When you run a business, you’ll probably be handling or looking after several tasks. Especially in the initial days, you may find yourself moving between customer service, paying bills, and looking for new opportunities to grow.
It’s not surprising if you end up forgetting about business bookkeeping. It’s definitely not the most entertaining task and yes, it could be monotonous. But, it’s important.
When transactions are low, it’s easy to stay updated. All you have to do is record a few transactions, review things and you’re basically done. But as business picks up, things can get messy. Suddenly, you're spending your evenings sorting receipts instead of planning your next move.
That's when finding a bookkeeper for business starts to make sense.
The difficult question is, should you hire someone, work with a freelancer, or let an outside company handle the job? The option you choose depends on your requirements. This blog will go through these options.
Why Does Your Business Need a Bookkeeper?
Bookkeeping is more than just recording transactions. It helps you understand where your money goes. It also helps you know your business’ financial standing.
You might be making plenty of sales but still struggle to cover your bills. It could be that customers are paying late. It could also be that your expenses are secretly growing unnoticed.
With accurate business bookkeeping, you can clean up your messy books. This can help you find hidden problems early. It can also save you time during tax season.
You don't have to hire someone right away. You can continue doing things on your own. If you find yourself stressed out, it’s probably a sign you need bookkeeping help.
1. Hiring an In-House Bookkeeper
An in-house bookkeeper is an employee of your business. They could either be full-time or part-time. They're part of your team and get familiar with your daily operations.
The biggest advantage of an in-house bookkeeper is easy communication. Have a question about an invoice? Need to check a payment? You can speak to them directly.
When you hire staff, you need to pay more than just their salary. You may need to buy new software, give them training and provide other benefits. If they go on holidays, you won’t have backup support.
Another thing. If you only need a few hours of support, a full-time bookkeeper doesn’t make much sense.
2. Working With a Freelance Bookkeeper
A freelance bookkeeper works independently. They could have multiple clients. They’re paid for specific tasks. You could ask them to only do recording of transactions, or to prepare your monthly reports. They may also be hired just for tax season.
Freelancers can be the most practical small business bookkeeper. For a small business with a few regular clients, hiring someone full-time may not make financial sense. Bookkeeping for small business could be better handled by a freelancer while you focus on finding new customers.
You can also adjust the amount of support you need as your business grows. There is one major disadvantage. Freelancers don’t only work for you, so their schedules may be tight. Don’t always expect them to be available when you need them.
Before hiring someone, find out about them. Ask their experience. When they are available. What software skills they have ?
Also ask what would happen when they are unavailable, say for vacations ?
Freelancers are often a good fit for startups and independent professionals. They may be useful for small businesses that can’t afford a full-time bookkeeper. Before handing off your bookkeeping, you may need to prepare or organize your books beforehand.
3. Using Outsourced Bookkeeping Services
Outsourcing means to hand over your business bookkeeping to an external company. You could be working with an individual bookkeeper or the whole team. That depends on the providers policy.
Professional bookkeeping services make most sense when your business is growing fast, and your current systems get overburdened.
Suddenly, your business starts to pickup. More orders. More payments. More bills. More expense and revenue tracking. You may just end up with very messy books in no time. Staying organized can become a difficult task in itself.
With outsourced business bookkeeping services, you can hand over these tasks to people who already have a process for handling them.
Some providers also offer backup support, so your bookkeeping doesn't depend entirely on one person's availability. You may be able to increase your level of support as your business expands, too.
Of course, outsourcing doesn’t mean that you no longer have any responsibilities. You'll still need to share documents, answer questions, and review reports.
Before signing up, ask how your financial information is protected. Also, what exactly is included in the fee. Payroll and tax preparation or other services, for example, may be an additional cost.
Outsourcing can work well for growing businesses that need reliable support but aren't ready to build an internal finance team yet.
In-House vs. Outsourced Bookkeeping: Which Is Better?
There are several pros and cons for both. The decision depends on what your business actually needs.
With an in-house bookkeeper, you have the benefit of face to face access. On the other hand, a freelancer gives you flexibility.
In contrast, outsourced bookkeeping services gives you access to a full team.
The cost of all three options vary. But price isn’t everything. You need to look at your requirements. When are your queries answered ? Which option gives you the most time for other activities ? Consider all benefits first and then make a decision.
Which Option Fits Your Business?
If you're just starting your business, you can probably do things by yourself. Your transaction volume may be low, and a freelancer could provide all the help you need without adding a fixed salary to your expenses.
As sales increase, your bookkeeping workload usually grows, too. You might have more invoices to send out. More employees. More payments to make. At this stage, regular support can help prevent time being wasted in unimportant tasks.
If your business is growing fast, an in-house bookkeeper or an outsourced bookkeeping services may be worth considering.
Some established businesses use both. An employee handles everyday tasks, while an outside company helps with extra work.
There's no need to copy another company's setup. Choosing when to outsource depends on what fits your own workload and budget.
What Should You Look for in a Bookkeeper?
Finding someone reliable isn’t easy. You’ll have to put some effort. Consider the following points:
- Ask about their experience. Have they worked with businesses like yours? Are they comfortable using your accounting software?
- What do you expect from them ? Ask when your records will be updated. How often will you receive business financial reports? Who to contact if something looks wrong?
- Pricing of bookkeepers also matters. Find out what services are included and the cost of additional services.
- One of the most important factors is communication. You shouldn't have to chase someone every month to find out whether your accounts are finished.
Good professional bookkeeping services should make your financial life easier, not create more work for you.
AccountiPro: A Professional Bookkeeping Service
Choosing a bookkeeper for business doesn't need to be complicated.
An in-house employee may suit a business with daily bookkeeping needs. A freelancer can be a sensible choice when you need occasional support.
Outsourcing may work better when your business is growing and you want a more flexible setup.
With AccountiPro, neither do you need to worry about hiring an in-house employee nor a freelancer. With our experienced accounting team, we can provide regular support, clear pricing, and in-depth communication. Our years of expertise covers several industries, giving us knowledge about what processes can suit your business needs best. If you no longer want to worry about day-to-day bookkeeping needs, contact us today.
