The Pros and Cons of Hiring a Bookkeeper

Why should you hire a bookkeeper? This is the question asked by business owners.

Regardless of the type of business you run, this business will undoubtedly earn and spend a certain amount of money every year. If you want to be certain that your finances are accurately recorded and that any financial decisions you make are sound, you’ll likely want to hire a bookkeeper. The following takes a more in-depth look at what a bookkeeper is and the pros and cons of hiring one.

What Is a Bookkeeper?

Bookkeepers are professionals who are tasked with preparing accounts and documenting any financial transactions that take place on a day-to-day basis. The financial information that a bookkeeper gathers must be accurate and up-to-date to ensure that the business they work for makes the right financial decisions. It’s common for bookkeepers to take part in strategy development and tax preparation.

Reasons to Hire a Bookkeeper

There are many reasons why you should consider hiring a bookkeeper. For one, you’ll gain easy access to your company’s financial information, which may allow you to make better decisions with your budget. Your taxes will also be in order when it comes time to file, which reduces the possibility of going through a time-consuming IRS audit. The reports a bookkeeper creates can give you information on your company’s expenses, revenues, and profitability.

Pros of Hiring a Bookkeeper

There are many benefits of having a bookkeeper who can keep track of your company’s finances during the year. The primary advantages include:

  • Bookkeepers have more experience with handling records and should be able to minimize the filing errors that are made each year
  • You should save money by hiring a bookkeeper who can lower the amount of financial penalties your business faces
  • You’ll gain an outside perspective regarding how your business and budget are managed, which can help your company spend more efficiently and cut costs

You’ll save ample amounts of time when the act of organizing your company’s books is handled by a bookkeeper as opposed to yourself

Cons of Hiring a Bookkeeper

There are a few issues that come with hiring a bookkeeper, which extend to:

  • Hiring a bookkeeper can place your data at risk since this individual will gain access to banking passwords and account numbers
  • Any mistakes by the bookkeeper are the company’s mistakes
  • The bookkeeper you hire may charge hidden fees

Types of Bookkeepers You Can Hire

Now that we have looked at the pros and cons of hiring a bookkeeper let’s look at the types of bookkeepers available to hire. When searching for the right bookkeeper to hire, keep in mind that there are several different types, which include:

  • In-house bookkeeper – This bookkeeper will be an in-house hire who gains full advantage of your company’s resources, benefits, and salaries.
  • Agency bookkeeper – It’s common for larger businesses to hire agency bookkeepers to ensure that there are a team of bookkeepers handling finances.
  • Freelance bookkeeper – If you want your accounts to be consolidated once every year, hiring a freelancer can help you keep costs down.

Outsourced bookkeeper – It’s possible to outsource bookkeeping duties to a completely separate company that will train a team to handle your bookkeeping needs while also covering bookkeeping expenses.

As we have seen there are many benefits of hiring a bookkeeper for any business that wants to make sound financial decisions and keep their books balanced every year. Without hiring a bookkeeper, you could make costly mistakes and may be more at risk for an IRS audit. The type of bookkeeper you hire depends on your company’s needs.

To learn more about if your business will survive if you accountant resigns and to do an assessment click here.

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