If you are a starting entrepreneur, you might have asked yourself whether hiring a bookkeeper is truly beneficial to your business. To save on operation costs, you have probably decided to do it on your own. There’s the Bookkeeping for Dummies by Lita Epstein to get you started after all.
But as a precaution to those who have not tested the murky waters of bookkeeping yet, it is a challenge that baffled many business owners who attempted to do it themselves. It is smart to know whether your business needs a professional bookkeeper to keep your books right.
Are you ready to hire a bookkeeper in case your business really needs one? Here are the three types of bookkeeping services to determine the right fit for your business bookkeeping requirements.
Bookkeeping for Dummies: The DIY Bookkeeping Approach
It might be a good idea to handle bookkeeping on your own when you are still starting. With simple or fewer transactions to manage, it seems that you would have everything in place while keeping costs down to a minimum. There are basic accounting software in the market that can significantly help your small business. You can even do your bookkeeping stuff with just a simple Excel spreadsheet.
But despite the fact that it is an enticing option for budget-conscious entrepreneurs, this is not for everybody to pursue. If you are purely engaged in your business, you may not have the necessary skills or knowledge to be a good bookkeeper. Worse, you don’t have a single clue on how to do it. This could result to bookkeeping mistakes that would render more costs on your side. If this happens, it is maybe an indication that you need a professional bookkeeper (or a team) to take the mundane, time-consuming bookkeeping hurdles off your plate.
Bookkeeping for Dummies: Outsourcing/ Contractual Bookkeeping Services
Hiring a regular employee could be a good option when you want to finally let go of your bookkeeping tasks. But as a small business with limited budget, you may not be ready to employ one. A better alternative for this is to outsource your bookkeeping duties to virtual or remote bookkeepers.
Modern virtual bookkeepers work online using cloud accounting software to make financial data sharing and collaboration easy. You could outsource such services to a local accounting firm or to a freelance bookkeeper. Although there are many options to choose from when it comes to outsourcing, a local firm could be the best choice. Local firms have the essential equipment and technology to handle your books right. Your valuable financial data are also more secured.
Bookkeeping for Dummies: Hiring an In-House Bookkeeper
If your business is stable enough, hiring an in-house bookkeeper could be a good choice to your changing needs. You can choose to hire either a part-time or full-time bookkeeper into your staff. Or you can hire someone who can handle both administrative work and bookkeeping tasks together as a full-time job.
Free yourself up from bookkeeping headaches by handing them over to a qualified bookkeeper. You will be able to allocate your time and energy into more meaningful activities where your inputs are greatly needed. Investing in a bookkeeping solution will make for better and more accurate results. Always keep in mind that even though you are not entirely involved with your business bookkeeping, you need to remain well-informed with how it is doing.