Why Should I Hire an Online Bookkeeper to Manage my Accounting?

My Life My Terms

Why Should I Hire an Online Bookkeeper to Manage my Accounting?

 

Why should I hire an online bookkeeper to manage my accounting? When you have a start-up, small or online company, it is a great idea to outsource your bookkeeping and accounting.  So, you’re in the throes of running an online business and LOVING it! Awesome! As your business starts to grow, you’re going to notice some changes. Good changes, but overwhelming changes at the same time. You’re going to get super busy. Without a doubt. There’s absolutely no avoiding this.

There will come a time when you go from the hustling phase of running a business to the swept of your feet phase. And that’s good right? You want to be busy in business because that means (hopefully) that you’re helping people and making money. But when you’re this busy, how do you keep on top of everything, especially your business finances?

Outsource and Delegate

Being an online business owner means that you’re wearing all the hats (metaphorically). You’re the front of house, the customer support team, the lead generator, the marketer, the closer AND the bookkeeper. What if you could take just one thing off your plate to make running your online business just a little easier? What one hat would you be glad take off? For most people, it’s the bookkeeping.

Keeping on top of finances among everything else involved in running a business is not easy. Not to mention that it’s nowhere near as fun as interacting with your clients and doing the work that you love.  The main reason you started an online business, right? In this article you’re going to find out why you should hire a bookkeeper for your online business, what services they can provide to help make running your business easier and the all-important question – how much does a bookkeeper cost? What are you waiting for? Keep reading!

What does a bookkeeper do for a small business and what services do they provide?

Bookkeepers are people who record the financial transactions of a business. They can also:

  • Keep track of sales, payments, purchases and receipts for your business
  • Look at internal business processes to see if they can be fine-tuned to increase productivity
  • Record financial information so that your tax provider can quickly download your tax information.
  • Pay your bills. Handle your invoicing. Process your 1099s at year end.
  • Reconcile all banking and credit cards.
  • Organize financial data on a regular basis.
  • Provide you with many great management reports so that you know exactly where you are.
  • Manage your sales tax reporting
  • If necessary, process payroll and process all necessary government payroll processing.

Bookkeeping is often one of the services offered by accounting / finance firms. This is useful because it means that your tax-preparer can quickly and easily process the financial data that your bookkeeper has recorded. Bookkeepers will also:

  • Keep transaction details like receipts and invoices
  • Record all your business financial data in accounting software using current and practiced accounting methods
  • Help you to make sense of your numbers and costs

While these are the day to day tasks of bookkeepers, they are highly skilled people with a wealth of financial knowledge. They will also be able to advise you on:

  • Solutions to refine and optimize your business processes and recommend tools to help you do so
  • Payroll services
  • Rescuing previous bookkeeping work that might have been done by someone who’s inexperienced
  • Training you to use accounting software

A good bookkeeper is your business partner and will help you to run your businesses finances smoothly.

Why do I need a bookkeeper?

Simply put, you need a bookkeeper, so you can focus on the areas of your business that you’re most passionate about and that require more of your attention. Most business owners aren’t interested in recording every fine detail of their business transactions. I’m sure you can relate to this. Most small online businesses have:

  • A simple business model
  • High rate of transactions and lots of customers
  • Many sales a month
  • Supplier and subcontractor invoices

That’s a lot to keep track of as well as running your business. And I’m going to guess that bookkeeping isn’t one of your favorite past times. You don’t have time to learn or understand it. Without proper bookkeeping, it could be so easy for transactions to slip through the net. You could forget to pay a subcontractor or forget to invoice someone for your services. Mistakes get made which doesn’t help with running your business and leads to inaccurate financial reports. Bookkeepers to the rescue! They can take this burden off your shoulders and lighten the load of running your business. What could you do with all that freed up time?

What’s the difference between accountants and bookkeepers?

I’m so glad you asked! Bookkeeping is a vital service for any business, but how is it different to accounting? These two services are complementary to one another. Bookkeepers do the day to day tasks and bring your accounts up to a high standard of detail and accuracy. They can also provide advice on financial matters like what to do if someone is late paying one of your invoices. Accountants typically offer bookkeeping as one of their services, but they usually specialize in tax and audit.

If you have an accounting firm that audits your books, you will need a different firm to handle your bookkeeping.  This insures the auditing firm is independent. A bookkeeper can provide all the services that a CPA provides except for Independent Audited Financial Statements. Bookkeepers must be registered agents with the IRS if they want to prepare tax returns. Most small businesses will not need a CPA firm unless they are looking for lending or investors that require annual independently audited financial statements

When should you hire a bookkeeper?

The short answer is, NOW. If you haven’t hired a bookkeeper already, you need to do this ASAP. Don’t leave hiring a bookkeeper too long into starting your business, you’ll end up with several months worth of receipts and invoices to be processed. Leaving this to pile up it could be a nasty mess to untangle. You might forget who you invoiced for what services and what all your receipts were for. ALL your business transactions need to be detailed and accounted for.

How much does it cost to hire a bookkeeper?

The answer might surprise you. It doesn’t have to cost as much as you might think. But it’s a necessary expense and will only help your business in the long run. Here’s a rough price break down:

DIY Bookkeeping No cost unless you use a bookkeeping software
Part time bookkeeper $400 – $800 a month
Full time bookkeeping $3,000 – $4,500 a month
Online Virtual Bookkeeper $150 – $3,500 a month

I appreciate that there are large discrepancies between the prices, but I’m trying to account for the lower, budget and the high end of the spectrum as not to mislead you.  There are many factors to determine the cost.  Some include:

  • Number of bank accounts to reconcile
  • Number of transactions
  • Will payroll service be involved? If so number of employees and states.

In summary

Hire a bookkeeper. Hire one right now. It’s worth every penny. They will free up your valuable time and allow you to focus on what really matters to you. Running your business and helping your clients. A good bookkeeper will become your business partner and help you to grow. What are you waiting for? Go find yourself an awesome bookkeeper! For information on my bookkeeping services please contact me here.  You may also visit my site below.

https://tralissainc.com/

To see related articles by Traci Yates

http://trulytraci.com/5-tips-for-hiring-the-right-bookkeeper/

http://trulytraci.com/compare-the-top-4-accounting-software-systems-which-is-the-best/

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *