Can I Do Bookkeeping Myself?
Ah, yes. A question every business owner likely asks themselves at one point early in the life of their business.
Let’s get straight to the answer: Yes, you can do bookkeeping yourself, but only to a certain point.
Many small business owners will likely start out doing their own business bookkeeping. This could work early on when a business has just begun and has minimal activity going on. Owners can research and familiarize themselves with the basics of bookkeeping and accounting to try to get started. However, as a business grows, hiring a bookkeeper leads to many benefits that owners will eventually realize.
Benefits of Hiring a Bookkeeper:
Time
Time is precious, especially for a busy business owner. Once a company begins to have too many transactions and expenses, bookkeeping can become a time-consuming task that owners eventually do not have time for. Having a dedicated bookkeeper will ensure that the owner gains time to focus on more important business tasks.
Expertise
Bookkeeping may be simple early on, however as a company grows it can become a complex task. A skilled bookkeeper will come with the expertise needed to record activities properly and prepare financials with accuracy.
Not Missing Out
When you hire a qualified bookkeeper, their expertise will allow business owners to take advantage of various methods to book expenses and record activities strategically. This means you won’t miss out on future tax benefits that could be unveiled in the future.
Proper Software
The software needed to keep track of the company books is important to sustain long-term business growth. Early on having an Excel sheet or manually recording expenses, may work. However, overtime as activity continues to duplicate, an accounting software such as QuickBooks, is needed to store the company’s history and prepare the books with accuracy.
Insights
When you hire a bookkeeper, you will have constant access to your company financial statements. Important statements owners will benefit from analyzing are the profit and loss statement and the company’s balance sheet.
Your bookkeeper will prepare the financial statements and with their help, or an accountant’s guidance, owners can gain insights into their company’s financial standing to make better business decisions. This will help uncover company strengths and weaknesses to discover methods to sustain or change to create and reach goals.
Audit Protection
Having a bookkeeper will help shield your company in the unfortunate situation of an IRS audit. This is one of the most daunting and stressful events that can occur as a business owner. However, with a bookkeeper who is familiar with the rules and regulations of accounting, your company should be following regulations that will prevent and protect you from audits.
Having financials that are ready to present due to regular bookkeeping will lighten the stress during the time of an audit. No need to stress when your company has been well prepared and following regulations regularly.
Help You Save
Having your own bookkeeper can help save you money. By discovering company insights and preventing costly audits, the investment you spend on a bookkeeper can help you save down the line.
Peace of Mind
Owners typically gain peace of mind when a skilled professional is hired to take care of their bookkeeping. They will gain the above benefits and can focus energy elsewhere. Peace of mind has no price tag.
Need to find a bookkeeper to partner with you and your business? Contact us today and we’re happy to explore what will work best for your needs.