Bookkeeping: Do It Yourself or Hire a Bookkeeper?
Bookkeeping is the process of tracking all the company’s business transactions. This is so you can see exactly where your business is spending money, where the most revenue is coming from, and help you decide which tax deductions you can claim.
Why bookkeeping is important:
- It helps identify more tax deductions – no expenses fall through the cracks.
- Catch financial mistakes – bank errors, invoicing mistakes, etc.
- Get a clear picture of where your money is going – track expenses and income, track busy and slow seasons for planning purposes, and helps avoid cashflow issues the most common reason businesses fail.
Those all sound like legit reasons to make sure to do your bookkeeping right? But how do you go about it?
Well, you have a few choices!
- Do your own bookkeeping.
- Hire an in house bookkeeper.
- Outsource bookkeeping.
Doing your own bookkeeping:
As a business owner, you may opt to do your own bookkeeping to avoid extra expenses, but ask yourself do you have the knowledge and adequate time to take on this job?
Going the DIY route can help keep expenses low and it may not be too complex if you don’t have many transactions. You will also be familiar with your numbers and won’t have to rely on a bookkeeper to let you know where your business stands financially.
But remember this can be time consuming, especially if you aren’t familiar with accounting and risks you not being able to focus on other important aspects of your business. On top of that if you have just recently picked up some bookkeeping skills, there is a chance you may have some hiccups or errors, which can leave you with inaccurate books.
Hire an in-house bookkeeper:
This option can save you time, but can be more costly and may only be best depending on your specific industry needs. For example, if you have a lot of special and specific requests and may need to consult your bookkeeper daily, having someone in house may be a good option. By having someone in house you can count on them to answer your questions right away and will save you from an email or a call to your outsourced bookkeeper. Although don’t weigh out your other options already! Outsourcing can still be a good idea!
Outsourced accounting and bookkeeping have become a more common solution for many small business owners today. This is because outsourcing bookkeeping can be much more economical than having an internal accounting department, which will require you to pay full salaries and employment tax.
You then can focus on what you do best & work on improving the business because after all you did not go into business to oversee your books! The best thing you can do for your business is determine where your time is best spent.
And even if you do have special and specific needs some bookkeepers do offer customizable services to fit what will work best for your business.
At Stratlign we offer stress free and customizable outsourced bookkeeping:
Our bookkeepers are QBO Pro advisors making sure your books are done right and accurately! There is no 800 number over here or a robot you must go through to speak to someone. You just give us a call and get connected with your assigned bookkeeper who will be familiar with your books and can answer any questions that come up for you! This way your service is convenient, and you have all the tools and resources to make the best decisions for your business as well as get through tax season with ease.