Managing a Business is indeed a tough row to hoe. From planning to execution, there are a lot of points to hit on. One of the most vital responsibilities of doing a business is Finance and accounting. It is the only reliable measure to track the progress of your Business. Bookkeeping will help you make your business budget and prepare you for business tax returns in advance. All in all, Bookkeeping will help you keep your business organized.
So, Bookkeeping is crucial, or we might say very crucial. Now comes the question: Do you need to hire a bookkeeper to manage your books?
Go through this article if you are confused about, Should I hire and how to hire a bookkeeper?
What does a Bookkeeper do?
Table of Contents
We suppose you must have a basic idea about what bookkeepers are. Did you know; Bookkeepers helping business owners since 2600 BC?
Ergo, it is an ancient profession.
Bookkeepers prepare accounts and document financial transactions of the Business timely. They create four types of statements:
- Central cash flow statements to register cash and other forms of money entering and leaving the Business.
- An Income statement will give the Business’s expenses and income at a particular time.
- A statement that shows each variation in reserves, capital, and earning of a share is called the Changes in equity statement.
- An elementary balance sheet describes the Business’s financial situation at one point in that particular time.
Why do you need a Bookkeeper?
Bookkeeping is necessary, and to be honest, none has time to do it independently. It is best to hire a bookkeeper. A bookkeeper will;
- Tracks purchases, sales, receipts, and payments of the Business
- Manage receivables and payable finances
- Manage Payrolls
- Create an annual budget for your Business
- Collect, organize and record the finances from time to time
- Inform you about any issues and suggest you the changes
- Create a record of all financial details of the Business so that the Accountant can use it for further process
It is preferred for Businesses to hire a bookkeeper as, A BookKeeper;
- It helps you in giving a better picture of your Business
- Understand revenue, cost, profit, and loss of your Business.
- Provide you with the access to better monitor your business design and all the internal business processes
- Give you the serenity as you will be aware of tax filings in advance
- It saves your time to invest it in other tasks
- Prepares the detailed documentation ready to file anytime to the IRS
How to Hire a Bookkeeper?
While looking for a Bookkeeper, there is a wide range of choices. You can hire a;
- Freelancer
- Bookkeeping enterprise
- Remote Bookkeeping
We will describe each for you in detail to help you find a bookkeeper, the one that fits best for you.
Freelancer
There are several freelancing services on the freelancing websites. You can also hire a Freelancer bookkeeper for a small business from one of these websites.
Things you should know before choosing freelance Bookkeeping;
- A Freelancer bookkeeper can visit your desired location or manage your business books remotely.
- You and the Bookkeeper should use the same bookkeeping software for easy tracking.
- Freelancer bookkeepers charge per hour and act as your time bookkeeper. Otherwise, they can charge a flat rate for your entire bookkeeping project.
- It would help to hire a bookkeeper who has worked in the same niche as your Business.
Cons of hiring Freelance bookkeepers
- Due to high demand, finding Freelance bookkeepers in season-closing is hard.
- Most Freelancer bookkeepers are not available all the time. They can take a leave or delay projects when they want.
- The chances of hiring an unskilled bookkeeper are high. Therefore, it is best to ask about their past work before hiring them.
Bookkeeping Firm
Some firms provide bookkeeping services by hiring Bookkeepers themself and acting as the bridge between the Business and the Bookkeeper.
Things you should know before hiring Bookkeeping firms;
- Just like Freelancer bookkeepers, the bookkeeping firm charges per hour or can charge a flat rate for your entire bookkeeping project.
- Most Bookkeeping Firms provide remote Bookkeeping services.
- Some Bookkeeping Firms also provide the option to pick up and deliver your Bookkeeping related documents.
- Along with the Bookkeeping, these Bookkeeping Firms also give accounting services.
Cons of hiring Bookkeeping Firms
- Hiring a Bookkeeping Firm is way too costly as their charges are much more than a typical bookkeeper might charge.
- You might have to pay more if you want bookkeeping services from specialized and experienced Bookkeepers.
Remote Bookkeeping
Many websites like LottaLegal provide Remote Bookkeeping services on the Internet. These services got significant hype in the COVID-19 when no one could look out for bookkeepers outdoors.
They are similar to BookKeeping firms. Like them, they hire professional bookkeepers and connect Businesses with professional bookkeepers. But, here with Remote bookkeeping services, the crisp lies in their prices.
In short, they provide the following advantages:
- They Cut the struggle to find the bookkeepers all by themselves.
- Remote Bookkeeping services have specific criteria when hiring bookkeepers. Only if the BookKeepers clear those standards do these Bookkeepers get to work with the remote bookkeeping service providers and serve the customers.
- The Remote Bookkeeping services train their Bookkeepers to provide you with quality services.
- Unlike freelance bookkeepers, remote bookkeepers are wholly consistent with the work and won’t leave you hanging with your books in the middle.
- Remote bookkeeping businesses have special customer care teams that are more accountable and reliable.
- Due to professional bookkeepers’ availability, their reports are more accurate with minimum error.
- Due to the bulk workforce, these services are available even at the end of the financial year.
- Their customer service is better than the Bookkeeping firms and reaches out to you in case of any issues.
- The utmost advantage of choosing Remote Bookkeeping is their pricing. Charges are way too cheaper and affordable.
If you are looking for a Remote Online bookkeeper near me, you can choose LottaLegal. You need to follow these steps, and you will be able to manage your books easily with our services;
Step – 1
Virtual meet with our professional.
In a virtual meeting, you must give your basic business details to our Professional Bookkeeper, who will manage your books.
Step – 2
Books Management –
Our bookkeepers will access your financial transactions and work on your Business books timely. If required, the bookkeepers can contact you to get more details.
Step – 3
Weekly or Monthly financial reports –
At the end of each month, we will send the financial report of your Business. You can use these reports for taxation or accounting purposes.
Frequently Asked Questions
Can a bookkeeper save you money?
Yes, a bookkeeper can save your money. A professional bookkeeper can give you a clear picture of the revenue and expenses of your Business. After getting this data, you can check the loopholes in your Business and make changes accordingly. It will help you save your money in the long run.
Do BookKeepers need certifications?
No, Legally, a BookKeeper as such doesn’t require training or certifications to qualify as a professional Bookkeeper. Still, some Bookkeepers can have certifications from the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB.) These certifications can, of course, level up the Bookkeeper’s skills, but that doesn’t make non-certified BookKeepers any less.
What is the difference between an Accountant and a Bookkeeper?
A Bookkeeper collects and depicts data based on business transactions.
After this, the Accountant turns that data into useful information that provides insight into Business by forming accounting reports.
