“Do I really need…X” is something that many of us have asked as entrepreneurs. If you are a solopreneur, small business owner, or even running a mid-sized company, keeping your team lean is a priority. As a result, asking yourself if hiring a part-time bookkeeper is a good investment makes sense. Nevertheless, adding this financial professional to your team is one of the best decisions you can make for your company’s financial health.
What is a Bookkeeper?
Bookkeepers are sometimes confused with accountants, but their role is distinct. A part-time bookkeeper would track your daily transactions, sales, cash flows, and expenses. They can also handle financial transactions on your behalf. While an accountant would manage budgetary analysis, tax preparation, and financial statements, part-time bookkeepers are in charge of taking on the day-to-day monitoring of your business activities. These professionals make it easy to hand over accurate monetary information to an accountant for their assistance.
Are Part-time Bookkeepers Worth the Investment?
According to the Small Business Accounting report, 60 percent of small business owners feel they are not very knowledgeable about accounting and finance. Also, a report by SCORE found that 40 percent of the entrepreneurs who responded said bookkeeping and taxes were the worst part of owning a small business. Couple these stats with the time that goes into bookkeeping, and it is easy to see how not hiring a part-time bookkeeper is a considerable mistake. So, what are the ways that a part-time bookkeeper can benefit your company?
Take a look at our list:
You Could Be Saving Time
Think about it; let’s say that you hire a part-time bookkeeper for 10 to 20 hours of work. That is two to five hours a day. This scenario means that you could be saving 10 to 20 hours a week. This time can go toward strategizing, branding, meeting with partners, or enjoying a better work-life balance. Why take up the time to handle a task that you can pay someone to do—potentially in less time. As an entrepreneur, you have a lot to manage. A part-time bookkeeper can take the tracking of your daily financial transactions and activities off of your plate.
Reduce Errors and Mistakes
Unless you have a degree in accounting or finance, you are dealing with a steep learning curve. You have to take the time to educate yourself on proper bookkeeping practices and any relevant financial business laws. These activities take time away from other responsibilities you are better equipped to handle.
Financial mistakes could bring substantial consequences around tax time and even regarding your business budget. From overspending to missing deductions, you could be making costly errors. Hiring a part-time bookkeeper will ensure that someone with the expertise and know-how is taking care of your books, which will increase accuracy.
Focus on Your Core Business Needs
You can’t develop creative ideas or take your business into new directions if you have to spend two to five hours each day on bookkeeping. When you have a part-time bookkeeper to take care of these responsibilities, you can manage the core business activities that only you can do. There is a hierarchy of duties, and your focus should be on high-value tasks that require your specific skill set.
Hiring a part-time bookkeeper enables you to get that two to five hours to handle these tasks. With the time, you can schedule press events, increase your visibility, develop your next product, or work on becoming the face of your company. Every business has core needs, and a part-time bookkeeper will give you the freedom to address them.
How many entrepreneurs have tried their hand at bookkeeping and fell off? Each day they used an accounting system to track their purchases, scan receipts, and monitor liabilities. However, at some point, they didn’t have the time to keep it up. Unfortunately, your financial dealings do not cease if you are not able to keep track of everything. Purchases are still being made, and sales are—hopefully—still happening.
A part-time bookkeeper can stay consistent when it comes to monitoring your finances. They can deliver regular reports about your business’ financial state so that you can change what isn’t working. You also don’t have to try to understand these reports alone. Your part-time bookkeeper can walk you through the information while providing tips on how to enhance your financial standing.
In this case, spending money on a part-time bookkeeper can save you money in the long-run. While you may have necessary business expenses, there may be some things that you are paying for that you can cut from your budget. You may also be subscribed to services that you no longer need, and are unaware that you are still paying to use.
A bookkeeper can see these expenses, flag them, and discuss their current relevance. You can also ask for this professional to help you determine what is worth your investment and what isn’t. Ultimately, you want to work with someone who understands your business finances and can help you make the best decision about when and what to cut.
Keep Your Investors and Stakeholders in the Know
Do you have investors? What about venture capital funding? If so, funders are going to want to see how money is being managed. Instead of gathering documents in a panic before a meeting, why not let someone else ensure you have accurate financial information readily available? Again, this is where a part-time bookkeeper can show their worth to you.
Your investors are going to want to see your cash flows, debt-to-income ratios, and overall financial health. You want to ensure that they feel confident in their investment. Providing them with accurate financial data as well as succinct reports can accomplish this, which is why a part-time bookkeeper is necessary. They can provide essential financial information when you need it.
Make Hiring a Part-time Bookkeeper a Priority
As stated above, 40 percent of entrepreneurs dislike the bookkeeping process. That is a large number. If you are a part of this group, then hiring a part-time bookkeeper should be a priority for you. Not only can you save time and money, but it can put your mind at ease when it comes to tax preparation and maintaining financial health.
You have a lot to gain from adding a part-time bookkeeper to your team. If you are interested in hiring a bookkeeper and staying within budget, we recommend checking out Bench.co, they can take all the stress out of finding an experienced bookkeeping professional.
You deserve a straightforward bookkeeping process. We hope these resources are a help to you as you take back your time and hire the best bookkeeper for the job.
I highly recommend Bench, a cloud-based service that pairs you with a team of bookkeepers to do your books for you!