The Benefits Of Bookkeeping

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When to Hire a Bookkeeper for Your Business

When it comes to entrepreneurs, a valuable trait is their ability to wear many hats, fulfilling a variety of roles in a DIY fashion. However, in some circumstances, taking on behind-the-scenes tasks, such as bookkeeping, may have adverse effects.

Whether you are a sole proprietor, small business owner or you are just establishing your entrepreneurial venture, it is important to determine the cost-benefits associated with doing your own bookkeeping.

This guide will outline when hiring a bookkeeper or bookkeeping service may be beneficial for your business and common questions associated with hiring this outside help.

Key Considerations

If you are not acquainted with bookkeeping practices, …show more content…

This time is spent completing bookkeeping tasks which include the recording of financial transactions, posting of debits and credits, production of invoices, maintenance and balance of subsidiaries, general ledgers, and historical accounts and completion of payroll.

Consequently, doing this work yourself may shift your focus away from more important business activities such as growing your customer base, improving your product or service and managing your business. While bookkeeping is a critical business activity, doing it yourself could be distracting you from other areas of operation which generate revenue for the company.

You’re Handling a High Volume of Transactions

It is always best to record, categorize and reconcile transactions soon after they occur, while you are still able to remember essential details. However, depending on the frequency and complexity of your business transactions, among other factors, bookkeeping can quickly become a bear. If you find yourself handling lots of expenses, multiple revenue streams or you are consistently tracking reimbursements to clients or employees, you may want to consider hiring someone to streamline the bookkeeping

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