Dealing with numbers is the one thing all businesses have in common. Every business, no matter their size needs to keep an accurate record of their financial transactions – from daily sales to yearly taxes.
While it is certainly possible to do it themselves, not all business owners are well-versed in, or have the time to work out their numbers every day. As a result, hiring an independent bookkeeper may be the best choice to further your business growth.
However, before making any rash decisions, first know when it is the perfect time to hire a bookkeeper and how you can tell who is the best fit for your business.
When to hire a bookkeeper?
Before jumping on to the ‘I need a bookkeeper’ bandwagon, first consider if it is the right time for your business to hire a bookkeeper. Ideal scenarios include:
- in the case that your business is steadily growing and recording your finances is taking too much time away from the time you spend working on the core growth of your business,
- if your compliance duties (e.g. taxes) are getting too complicated, and
- if you are finding it hard to keep up with your business’ monetary transactions regularly.
What are the advantages of hiring a bookkeeper?
A bookkeeper’s first task is to help you run your business without the added stress of daily financial transactions and tedious bookkeeping tasks in your way. Hiring a bookkeeper can be advantageous for your business, as it would mean:
1) Having another person who understands your business:
A bookkeeper will be alongside you, dealing with the financial accounts of your business everyday. This means that they will grow to understand your business’ finances as well as your business’ overall trajectory.
By sharing their insights with you and being the first to inform you of any internal financial concerns, bookkeepers can help your business grow in the right direction.
2) Helping you manage your business’ cash flow:
Bookkeepers will keep a close eye on your business’ day-to-day accounts. They will instantly and accurately record your business’ monetary transactions and with their expertise, can help you keep your finances under control as your business grows.
3) Improving your relations with banks and investors:
Having a reliable bookkeeper by your side may help boost the chances of your business successfully acquiring a loan from a bank or gaining the monetary support of an investor.
Banks and investors will be more likely to work with your business if you can provide them with accurate and detailed reports on your business’ financial health. With instant reporting and financial analysis services offered by most bookkeepers, they will be able to help you deal with banks, investors and shareholders as your business grows.
If you are convinced that hiring a bookkeeper is the next big move for your small business, consider trying out the expert cloud-based bookkeeping services offered at POP Business. POP Business houses only the most experienced accountants along with intuitive bookkeeping software and offers professional and affordable bookkeeping services to fast-track the growth of small businesses.
Co-author: Richelle Lau
Richelle is a Sydney-based writer finishing up a degree in Journalism and International Studies, and is always keen to try out all the unique experiences Sydney has to offer!
John Wilson is a branding and website design expert. He boasts over 10 years of digital marketing experience. He loves to share his expertise and insights on all things digital marketing by keeping this blog up to date.