#12: When Should I Start Outsourcing My Bookkeeping?

by | Mar 17, 2020

About This Episode

Did you know that I started my career as a bookkeeper? I’ve helped many businesses with their finances and today, I’m going to share that knowledge with you!

I’m going to dive into what the role of a bookkeeper is, how to know if it’s time to outsource your bookkeeping, and how to make sure your bookkeeper is getting the job done. It can be anxiety-inducing to let someone else take care of your finances, but with the right information, you can feel confident you’re making the right choice.

Let’s find out if hiring a bookkeeping pro is right for your business!

What We’re Talking About

  • What Does A Bookkeeper Do?
  • Knowing When It’s Time To Outsource Bookkeeping
  • How To Review Your Bookkeepers Work

What Does A Bookkeeper Do?

It’s important to know the role of a bookkeeper and how it differs from an accountant and a tax preparer.

Bookkeepers take care of the data entry portion of accounting. Some bookkeepers will also work with:

  • Accounts payable (what you owe other people)
  • Accounts receivable (what other people owe you)
  • Invoices
  • Sales tax
  • Financial statements

Ideally, you should try to do your own bookkeeping for at least the first year of your business. By doing your own bookkeeping you’ll get comfortable with your business finances, create more transparency with your money, and have a good foundation of bookkeeping principles.

Click here to subscribe

Knowing When It’s Time To Outsource Bookkeeping

As your business grows and your time becomes more valuable, it may be time to outsource bookkeeping. With growth, finances can become more complicated as well. For example, dealing with sales tax might be challenging, and a bookkeeper who specializes in that area could help streamline your finances.

And of course, we should never overlook the emotional aspect of money. If doing the bookkeeping, or even thinking about bookkeeping stresses you out, it’s time to hire a pro.

How To Review Your Bookkeepers Work

If you were able to DIY your bookkeeping in the first year, then you already have a great understanding of what your bookkeeper should be doing!

But, even if you are hands-off with your bookkeeping, it is critical to pay attention. The easiest way to stay up to date with your bookkeeper is by having the log-in information for your financial software and to check on their work regularly. Make sure your accounts are reconciled and ask your bookkeeper to send you monthly reports so you know they’re keeping up with your books.

Related Episodes

#30 How do you prepare for unexpected business costs?

#30 How do you prepare for unexpected business costs?

#30 How do you prepare for unexpected business costs? As a business owner you’re bound to have unexpected expenses come up at some point? It’s not if, it’s when.   These expenses could be big or small and being prepared to take any kind of financial hit is something...

read more
Pin
Share
Tweet
Buffer
Email