How Hiring a Bookkeeper Can Actually SAVE You Money
Photo by Damir Spanic
You may be thinking: ‘yeah…no! How does spending money every month for someone to keep my books organized save money?’
Xero conducted a study and found that small businesses that hire accounting professionals INCREASE their profits by 16%. Your business’s profitability however, is largely dependent on having a competent, experienced and trustworthy bookkeeper who can effectively manage your books so you have more time to focus on your company’s profits. Here’s a few ways hiring a bookkeeper will benefit your business AND bottom line…
Photo by Luis Villasmil
1.) Cut Down on Some Responsibility
As your business grows, operational responsibilities increase, and may quickly reach the point where financial and accounting duties could become an “I’ll get around to it” scenario. Before you know it your books are a mess, you are months behind and are stressing out! While you started out on the unorganized financial path unintentionally, it can end up costing your company dearly.
Your need time to strategize, for sales and marketing, and to oversee day-to-day operations. These are critical activities that will drive revenue and bottom line profits. Spending hours every month trying to keep up with your books will get in the way of those things.
So, what can you do? Hire a professional bookkeeper! Reducing the number of stressful tasks that use up your attention on a daily basis helps you function more efficiently! Ultimately the time you can get back to focus in on what’s important for your business’s success is worth much more than the cost of the services of a professional bookkeeper.
Photo by Luis Villasmil
2.) Benefits of Outsourcing
By outsourcing your bookkeeping, you avoid the costly and time-consuming process of finding, hiring, training, and paying an employee to handle your company’s financial transactions. Tack on the other expenses involved: payroll taxes, workers comp, temporary disability, etc. You may be able to save even more if you consider retaining an independent freelance bookkeeper (Hello Simply Savvy!) as opposed to the services of a big accounting firm.
Hiring a bookkeeper who does freelance work means you’re hiring someone who works for themself and is therefore probably good at keeping their operating costs down. That fact may ultimately reduce what you have to pay for the service. As long as your company has fewer than 30 employees and doesn’t exceed $1 million in total annual revenues, you may very well only need part-time bookkeeping services.
Photo by Rita Morais
3.) Professionalism and Expertise
If you did your own bookkeeping, any mistakes could potentially have serious immediate and long-term financial consequences for your company. The time it takes to find, correct, and redo errors may put an additional significant divot in your company’s finances. Contrast that to hiring a bookkeeper…Your finances will be managed by a professional. A professional does things right the first time and helps avoid spending more time and money to repair bookkeeping errors. Plus, when tax time comes, no stress! Everything is organized and accounted for. No more scrambling and rushing around to get the documents to your tax professional when it’s that dreaded time of year.
Your bookkeeper can run reports to show you how you are doing each month, where your funds are going, and how your efforts are paying off which are important insights for you as the business owner.
Yes you're paying for the privilege, but think about what you end up GAINING. Accurate, well organized and cost-effective records of your company’s money. In a sense, you’re not only paying for accuracy, but for the peace of mind that a professional bookkeeper provides. And let’s not forget the fact that the cost you pay for the services of a bookkeeper are tax deductible-another WIN!
Photo by Jeremy Thomas
4.) Work Life Balance
You need balance to stay healthy and avoid potential burnout. The truth is, having one less thing to do on the daily (crunching numbers, inputting data, math, no!) frees up your schedule for other things like: spending time with your family, hitting the beach spontaneously, taking a much needed nap, OR <insert what you really want to use your free time on here> Taking time for yourself also can contribute to your financial success…
Just as rest and recovery days are vital to athletes rebuilding their bodies better than they were before (muscle gains), rest and recovery for you as a business owner is directly linked to your quality of life AND your business success (think financial gains). Recharge days increase mental clarity, can eliminate stress and boost your immune system. This creates a domino effect - in a good way - Better mental clarity means superior problem solving and creativity for business situations, more energy equals more productivity and drive to accomplish things.
We could go on and on with even more reasons why having a bookkeeper in your business life is critical, but we’ll stop here. If you’re ready to take the leap and get your time back, contact us below! We would love to chat about how we can help.