When should I start outsourcing my bookkeeping?

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Ask Andi With Andi Smiles

Business


Did you know that I started my career as a bookkeeper? I’ve helped many businesses with their finances and today, I’m going to share that knowledge with you! I’m going to dive into what the role of a bookkeeper is, how to know if it’s time to outsource your bookkeeping, and how to make sure your bookkeeper is getting the job done. It can be anxiety-inducing to let someone else take care of your finances, but with the right information, you can feel confident you’re making the right choice Let’s find out if hiring a bookkeeping pro is right for your business! What We’re Talking About What Does A Bookkeeper Do? Knowing When It’s Time To Outsource Bookkeeping How To Review Your Bookkeepers Work What Does A Bookkeeper Do?   It’s important to know the role of a bookkeeper and how it differs from an accountant and a tax preparer. Bookkeepers take care of the data entry portion of accounting. Some bookkeepers will also work with accounts payable, accounts receivable, invoices, sales tax, and run financial statements. Ideally, you should try to do your own bookkeeping for at least the first year of your business. By doing your own bookkeeping you will get comfortable with your business finances, create more transparency, and have a good foundation of bookkeeping principles. Knowing When It’s Time To Outsource Bookkeeping As your business grows and your time becomes more valuable or you are spread more thinly, it may be time to outsource bookkeeping. With growth, finances can become more complicated as well. For example, dealing with sales tax might be challenging, and a bookkeeper who specializes in that area could help streamline your finances. As always, we should never overlook the emotional aspect of money. If doing the bookkeeping, or even thinking about bookkeeping stresses you out, it’s time to hire a pro. How To Review Your Bookkeepers Work If you were able to DIY your bookkeeping in the first year, you already have a great understanding of what your bookkeeper should be doing. But, even if you are hands off with your bookkeeping, it is critical to pay attention. The easiest way to stay up to date with your bookkeeper is by having the log-in information for your financial software and to check-in at a regular frequency. Account reconciliation and having the bookkeeper send you reports also ensures the correct work has been done in a timely manner.  Is your bookkeeping up to date? LINKS MENTIONED Biz Finance Survival Kit  http://andismiles.com/survivialkit Essential Bookkeeping Tasks for Your Business (Training)  https://andismiles.com/essentialtasks/ 3 Ways Doing Your Own Bookkeeping Will Revitalize Your Relationship With Money  https://andismiles.com/2016/08/29/3-ways-books-will-revitalize-relationship-money/