Starting a new business requires a lot of different skill sets, not all of which can be possessed by any one person. While entrepreneurs are ambitious people—tireless, driven, and typically fast learners—there will always be certain jobs that can be done more expediently, accurately, and affordably by hiring a professional. Even on a small business or start-up budget, online tools and virtual outsourcing options are widely available to help close the gaps so that a business can launch and operate smoothly. Some important aspects of your business that require expertise beyond your own are best handled by a professional.
Managing the finances is one of the most important parts of keeping a successful business going, but, unfortunately, it is also the job that is cited over and over by small business owners as being the most time-consuming, energy-draining, and complicated. Small mistakes and oversights can become costly errors that will eventually need professional intervention to untangle. Considering doing the bookkeeping all by yourself? Here are 5 reasons to reconsider:
While managing your own personal finances has given you some early preparation for managing the business’s finances, don’t underestimate how much more complicated and time-consuming business bookkeeping can be. Bookkeepers are not only good with numbers; they are good with details, organization, and deadlines.
Small business owners “wear many hats,” but not every business task fits the same. Managing the finances requires a lot of focus and concentration or else accuracy suffers and money is wasted. Bookkeepers have to keep accounts payable up-to-date so that you do not incur late fees or alienate suppliers; they also have to manage accounts receivable to keep the cash flow going strong, and that requires creating and sending out prompt invoices and following up on them to assure the payments are coming in. These are time-sensitive tasks that can’t be put off for a better time. A professional bookkeeper will devote his or her entire block of time to efficient management of your business finances.
Online tools for better financial management are widely available to help small businesses get their finances organized. Do you have time to research and compare them all? A professional bookkeeper has already done the research on automating tools that send invoices, categorize expenses, and create and mail checks for important payments. Your professional bookkeeper already has in place a system for getting business finances streamlined so that you don’t have to start from scratch.
If you’re at a stage where you’ve already been late on making payments or collecting them, the time to fix the books is now. The longer you wait to fix the records, the more complicated it will be, the more prone to error, and the more likely to waste more of your money. Having a bookkeeper intervene to reconcile the accounts you’ve neglected can help put you on the right track and establish a system that works for you going forward.
If your business has been a party of one, you’ve likely managed your own finances without too much trouble. But as your company grows and adds employees, you’ll have payroll and HR considerations to account for. Online programs such as Gusto streamline the HR management and offer payroll processing for growing companies. If processing the payroll is something you lack time or skills to execute, a professional bookkeeper can help you get your payroll records organized and prompt paychecks out to your employees. For those times when a paper paycheck is preferred, online check printing and mailing is a smart add-on, and your bookkeeper most likely already has an online check printing software that can be used for your accounts, as well.
Editor's Note: The image for this blog was created through a combination of Adobe Express (Beta) and Adobe Photoshop (Beta).