Bookkeepers and accountants are similar but they have different duties, even though the terms are often used interchangeably. Qualifications and education aside, just how much the two professions handle the scope and complexity of a business’ finances is the main division between them. If you are unsure if you require the services of an accountant or a bookkeeper, refer to Liu & Associates’ related articles to find out more. Once you have identified your business and financial needs, refer to the information below to learn how your business can benefit from a bookkeeper.
BOOKKEEPING COSTS
Only you can decide what your time is worth– that is why many struggle with the decision whether or not to hire a bookkeeper. Usually this indecision happens when a business reaches a level of revenue too complex for current employees to track, but also not varied enough to warrant an accountant. The following are some of the costs you can expect to incur when hiring a bookkeeper:
- Accounting or bookkeeping software subscription;
- Hourly or monthly fees (outsourced);
- Benefits and annual salary (in-house);
- Work-hours for recruitment, training and regular meetings.
BOOKKEEPING BENEFITS
No business owner succeeded by taking on unnecessary costs, but if you need bookkeeping services: it could end up saving money! Hiring a professional almost always means you believe that cash flow, investment strategy or other financial realities could be performing better. The next list outlines the most common benefits of bookkeepers:
- Time and effort saved for other work;
- Improved invoicing, collecting and record-keeping;
- Lower likelihood of avoidable financial errors;
- Choosing between outsourced or in-house adds flexibility.
Also known as doing a “benefit-cost analysis,” only someone who is very familiar with you or your business’ needs can know for sure if a bookkeeper is the right choice. If you are unsure, take time to review your finances or have it done by a reputable professional. Once you know the lay of the land, financially-speaking, you can move forward confidently when choosing whether or not to hire a bookkeeper. Questions? Concerns? Contact us here at Liu & Associates today for a wide range of financial services.