Is It Time to Hire a Professional Bookkeeper?

December 31st, 2011 BY Claire Moore

Why putting it off could be costing you money.

Why is bookkeeping so important to a business like yours?
busy man

  • You need to know from one month to the next if you are making a profit. Because if you aren’t making a profit it’s all for nothing
  • You need timely financial information to make important decisions about setting prices, hiring employees, expanding your products and services, your marketing plans, etc.
    • If you spend money to advertise your business, will you know if it paid off?
    • If you feel as if you need to cut your expenses, will you know which ones to cut?
    • Do you know which products or services are making you money and which aren’t?
    • Do you know which customers are bringing in the most revenue and which aren’t?
    • You need to be able to communicate with your banker for loans and lines of credit
    • If he asks for a cash flow statement, will you be able to produce one?
    • If you are applying for a credit line with one of your vendors, would you be able to produce a description of your purchasing procedures?
    • You need to be able to pay what you owe in taxes; no more, no less
    • You need to be able to convince investors that your business is worth their attention
    • You need to create and follow a budget but you haven’t a clue how to start

If these issues keep you up at night….
Maybe it’s time to consider hiring an outside bookkeeping service.

Why hiring a professional bookkeeper is a good idea:

  • You will save the extra employee’s expenses for payroll taxes, sick pay, vacation pay, insurance: medical, dental, worker’s compensation.
  • You will save on space in your office for another employee
  • You save yourself from having to manage another employee
  • You avoid the problems of employee turnover

What to look for when choosing a professional bookkeeper

  • Do they have experience working with a business your size?
  • Do they have a computer system for doing bookkeeping?
  • Do they have experience working with a business in your industry or specialty?
  • Can they offer extra services such as word processing?
  • How long have they been in business?
  • Do they have recommendations from other businesses?
  • Can they explain clearly what they will and will not do for you?
  • Can they explain clearly their fee structure?
  • Do they have any professional designations, memberships, certifications?
  • Is the bookkeeper willing and able to work with your CPA to prepare necessary information for audits and taxes

Should you hire a CPA or a professional bookkeeper?

A CPA will charge about $71 per hour for bookkeeping according to the Intuit 2007 survey while bookkeepers charge between $30 and $60 per hour generally. The survey included both CPAs and bookkeepers and revealed that the average hourly rate for bookkeeping services was $61. While many bookkeepers and accountants charge by the hour, the Intuit survey indicated a movement toward a flat monthly fee for services with the average monthly fee being $321.

You may consider contracting with an independent bookkeeper for your monthly services and a CPA for management and tax services.

Is It Time to Hire a Professional Bookkeeper? / Small Business Bookkeeping Network by is licensed under a

Categories: For Business Owners

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Is It Time to Hire a Professional Bookkeeper? / Small Business Bookkeeping Network by is licensed under a