A lot of you may be wondering, “If I already have a CPA or accountant, why would I need a bookkeeper?” While accountants are very talented at what they do, most don’t have the time to focus on the details that is bookkeeping and instead prefer to refer their clients to a bookkeeper. Bookkeepers are able to keep up with the books, giving their clients the chance to know exactly what is going on in their business at any time. Here are some of the other benefits to having a bookkeeper.
Keeping the books organized is very important if you want to know what is going on with your business and help you to plan for tomorrow. It will help tax time go a lot smoother and easier since you will be coming to the accountant with your books prepared. You will be able to get more deductions by showing all the expenses that your business had. Organized books are especially important when it comes to jobs costing and forecasting, which we’ll talk about soon.
A bookkeeper will have been trained on the accounting software, such as QuickBooks Online or Xero Accounting, that you use, meaning they understand the nuances and how the software works. Having this expertise on your team will allow you to use every feature the accounting software offers to the max. The bookkeeper might even know which level of QuickBooks Online would be best for you to start with or if you need to upgrade.
For niches such as tradesmen and contractors, a specialized bookkeeper is very useful as they will know your industry’s patterns, putting them in the perfect position to give you advice on how to run your business more efficiently. A niched bookkeeper is less likely to make mistakes in your books, since they work with this format on a daily basis.
An additional way having a bookkeeper can help you if you’re a tradesman is when you are able to do job costing. Being able to see the cost vs. profit for each project can help you to know what types of jobs are more worth the effort, but the process is very time consuming. By having a bookkeeper help you with this, you will be able to have this valuable information without having to put in a lot of effort.
Being that cashflow is so important for a business to thrive and grow, this can be difficult when your business is project-based. Having a bookkeeper help you with a business budget can mean you’re able to make it through the slower months without going bankrupt.
Finally, having a bookkeeper as a tradesman gives you the advantage of forecasting. Forecasting is done with software and can show you the outcomes to your income or expenses with different scenarios. Using this can help you to decide whether it may be worth it to pay off expenses and put this money towards advertising.
As you can see, there are many ways outsourcing your bookkeeping to a professional gives you both your time back as well as giving you multitude of ways to grow your business with data. If you have been wanting to find a bookkeeper but aren’t sure where to begin looking, check out this article for more information.
Do you see the value in having a professional take over your books? Let me know in the comments.
