Is It Time to Hire a Professional Bookkeeper?
Why putting it off could be costing you money.
- 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.
Categories: For Business Owners