I am a very small business…….do I really need a bookkeeper?

All small business owners start with great intentions and ideas about how their business will run. Small business owners are so focused on getting clients or getting the daily operations up and running that they forget about all those receipts, and the paperwork just keeps piling up. Even if you buy Quickbooks, somehow those transactions still have to get from the paper into the computer.

So, how much is your time worth? Is networking, cold calling, or pounding the pavement interacting with your client base worth more to you than sitting at a computer entering debit card transactions?

When you are first starting out and watching every penny it is a very hard decision to make. How much does a bookkeeper cost anyway? Less than you might think. Bookkeeping rates vary greatly so talk to your business associates. Chances are they are either using a bookkeeper or know someone who is and can help you find a good one.

Most bookkeepers are experts in their field………..just like you are an expert in your field……….so below are some points to keep in mind when deciding if you need to hire a bookkeeper.

• It will take an experienced bookkeeper about half the time to do the same amount of work as it would take someone that is not trained as a bookkeeper.
• A good bookkeeper will know a few tricks in Quickbooks to make data entry easier and faster.
• Each time they work for you they get more and more familiar with your data and your company and become faster at getting the job done.
• A good bookkeeper knows how to categorize transactions which will save both you and your tax person time and frustration at the end of the year, and that will save you money!
• Hiring family is easy……..but what happens if it doesn’t work out and you need to fire them?
• This is an ongoing relationship so you have to be comfortable with the person that you choose.

The earlier in your business that you get started with a bookkeeper the less cleanup you will have to pay for and frustration you have to deal with in the long run. Plus, getting your Quickbooks set up correctly in the beginning will help you make better decisions as your business grows.

Not knowing how your business is doing financially will prevent you from making good business decisions which could cause your business to fail. Cash flow does not equal profit and understanding what to look for on your financial statements can be the difference between running a profitable business and not having a business at all.

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