Bookkeeping: Should You Outsource It?

As a small business owner, it’s likely that you started your company because you’re passionate about whatever it is that you sell or do. Maybe you love baking bread so you started a bakery or you enjoy fixing bicycles so you opened a bike repair shop. While you might even find running this part of your business fun, it’s possible you don’t know as much about or necessarily love the bookkeeping tasks that come along with operating your business. (Don’t worry - you aren’t alone!)

Yet, this is important. From recording transactions to generating financial statements to invoicing, these tasks need to be handled quickly and correctly to ensure the smooth operation of your business. So, what do you do? Should you consider outsourcing the bookkeeping or do it yourself?

What Are Some Reasons to Outsource Your Bookkeeping?

First, if you’ve never taken an accounting or bookkeeping course before, this is a clear indication that you shouldn’t be handling these functions! Second, if you aren’t trained on how to use a bookkeeping software, then it is best to hire someone who is trained. Remember: junk in, junk out. If you don’t know how to use the software, it’s likely you won’t properly follow generally accepted accounting principles (GAAP) or the guidelines that the IRS has set, and your results will be incorrect and/or misleading.
Do The Benefits of Outsourcing Outweigh Its Cost?

To answer this question simply, yes. Your financial information must be organized, correct, and timely so it is usable and useful when needed (to secure a loan, qualify for a grant, or to finance equipment, for instance). Trust us, having accurate books will provide your business with more opportunities, which is priceless. And this benefit is more valuable than whatever the cost ends up being for your bookkeeper’s services.

How Do I Find a Bookkeeper Who Is Reliable, Honest & Competent?

Start with referrals. Talk to other business owners, find out who they use, and ask if their bookkeeper is accessible, responsive, and dependable. When referrals aren’t an option, check with the American Institute of Professional Bookkeepers, National Bookkeepers Association, or National Association of Certified Public Bookkeepers. Many times, these associations and other similar ones can share lists of professional bookkeepers with you that can assist in your search. Software providers (like Intuit/QuickBooks, Accounting Suite, FreshBooks, Xero, and NetSuite, for example) often also provide directories of bookkeepers who are certified in their specific software.

How Much Should I Spend on a Bookkeeper?

The truth is that the cost of a bookkeeper can vary widely, depending on where you’re located and other variables. Some factors that will impact how much you spend include:

• Whether you hire them as an employee or a contractor.
• Whether they work part-time or full-time for you.
• Whether they are full-service or only handle a portion of your bookkeeping.
• Whether they have any special certifications.
• What their level of expertise is and how experienced they are.

Get several quotes and interview multiple candidates before making your decision so you can compare and pick the bookkeeper who will be the best fit for your business.

A Final Word From Tuesday Brooks Founder of AJOY While it might be tempting to handle your company’s bookkeeping by yourself, if you’re not trained in this area, it’s generally best to pay a professional who will keep your books organized and accurate. (See this post for more info about how to keep your books looking pretty - and why you should. How to Keep Your Books Lookin’ Pretty Use the tips above to find the right bookkeeper for your business. Believe me, this decision will pay off handsomely in the future as doors of opportunities open to you and you’re able to walk through them confidently and prepared!