17 Jul 4 Reasons You Should Be Using a Professional Bookkeeper
If you’re experienced with Excel or QuickBooks, you can probably handle the simple bookkeeping tasks for your small business, right? While that’s a thought that many small-business owners have, there’s a lot more that goes into bookkeeping than most people think. And, even if you don’t create any outright errors in your books, there are many other reasons that a professional bookkeeper in Provo is better suited to maintain your business’s books than you are.
Every choice has an opportunity cost. And while opportunity costs are not something that most people measure in their day-to-day lives, they can be vital towards running a successful business—especially when deciding how you are going to spend your time to better build your company.
When considering whether or not to hire a professional bookkeeper, too many business owners look only at the price tag associated with the service. But the opportunity cost of doing the books yourself can be much higher than the actual cost of hiring a bookkeeper. How many hours a month will you have to spend on your company’s bookkeeping? What other tasks might you be able to complete in that amount of time?
While you’re sitting at your computer, preparing balance sheets and reconciling accounts, you could be meeting with prospective clients, generating new leads, and completing other tasks that can help you to actually grow your business, rather than simply maintaining it.
Business owners tend to be good with numbers and money. It’s a necessary trait to build a company from the ground up. But as the owner of the business, numerous factors demand your attention, and that divided attention is going to lead to more mistakes.
A third-party bookkeeper has one job, and that allows them to focus solely on ensuring the highest level of accuracy. Plus, as an experienced professional, they are better suited to enter and classify your transactions, and to catch little inconsistencies that can add up over time. For our professional bookkeepers, there’s no guesswork involved—just absolute reliability and accuracy.
Conflicts of Interest
There are legal benefits to hiring an outside accountant as well. When a partner within a business is handling the books, and an error or inconsistency arises, there will always be careful scrutiny regarding whether it was simply a mistake, or if someone is cooking the books. These conflicts of interest can arise on many levels.
The IRS may charge you with fines if your reported income is inaccurate due to inaccurate books. You can face legal action from investors, partners, and clients alike. Even if actual legal ramifications never arise, inaccurate books can lead to a loss of trust between business partners, which can destroy a company.
But when an outside party is maintaining the company’s books, the potential for a conflict of interest is entirely removed. This protects your company, as well as any partners in the business.
Allocation of Resources
While large companies may require a full-time bookkeeper, most small businesses simply don’t have the need to hire a full-time employee for the job. This is one of the main reasons that they decide to take the DIY approach. But a third-party accountant can provide the exact services you need without the cost associated with an on-site employee.
At The Accounting Guys, we offer multiple levels of service to give you the right amount of support for your bookkeeping needs. Whether you just need us to review your books and offer some advice each month, or you want us to fully handle all of your accounts payable, tax planning, and other bookkeeping needs, we can give you the exact services to fit your company. This way, you’re not allocating extra funding and resources towards an employee who is only working half the time that they’re in the office.
No matter how good you are with spreadsheets, or how meticulous you think yourself to be, a professional bookkeeper in Provo is still the better option for your business. You’ll be making a budget-friendly choice that protects your company, as well as allowing you to focus on other efforts to help your business grow.