Feeling overwhelmed by the amount of time you spend on bookkeeping ? Yet you can’t do it properly? Are you losing track of your financial data? Managing your own account is getting harder?

If any of the answers is yes, it’s time to hire a bookkeeper!

Your business will flourish if you can record and manage the financial transactions well. There is a systematic approach to keeping track and managing finances, that’s called Accounting. It all starts with proper bookkeeping, and recording the transactions in your ledger books.

You may do your own bookkeeping, but can you do it as efficiently as a professional? Do you have enough time for it, or should you really focus on doing this repetitive work? The answer is probably no, as you can’t maintain everything as smoothly as an expert.

So the question is, should you hire a bookkeeper? The answer for most businesses is – Yes.

Let’s take a look at why you need a bookkeeper and what the benefits are!

Who is a Bookkeeper?

First thing first. Who is a bookkeeper?

A bookkeeper is someone who records, maintains, and analyzes a business’s financial transactions, including sales, expenses, purchases, invoices, and payments. They are the experts in bookkeeping who will take care of the financial health of your organization.

Imagine them as a financial GPS for your company!

Can you imagine going somewhere new without a GPS?

GPS will navigate you towards your destination.

A bookkeeper is exactly like that! They are the ones who will keep you on track with expenses and income so that you can achieve your business goals.

What Do They Do?

A bookkeeper has many responsibilities, as they are the ones who organize your sales, purchases, payments, and receipts. Whether the business is large or small, their main duty is to record all the financial transactions accurately. Processing your receipts, expenses, and payments are also part of the job.

A good bookkeeper will analyze the numbers and recognize the gap in cash flow. Annually, they will provide a clear picture of your company’s overall financial health. Which will later help you make the right decision for the betterment of the company. 

The responsibilities of a bookkeeper are:

• Collecting data.
• Categorizing and organizing the data
• Calculating pay and deductions
• Help the business prepare for tax season.
• Preparing annual financial reports. 
• Financial planning and forecasting.
• It helps businesses prepare a budget.
• Maintaining accuracy between your books and bank account.

With accurate bookkeeping, you’ll have valuable information like how your business is performing, if you’re making a profit, which marketing campaigns are successful, and more. Armed with this information, you’ll be able to make informed and timely business decisions.

Before you hire anyone, you want to make sure it’s worth the cost.

Benefits of Hiring a Bookkeeper

Bookkeeping is a necessary step for any business that you should not skip. But you can’t manage the time to do it yourself. So you can hire a professional bookkeeper for that. It can strengthen your business over time.

Especially if you are planning to expand your business, then you definitely need a dedicated bookkeeper. 

Bookkeepers Are Experienced.

If you do it yourself, then you are bound to make some errors. An Experienced bookkeeper tends to make fewer mistakes because they are experts. They understand accounting principles, industry regulations, and taxes better than you.

They can give valuable advice, which will be necessary for the business in the long run. They can look at your financial history, pinpoint areas for improvement, and provide valuable insights to help you improve your financial position.

Save Business Owners Time

Bookkeeping is a time-consuming task, especially if you are not experienced. It will take you hours to go through every receipt, invoice, and other transaction. Whereas, as a business owner, you can spend this precious time on strategy planning, product development, customer service, and other important business activities. 

An experienced bookkeeper will handle the daunting task efficiently for you. That will allow you to focus on more important aspects of business tasks, such as sales, marketing, and product development.

Financial Accuracy 

Bookkeeping plays a vital role in the accuracy of your financial statements, which are the foundation of critical business decisions. If you make any mistakes while recording the data, it will eventually have a negative impact on your final balance sheet.

A bookkeeper always double-checks the entry regularly to ensure 100 percent accuracy. Inaccurate accounting can result in a variety of legal and financial penalties, such as fines, penalties, and even bankruptcy. A good bookkeeper will take precautions to avoid making mistakes and keep the financial records up-to-date.

Detailed Financial Reports

Bookkeepers also help prepare financial reports for the business. They provide valuable insights regarding a company’s performance, profitability, budgeting, and sometimes even help to create a strategic plan. 

This detailed financial report plays a vital role as they provide a vivid picture of the financial aspect of the business. It’s a meticulous task that can’t be handled by anyone, so a good bookkeeper will provide you with that.

Cash Flow Management 

Cash flow management requires an expert hand. If you hire a bookkeeper, they will record your income and expenses, which will showcase where the money is going and from where you are getting it. 

With the past data, an efficient bookkeeper can even make future predictions about monthly or annual revenue and expenses. This knowledge will help the decision-maker manage liquidity and guarantee that the company has enough cash to meet its financial obligations and requirements.

Audit Preparation

Every business owner gets nervous when the time for an audit comes. If you don’t handle your transaction accurately, it will give the auditor a hard time.

So how do we prevent that? A bookkeeper can prevent that easily by making sure that each and every transaction is thoroughly recorded and ready to access at any time. It will save a lot of time for the auditor, which will ensure a smooth journey for them. 

Fraud Prevention

A bookkeeper can even prevent fraud activity within the business. They are trained to look out for suspicious activity. They check the Monterey transactions or look for any inconsistencies. When they analyze all the records, they can find any fraudulent activities.

Considerations While Hiring a Bookkeeper

Now that you know why you should hire a bookkeeper, how do you hire a good one? Well, there are some things you should consider before hiring anyone. 

• You need to identify what service you need from your bookkeeper. It’s important to understand what your business needs are. Do you want basic bookkeeping or the whole financial analysis? Bookkeepers can be generalists or specialists. Now it’s for you to decide what kind you want. 
• Qualification is another thing you should look for. A qualified person will do his job more efficiently and faster than others.
• An experienced bookkeeper can be a great addition to your company. Why is that? They are more accurate and can give their valuable opinions. 
• Bookkeepers should have knowledge about the latest software for bookkeeping or other relevant software. They should be able to adapt to other kinds of software or tools that will be needed to perform tasks successfully. 
• Look out for references. You should hire a reputed bookkeeper for your business. 
• Communication is key to a good working relationship. Make sure your bookkeeper can clearly explain financial concepts and is able to answer your questions.

To sum up, hiring a bookkeeper can have many advantages for businesses. From ensuring correct financial record keeping and tax compliance to saving lots of time, providing valuable financial advice, a bookkeeper is indeed an asset. Their competence can be a game changer for your business health which will help you to make better decisions for the betterment of the company. They are freeing you from the heavy burden of bookkeeping, so that you can focus on other important parts of business and achieve your goals.

How Bookkeeping Deck Can Help You?

With our years of expertise in bookkeeping we can help you by providing customized bookkeeping solutions. Our team of qualified bookkeepers are skilled in the latest financial rules and regulations.

You can rest easy knowing that your financial documents are being carefully managed by our team, as we Bookkeeping Deck are committed to maintaining privacy. Our service can range from recording transactions to preparing tax documents.

It will save your time so that you can focus on growing your business.We offer affordable, flexible plans and provide tailored services and are always available to assist you.

So contact us today!