales during autumn but yours has not, a bookkeeper can help figure out why, then recommend a solution. Together, these financials can become overwhelming, especially if you’re not using dedicated bookkeeping software (or using it to its fullest potential). Whether you need help with your bookkeeping or you just need to polish up your DIY skills, there are some very good reasons why you should still consider hiring a bookkeeper.

Ready to get started with a bookkeeper?

Putting 5 job postings up for consideration is possible – and there’s no cost to do so. This is the ideal platform to use if you are trying to source full-time bookkeepers. With the American Accounting Association, you’ll attract a vast and diverse candidate pool. Posting a job starts at $299, and you’ll find that there is no word limit when it comes to posting. Now you have written your job description, your next challenge is to source the right bookkeeper candidates. [YOUR COMPANY NAME] is looking for a bookkeeper who will track our financial data and monitor our accounts payable and receivable books.

Additionally, they can review your source documents and post entries into your accounting software. A freelance bookkeeper is that they can provide valuable insights into your business finances. They are not emotionally invested in your business, they can offer impartial advice on how to improve your financial systems. This can be helpful for business owners who are trying to make informed decisions about their finances.

Pros of hiring a bookkeeper

Your company may be growing, and you’re having trouble keeping track of your finances. Or you may be thinking about selling your business down the line, and know you need immaculate books to do so. You already know it’s time to hire a bookkeeper for your business. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. They save you time by handling all the daily financial work for you and allow you to concentrate on the running of your business.

Bookkeepers are in charge of the day-to-day work; they keep the accounts detailed and concise. They also record credit card activity into QuickBooks and update owners https://www.bookstime.com/articles/how-to-hire-a-bookkeeper on accounts receivable. With a bookkeeper working for you,he or she can stay on top of this and send out reminders to make sure your cash flow remains optimal.

A bookkeeper can make it easier to do your taxes and give you more time to run your business — but they can cost more and take time to get used to. Hiring a bookkeeper can be one of the most relieving and rewarding investments your business can make. If your business is growing and you’re at the point where your finances are becoming too overwhelming to handle on your own, a bookkeeper can provide you with these benefits and more. See the pros and cons of hiring a bookkeeper below to see if it’s right for you and your business.

Having a CPA is important but usually far more expensive than a bookkeeper. Bookkeepers are more involved in the day to day, keeping the records you’ll need to give to your CPA at tax time. They are also able to produce forms your business will need throughout the year and for important milestones—like getting financing. Two good answers are using digital approaches, such as accounting software to enter data accurately and keeping your workspace clutter-free. But, look for answers that show your bookkeeper candidates’ ability to use their organizational skills to optimize their workflow and productivity.

How do you stay organized as a bookkeeper?

You likely have no passionate feelings about tallying up payroll or writing checks to pay the bills. Don’t hesitate to reach out to us at FreeUp to help you find a freelance Bookkeeper for your business. We can’t wait to answer your questions about hiring, whether over the phone, through a virtual call, or via email. Accountants also go through formal training to obtain a degree or certification, whereas bookkeepers do not. This makes hiring an accountant more expensive than hiring a bookkeeper.

Regardless of the type of business you run, this business will undoubtedly earn and spend a certain amount of money every year. If you want to be certain that your finances are accurately recorded and that any financial decisions you make are sound, you’ll likely want to hire a bookkeeper. The following takes a more in-depth look at what a bookkeeper is and the pros and cons of hiring one.