The stage of your business’ growth and your comfort level with bookkeeping will determine whether you hire an online bookkeeper. When should you hire a professional bookkeeper?
You may be able to do your own bookkeeping if your business is small and you have minimal bookkeeping. As your business grows and becomes more complicated, it’s time for professional help.
Before you start weighing the pros and disadvantages of hiring a bookkeeper consider these questions:
- What amount of time do you devote to bookkeeping each month? How much time are you able to spare?
- Is bookkeeping an added stressor?
- Are you inept or behind in your bookkeeping?
- Are you ever unsure if your tax or financial records are accurate?
These answers will help you determine how urgently you require a bookkeeper. Follow your instincts.
Benefits of working with a bookkeeper
These are the top benefits of hiring an online bookkeeper and how they can positively impact your business and work life.
1. You get “mission critical” info.
Your bookkeeper prepares a monthly balance sheet, income statement, and, depending on the accounting method you use, a cash flow statement. These financial statements provide you with the information you need to manage your business and file taxes.
Financial statements are prepared correctly and according to accounting standards when a qualified bookkeeper is working on the job. This allows your accountant to quickly and easily file your taxes.
2. This allows you to save money on taxes.
An online bookkeeper who has worked with companies in your industry can help you understand the common expenses and which expenses are tax-deductible.
A bookkeeper who is familiar with other yoga studios may be able to tell you if additional training can be deducted from your taxes.
Additionally, you can deduct the cost of hiring an online bookkeeper and other expenses.
3. Accounting fees could be less expensive.
Imagine that you didn’t prepare monthly financial statements for the entire year and then gave your business records to an accountant in order to file your taxes. They’d have to go back and prepare financial statements retroactively–effectively, doing a bookkeeper’s work.
You’ll pay more because accountants charge more for their services than bookkeepers. You’ll save money if you hire an online bookkeeper to do the job right.
You could be charged more if your accountant has to correct any mistakes. You should have flawless books delivered by a professional and qualified bookkeeper.
4. It will save you time.
You’ll be able to spend more time on client service and business success if you don’t have to do as many administrative tasks as bookkeeping.
It can be difficult to price your time if you are self-employed. To determine the value of your time, you can use an online calculator. This will help you determine if bookkeeping is worth the time it takes.
5. This could even help you increase your profits.
According to a survey, companies see an average increase in profits of 16% when they hire bookkeepers. Online Bookkeepers are able to manage your books efficiently, allowing you to concentrate on other areas of the business, such as increasing profits.