Starting a new business takes a lot of effort and dedication, as the first years require so much leverage to get on track. A business owner has to deal with a lot of different tasks and has to wear many hats, from building and perfecting his products or services to marketing and selling them. One of the many tasks new business owners must handle is bookkeeping. If you are new to this and have no idea what it takes to keep your business’ books, then bookkeeping can get overwhelming really fast.
Here is how hiring a bookkeeper benefits budding businesses.
1. Concentrate on Your Core Service and Growth
Focusing on your core service is very important, especially in the beginning. You can use all the time you have to build growth strategies, optimize your operations and expand your audience. Bookkeeping can take a lot of this time, slowing down your progress.
2. Taking on Too Much Drains Your Energy
Avoid burnout and stress by channeling your energy towards the most important aspects of your business. If you don’t have an in-house bookkeeper, you would have to navigate through its intricacies on your own. This can lead to mistakes and tiredness.
3. Eliminate Staff Training
Bookkeeping takes a specialized employee or department. Avoid the need for in-house training and managing that resource, plus the associated employment red tape.
4. Reduce Risks of an Investigation
As mentioned before, inexperienced bookkeeping can easily lead to mistakes. An HMRC tax officer will trust professionally kept records more than unqualified self-maintained books.
5. Privacy of Bookkeeping Records
Financial records can hold sensitive information that is best not to be accessible to your regular staff. Avoid complications by outsourcing your bookkeeping and separating it from your main operations.
6. Use Trusted Accounting Software
Bookkeeping software is extremely varied, specialized, and advanced. Make the best out of these available resources by working with someone who knows the domain. With bookkeeping software, your VAT submissions can be made online and in real-time. Expenses can be recorded on your smartphone, and much more.
7. Accuracy & Visibility
Having someone handle your bookkeeping professionally helps you be constantly aware of your expenses, balance, tasks, etc.
When Not to Hire a Bookkeeper
There are some situations when hiring a bookkeeper might not be the best solution. Here are three reasons to consider having your bookkeeping in-house.
To keep all your financial data private, keep your financial operations exclusively in-house.
If it’s important for you to have 100% control over your finances, handle all the bookkeeping yourself.
If you need immediate communication with the bookkeeper, have your own employee or department handle the bookkeeping. They will directly report to you whenever needed.
Over to You
As you can see, there are several benefits to hiring a bookkeeper to handle your finances. There are also certain situations when business owners might want to choose to handle all the bookkeeping themselves. Think about what your business needs and what’s best for fueling your growth.