When starting a business, you might wonder when you should hire a bookkeeper. There are many new business owners who feel that they are able to complete their company bookkeeping themselves because it is still small. While this might be possible, it is essential that you know when you should hand this responsibility to a bookkeeper.
Do You Need A Bookkeeper Or An Accountant?
When looking at finance personnel, you might wonder whether you need a bookkeeper or an accountant. The truth is that you will need both at some point. A bookkeeper will complete the daily financial record keeping of your business while an accountant is able to analyze the bigger picture and sign off on final accounts.
An accountant can often be hired on a monthly basis to complete some work that you might need. However, you do require a bookkeeper at all times. Many new businesses are able to hire a bookkeeper part-time to start, but if your business grows you need to consider having a full-time bookkeeper.
When You Should Hire A Bookkeeper
Many entrepreneurs state that you should look at hiring a bookkeeper within the first few months of starting your business. You will generally be too busy with other aspects of your business to worry about recordkeeping which could make handling the bookkeeping yourself difficult. After the rush of the initial months, you will want to start looking at how your cash flow works and where your money has been going. This is where a bookkeeper is invaluable.
Any startup can hire a bookkeeper part-time in the first months because there will not be much for them to do. However, as your business grows you will need to look at increasing this. A bookkeeper is in charge of your receipts, expenses and payroll. These are all essential elements of your business that will help your company function correctly.
In-House Or Outsource?
When it comes to hiring a bookkeeper, you need to consider whether you should have someone in-house or if you should outsource your work. Most small business startups will start with outsourced bookkeeping because the amount of work will not justify an in-house bookkeeper. However, once you reach a certain number of employees or revenue over a certain amount per annum, you need to look at an in-house bookkeeper.
When you outsource your bookkeeping, you need to ensure that you are using a reputable company. There are many sole bookkeeper practices that you can use, but you need to ensure that they do not have too many clients. Bookkeepers who have too many clients could become overwhelmed and start to cut corners.
If you are starting your own business, you need to consider hiring a bookkeeper. While it is possible to complete the bookkeeping yourself when you start, you need to hire a professional bookkeeper to ensure that you adhere to financial regulations. Hiring a bookkeeper is essential to good recordkeeping and will lower the costs associated with using an accountant. To learn more about bookkeeping please visit bookkeeping.com