A professional bookkeeper actually saves you money through less human error and the bills that get paid on time.
Peter Daisyme, co-founder of Hostt, wrote an outstanding article outlining 10 reasons you need a bookkeeper. Here’s a quick summary:
1. Keep your focus on core business needs.
The greatest value that an accountant can bring to an entrepreneur is the freedom to focus on the vision that drives the company forward. Getting bogged down in forms and numbers can detract from growth. A startup needs the care and attention of its founder, and a bookkeeper can reduce the white noise immensely.
2. Stay out of what you don’t really know or understand.
Not all founders have a solid background in finance, accounting, or tax. Professional bookkeepers have spent years learning how to manage books and keep finances in order.
3. Calibrate a work-life balance.
The line between work and home is a blurry one in startups and small business. As the company grows, that line becomes increasingly important. Bookkeepers can take a load off of your shoulders, allowing you to work hard and play hard.
4. Get a different perspective on the business.
It always helps to have a second set of eyes on your company. Good accountants are compulsive truth-seekers, and they can give you a less-biased perspective on the state of your company. Numbers don’t lie.
5. Escape the tedious aspects of business.
Ever heard that accountants are boring? While I would argue against that 7 days a week, there is a reason for the stereotype. The work that accountants do is dry and tedious. Entrepreneurs enjoy their business. Bookkeepers enjoy their own business—the numbers.
6. Make sure everything is paid on time.
Between traveling, financing, marketing, sales, and internal progress, founders wear a lot of hats. It’s not hard for something to slip through the cracks. Bills are the last thing you want to be late on. You don’t want your credit impacted by a missed payment or a forgotten invoice. Put a bookkeeper in charge. It’ll give you confidence that everything has been handled on time.
7. Ensure correct tax filings.
You don’t like being audited. Get an accountant that can do taxes.
8. Maintain cash flow.
No matter what receivables look like, running out of cash can kill a small company. A good bookkeeper stays on top of cash flow and sends reminders to make sure it remains optimal. This is critical when you seek additional funding.
9. Resolve conflicts of interest with any business partners.
Although high-level conflicts may necessitate a lawyer, bookkeepers act as gatekeepers to company funds. Don’t be burned by a rampaging partner making an unexpected withdrawal.
10. Reduce the cost of financial obligations.
You might think that doing it yourself could save you money. That’s bad economics. Bookkeepers reduce the risk for human error in your books, increase the knowledge going into your accounting, and confirm that your obligations are met on time. Plus, your time is money that you could put toward growing faster and expanding further.