Should a business hire a bookkeeper?

We know that running a small business is no small feat. From managing day-to-day operations to strategic planning, there’s an endless list of tasks that demand your attention. Amidst these challenges, keeping track of financial transactions and maintaining accurate books often fall by the wayside. Even though they are, debatably one of the most important parts of running a business. That’s where a bookkeeper comes in. If you hire a bookkeeper to work full time for you, it can truly be a game changer. But isn’t cheap.

There are a variety of options available to you when it comes time to look for a bookkeeper. From freelance, to high quality outsourced bookkeeping services like CPL accounts. We always recommend looking into the options available to your business, and what you’re able to afford. For small to medium businesses, who don’t require daily bookkeeping work, we recommend looking at outsourcing your bookkeeping rather than hiring an internal bookkeeper.  And we’ll delve into all the benefits of outsourcing your bookkeeping in this blog. 

Understanding the Role of a Bookkeeper

A bookkeeper is a professional who records and organizes a company’s financial transactions. Meticulously recording all income and expenses, ensure bills are paid on time, invoices are sent promptly, and financial records are accurate and up-to-date. A bookkeeper can also assist with payroll, bank reconciliation, and preparing financial statements.

An outsourced bookkeeper takes care of these tasks as and when you need them. At CPL Accounts we offer a variety of different services depending on the level of bookkeeping your business requires and what you can afford.

Reasons Why a Small Business Should have a Bookkeeper

1. Time and Efficiency: As a small business owner, your time is best spent on core business activities, not on managing books. When you hire a bookkeeper, they can take over the time-consuming task of record-keeping, freeing up your time to focus on growing your business. When it comes to outsourcing, bookkeepers are there when you need them, giving you a quick turnaround for tasks that require their services.
2. Financial Accuracy: Mistakes in bookkeeping can lead to financial implications, including inaccurate tax filings and over or under-statement of income. A professional bookkeeper, whether hired internally or outsourced, with their expertise and attention to detail, can significantly reduce the risk of errors.
3. Cash Flow Management: Effective cash flow management is crucial for the survival and growth of any business. A bookkeeper can help monitor cash flow, enabling you to identify trends, plan for the future, and make informed business decisions.
4. Regulatory Compliance: Businesses are required to adhere to various financial regulations. These may include tax laws, employment regulations, and reporting requirements. When you hire or outsource a bookkeeper,  they can help ensure your business is compliant, reducing the risk of financial penalties or legal issues.
5. Financial Analysis and Insights: A bookkeeper doesn’t just record transactions; they can also provide valuable financial insights. Regular financial reports can help you understand your business’s financial health, identify opportunities for growth, and spot potential issues before they become serious problems.
6. Peace of Mind: Knowing your financial records are in the hands of a professional can give you peace of mind. You can rest assured that bills are being paid, receivables are being tracked, and all transactions are being accurately recorded.

Making the Decision

While hiring a bookkeeper is an additional expense, the benefits they bring in terms of time savings, financial accuracy, and business insights often outweigh the cost. Using an outsourced service like CPL Accounts rather than hiring a full time bookkeeper as part of your team, not only gives you access to experienced professionals, but also allows you to save on monthly costs. Good bookkeeping is not just about compliance; it’s also a critical tool for business success. By providing a clear picture of your business’s financial health, a bookkeeper can help set your business on a path of sustainable growth and profitability.