I am going to answer the common question, “Why do I need a bookkeeper for my small business?,” with several questions that may be helpful:
- Do you know exactly how much the products and services that you offer are costing you?
- Do you know how much profit you made last month, last quarter, or last year?
- Do you know which of your products or services are making the most profit for you?
- Is your bank or credit card statement reconciled? If not, do you know if your current balance is correct?
- If you were audited today, would you have organized records at your disposal to present to a CPA or auditor?
- Do you wait until the end of the year to gather all of your paperwork (receipts, etc.) for processing with your accountant or CPA? Does this lead to stress for you?
- Do you have an assistant that can help you save money in particular areas, or tell you where you are losing dollars and cents, or (better yet) where your financial strength resides?
- Do you have an assistant that can forecast your income flow, your accounts payables, or your receivables?
Many small business owners struggle in these areas, and most are embarrassed to admit that they need help.
A bookkeeper’s job is to accurately manage monetary transactions. She or he ensures that your financial records are just a fingertip away, at your disposal, ready to report (to you, and to your accountant — you no longer have to do that yourself. Yay!), and they provide a level of expertise (consulting) if you should desire.
Remember the week when you gritted your teeth, and drank coffee through the night, while gathering and preparing your paperwork to present to the CPA? A week (7 days) 8 -10 hours a day = 56 to 70 hours. Top that with a headache and nausea. Why oh why did I do this to myself AGAIN? Guess what? The truth is, you may ONLY need to hire a bookkeeper for 5 hours a month, or less, and she/he may save you hours of stress and money because your reports will already be prepared for the next step.
Why do you need a bookkeeper today? Your answer may be as simple as, “I no longer want that box or bag of disorganized paperwork hanging over my head.” So, you don’t want to dive into all of that yourself…that is where a system (help) gets you off of the hook!