Do I Need a Bookkeeper?

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This is one of the most common questions asked by entrepreneurs and small business owners, so in today’s blog post I’m going to answer it. But first, let’s start with the basics...

What is a bookkeeper?

A bookkeeper is someone who keeps track of all the money coming in and going out of a business. A bookkeeper will maintain highly accurate financial records, prepare for year-end tax and VAT returns, manage payroll and much, much more. It is a highly specialised job that requires significant training and certification.

Businesses are required by law to ‘keep the books’ but they do not have to hire a bookkeeper to do so. Business owners may choose to do their own bookkeeping if they wish. But should you?

Here are several reasons why you need a bookkeeper for your small business:

You can’t do everything

Entrepreneurs and small business owners are exceptionally good at multi-tasking. They often feel they must do everything themselves, including sales, purchasing, marketing, admin and bookkeeping to ensure their business thrives.

This is admirable but misguided. If you’re spending time on tasks like admin and bookkeeping, you’re not spending time on the things you’re good at or that will make you money.

And more seriously, taking on too much can very quickly lead to exhaustion and burn out. In the words of someone much wiser than I; you can do anything but not everything.

It’s not as expensive as you think

Most business owners put off hiring a bookkeeper because they think it will cost them piles of money.

Hiring a bookkeeper is not cheap – you’re paying for a professional service. But it’s also not prohibitively expensive. Most bookkeepers offer a range of packages at varying prices, including budget-friendly options for the self-employed and very small businesses. You can also pick and choose which tasks they help you with for a more tailored service. This means if you’ve got payroll covered but you’re really struggling with VAT, you only pay for what you need.

In addition, a bookkeeper will potentially save you money. They’ll prevent late payment fees, make sure you don’t overpay tax, and will offer invaluable cash flow advice. Many bookkeepers pay for themselves in the money they save the business.

Many entrepreneurs regret not hiring a bookkeeper earlier

I’ve heard numerous entrepreneurs and small business owners say they wish they had hired a bookkeeper sooner. Why? Because their finances got complicated, they spent too much time on bookkeeping when they could have been doing something else, or they made expensive errors.

If you’re thinking about hiring a bookkeeper, I’d strongly recommend doing so as soon as possible. It will save you time, money, and sanity.

If you’d like to discuss your bookkeeping needs, get in touch today. I’m here to help, whatever stage your business is at.