As business owners, we wear many hats. Some of these hats include operations manager, project manager, social media planner, and sales manager. As you know, they can be difficult to juggle at times. One of the most essential but heavy hats to wear is the bookkeeping hat. It would be best if you were consistent, accurate and very organized for this one.
Every company needs to manage its finances effectively, and we’ve seen it firsthand for years. Acting as the business owner AND bookkeeper can be a solution, but it’s often temporary. It isn’t sustainable in the long run if you are growing your business and becoming even busier.
For more information on bookkeeping, you can visit the Government of Canada website.
The Regular Tasks of a Bookkeeper
Here is a shortlist of some common tasks handled with bookkeeping:
– Keeping track of sales, purchases, payments and receipts on a day-to-day basis
– Maintaining an accurate record of all financial transactions
– Managing employee payroll
– Preparing for tax season
The amount of time spent on these tasks depends on how organized you’ve been. Most business owners don’t enjoy doing these things and would instead invest their time elsewhere.
You may be asking yourself, “When should I hire a bookkeeper?”
When Should you Hire a Bookkeeper?
1) You Don’t Have Enough Time
It’s easy to let tedious and time-consuming stuff pile up. This is especially true for tasks like bookkeeping that aren’t overly urgent. However, there does need to be some urgency with staying on top of things.
When you fall behind on bookkeeping, your company’s books stop reflecting your finances’ actual state. It’s suddenly difficult to understand cash flow and the financial health of your business.
Leaving all or most of your bookkeeping for tax season means you’ll be even more stressed than usual. Moreover, business owners typically find they have to spend more time getting organized when they do a full year at once. Trying to remember financial details from several months ago can be challenging and stressful.
As business owners, we need to be strategic with where our time goes and we can’t possibly wear all hats. Bookkeeping is one of the roles that should be hired for. This allows you to spend more time on revenue-generating activities like marketing, sales or product development.
2) You Don’t Enjoy it
As mentioned above, it’s easy to let the things you’re not interested in pile up. If you don’t enjoy bookkeeping, you likely won’t put your best foot forward. This leads to missed opportunities with tax write-offs.
Many business owners start a business because they’re passionate about the product or service they offer, but the focus should be on what we enjoy. Hiring a professional bookkeeper allows you the peace of mind to divert attention elsewhere in your business. In conclusion, you can reconnect with why you started it in the first place.
3) You’re not Educated about Bookkeeping
You can probably get by for awhile only knowing the basics of tracking revenue and expenses. Even with software like Quickbooks, this is a temporary solution. A growing business means more customers, with more paperwork to be done.
There are no education requirements to be a bookkeeper in Canada. Nonetheless, an educated bookkeeper with several years of experience can significantly impact your company’s bottom line. Colleges, universities and organizations like the Canadian Institute of Bookkeeping offer in-depth courses. These offer knowledge on topics like computer applications, government compliance, and best practices.
Educated bookkeepers with a proven track record are the ones you need to consider. If you doubt whether you’re managing your books properly – hire a professional to make sure it’s done right.
Independent bookkeeping companies are typically flexible and can work part-time to fit a company’s needs.
Hiring a professional bookkeeper will save you time, save you money, and allow you to focus more on what you enjoy in your business. Doesn’t that sound worth it? It’s like investing in the financial health of your business.