Why should I hire a bookkeeper anyway? – Reason 1 | Bookkeepers can be someone who’s “got your back.”
June 4, 2009
By Optimum Accounting
think that the best bookkeepers are the ones who not only just plug in the numbers and pay the bills, but they pay attention as well. Imaging having a second set of eyes looking over the financial part of your business. This is someone who has your best interest in mind making suggestions and pointing out trends.
I do this all the time for my clients and they are so appreciative. Because I’ve worked with so many businesses, I notice things that most entrepreneurs would not. By lending my expertise to my clients, I help them to become more profitable. Be sure to hire a bookkeeper who has your back.
Why should I hire a bookkeeper anyway? – Reason 2 | It’s much easier to work on your business
June 1, 2009
By Optimum Accounting
There you are, at 1:30am in front of your computer, swearing at QuickBooks – loudly. The next morning as you sip your third cup of coffee, looking at your “to do” list you realize you’ll be up late again to make that client deadline. Who has time for planning?
With the energy and time freed up by letting a bookkeeper do it, you can focus on strategic planning. Maybe you’ll have time to interview that virtual assistant, create a new product or service or (gasp) spend a little extra time with the kids? By working on, rather than in, your business, you can more quickly and effectively create a business that supports your desired lifestyle. And isn’t that why you do what you are doing in the first place?
Why should I hire a bookkeeper anyway? – Reason 3 | File your taxes (and get your refund) on time
May 29, 2009
By Optimum Accounting
If I had a dollar for every time a client brought me a shoebox full of records on April 10th my daughter’s college fund would be fully funded! Seriously though, it is very common for an entrepreneur to look up from their insanely busy business world and realize that there is precious little time to organize everything for their taxes.
And so they file an extension (or maybe two). Well that’s not the end of the world if you owe money on your taxes and have properly paid an estimate of what you owe. Letting the government collect interest on a hefty tax refund however might not feel so good. Having a bookkeeper keep your records accurate and current will allow you to file on time, avoid penalties and maybe even get a larger refund.
Why should I hire a bookkeeper anyway? – Reason 4 | You need to understand where the money is going in your business
May 26, 2009
By Optimum Accounting
Many businesses aren’t profitable simply because they don’t know where they are spending their money. What many business owners don’t realize is that an accurate picture of their business can also let them know which portions of their business are profitable and which are not.
This allows them the opportunity to make adjustments such as raising their prices or even discontinuing some of their products or services. This is a case of what you don’t know can hurt you – or your bottom line.
Why should I hire a bookkeeper anyway? – Reason 5 | QuickBooks only seems easy to set up correctly
May 23, 2009
By Optimum Accouting
Ah QuickBooks. Set up correctly and it is a wonderful tool. Done improperly and it can become an accounting nightmare. In a later post, I’ll provide you with some tips on how to do it yourself. For now please remember the quote from Tip #9 “If you don’t have time to do it right, where will you find the time to do it twice?
Setting up QuickBooks properly can be very time consuming. For some industries the pre-designed chart of accounts is better used as a guide. Your accounts need to reflect your business or you can run into a lot of problems. My best advice to you around QuickBooks – Hire a professional.
Why should I hire a bookkeeper anyway? – Reason 6 | Get paid for your services on time and increase your cash flow
May 20, 2009
By Optimum Accounting
Sometimes (or maybe often) a business experiences a cash crunch, not because they don’t have clients or aren’t working enough, but because they aren’t getting paid for what they do. If remembering to invoice clients is a usual part of how the business operates, cash flow will suffer needlessly.
There are two additional reasons having a bookkeeper can help in this arena that are more important.
1. Having an invoice generated by your “bookkeeping department” makes your business feel legitimate and some clients are more likely to pay on time if they believe it’s not “just you” doing the accounting.
2. If you hate “chasing down” late paying clients, an accountant can be an excellent resource for you. It keeps your relationship with the client about how you benefit them (unless they get unreasonably late) and you would no longer need to have those energy draining days when you’re on the phone or in front of your computer screen creating “you are late where is the money” messages.
Why should I hire a bookkeeper anyway? – Reason 7 | Paying bills on time saves on late fees
May 17, 2009
By Optimum Accounting
When I take on a new client, I occasionally find that they are paying late fees on their accounts payable. What is a shame is that it’s not usually because they didn’t have the money to pay, it’s because they didn’t have the time (or they forgot) to pay. Having a bookkeeper take care of this will ensure that never happens again and will save you money.
Here’s another tip. Don’t pay your bills early! There’s no reason to pay a bill early. Having that money available will increase your business’ flexibility. The most successful businesses are the ones who are best prepared for the unexpected. By paying bills on time (rather than early) you can be better prepared.
Why should I hire a bookkeeper anyway? – Reason 8 | Your accountant will appreciate it (and it might save you money too)
May 14, 2009
By Optimum Accounting
Accountants don’t like shoeboxes full of records any more than you do. Nor do they enjoy trying to unravel the financial records of someone who “thinks they know how” to be a bookkeeper. As a result, DIY’ers end up paying an awful lot of money to the accountant who has to figure it out.
Sometimes they’ll hire a bookkeeper to sort it all out and charge you an accountant’s hourly rate! So now the business owner spent their personal time trying to get it done and has to additionally pay to get it redone. Ouch! It reminds me of the old saying, “If you haven’t got time to do it right, where will you find the time to do it twice?” Substitute the word “time” for the word “money.”
Why should I hire a bookkeeper anyway? – Reason 9 | You should be focused on what you do best
May 11, 2009
By Optimum Accounting
You got into business to do what you do best, and unless you are a bookkeeper, chances are it’s not setting up QuickBooks and balancing your accounts! When you outsource those things that are not your expertise two things happen:
You have more time in your day and you have more energy to do your work.
Of course bookkeeping is not the only thing you should be outsourcing. (A CEO wouldn’t empty his own trash would he/she?) However it’s my feeling that it is the most important.
Why should I hire a bookkeeper anyway? – Reason 10 | You need to understand your company’s financial situation
May 11, 2009
By Optimum Accounting
Without knowing where you stand financially, opportunities can be missed and bad things can happen. I’ll give you examples of each.
Missed opportunity: Imagine you had no idea that there was $50,000 in surplus in one of your accounts (don’t laugh it has happened). You have an opportunity to invest in a business venture that will vastly expand how you can help you clientele. You spend hours and hours (or you have a bookkeeper spend hours and hours) trying to figure out where you can get $50,000. By the time you discover it, the opportunity is snatched up by a competitor.
Bad thing: You are unsure of the exact balance in your business account. Debits and credits happen automatically all of the time making it complicated to figure out on any given day how much of a cushion you have. A client does a “charge back” for a large amount on the same day your payroll clears the account. There is no money to cover the charge back and your merchant account gets shut down. Had a bookkeeper been on top of the situation, you might have been able to transfer funds to cover the situation. – Ouch.
