Congratulations! You own your own business. Whether it’s because you wanted to be your own boss, pursue an idea or dream, help others, be more flexible, or improve a product, service, or industry—you’re doing it!
Chances are when it comes to roles, responsibilities, and tasks, you’re doing it all-even the bookkeeping. But should you be? Your business may be better served today with more of your attention. Should you delegate the bookkeeping so you can focus on business growth?
It’s easy to find out. Take this quick quiz to see if it’s time to hire a bookkeeper for your business.
Answer These 9 Questions And Find Out If You’re Ready For A Bookkeeper
First things first:
- Are you an accountant or bookkeeper?
Unless your business is bookkeeping or accounting, you probably don’t have the right skills or financial background to handle the books properly. You’ve been doing your best with the books, but you may not know just what a powerful financial tool they can be for you.
- Do you know the difference between single- entry and double-entry bookkeeping, how and why debits and credits are different for asset, liability, and equity accounts and what a turnover ratio analysis of your accounts receivable is?
A bookkeeper knows all of these things. They put all of this knowledge to work for you, so you don’t have to know it or do it.
Something else to consider in addition to the specialized knowledge:
- Do you have time to work on the books?
A recent study showed that 81% of small business owners work nights and 89% work weekends. Chances are you’re not much different. Your time might be better spent managing and growing your business rather than trying to learn bookkeeping and to stay on top of what it requires.
Now let’s talk about your passions:
- Do you love invoicing and paying bills? Reconciling bank statements? Handling payroll? Categorizing expenses?
A bookkeeper does love to do that, plus all of these services:
- Recording and categorizing financial transactions in a general ledger
- Setting up and managing accounting software such as Quickbooks
- Reconciling bank accounts, managing bank feeds, and matching transaction details between your bank accounts, credit cards, and other financial statements
- Handling accounts receivable and accounts payable along with bills and invoices
- Handling payroll and taxes
- Preparing financial statements
- Working with your CPA or tax preparer
What else is so important about the services:
- Do you have financial information like cash flow and inventory at your fingertips when you need it?
Studies show that 74% of entrepreneurs agree that cash flow issues are a significant difficulty. They’re one of, if not the biggest, challenges they face. A bookkeeper makes sure you have up-to-date financial information to understand how your business is performing—to plan for the future, prepare for taxes, and make decisions.
So, how does tax time go?
- Is it generally an easy handoff to your accountant at tax time?
A bookkeeper can help make sure handoff goes smoothly and that your accountant doesn’t have to waste everyone’s time with a lot of questions.
- Are you confident that you won’t have any tax penalties or over-or under-payments?
A bookkeeper helps make sure your payments are correct and on time.
- Are you confident that you comply with local, state, and federal laws and regulations?
No one wants trouble with the IRS or other organizations. A bookkeeper keeps current with laws and regulations to help you stay in the clear.
Last, after all of this financial talk:
- Are you worried about the price of bringing on another employee or using a bookkeeping service?
It’s understandable, especially in the early days of your small business, that you would be concerned about spending money on a bookkeeper when you’re funneling most of your resources into your business. Don’t let the cost scare you away if you find you need a bookkeeper after this quiz. There are affordable outsourced services that start under $100/month. That’s certainly economical compared to potential fines or penalties you could face at tax time. The financial picture they provide can make a big difference to your company’s future.
Now, let’s tally up your scores:
You get 3 points for every Yes answer and 5 points for every No answer.
3 – 27 points: If you’re not an accountant or bookkeeper, way to go! It looks like your books are in good financial hands. However, one solid reason you may want to look into a bookkeeper is to free up your time to spend more of it on growing your business and enhancing your quality of life. Because everyone deserves a break—especially the boss.
28 – 45 points: With scores in this range, it may make sense to look into hiring a bookkeeper. Fortunately, there are many options, including one with hundreds of five-star reviews from businesses that run the gamut from salons and coffee shops to daycares and car repair shops.
If It’s Time To Look For A Bookkeeper, Take A Look At Remote Books Online
At Remote Books Online, we provide all of the bookkeeping services you and your small business need to succeed. As client Thomas Manning wrote: “Been using Remote Books for a few years. They are the best, very easy, reliable, and accurate. Meets my needs perfectly, and will meet yours too.” You can read more reviews here.
Our bookkeeping services start as low as $95 a month and are provided by certified QuickBooks Pro and Xero-Certified Advisors. Our affordable monthly rates also include the accounting software subscription fee and automated, secure monthly bank statement downloads.
To help you get to know us, we offer to enter all transactions, make necessary journal entries, and reconcile one month of your books for free to show you your bookkeeping is in good hands.
So if your quiz score tells you it’s time to find a bookkeeper, don’t be concerned. When you consider how a bookkeeper can improve your financial records, relieve you of worry, and free you to grow your business, hiring one may be the best idea you’ve had since deciding to start your business. Contact us for a quote today.