3 Reasons to Hire a Bookkeeper for Your New Business

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There is a lot to think about when starting a business. For example, who is going to do your books? Accounts are an important part of any business – no matter how small – and then there is keeping up with invoicing, goods in, and other financial aspects. Are you planning to keep your own accounts? Unless you are a qualified accountant or have done books before, we suggest it’s not the best way forward.

We’re going to give you three strong reasons why hiring a bookkeeper is a sensible move. Let’s start with the obvious one – which especially applies if you don’t have the experience or necessary knowledge to keep accurate books.

1 – You’re Not a Bookkeeper!

If you are not a bookkeeper you need to think about how you are going to keep accurate accounts and up to date financial records. Doing so takes time, and that time could be better spent on the areas of the business that are within your remit. You may be expert at marketing, for example, or sales, or customer service. You need to dedicate your time to those areas and looking after your clients, rather than doing the books.

Here’s the good news: you don’t need a full-time member of staff as a bookkeeper. There are many service providers that are dedicated to serving smaller, growing businesses with accounts and bookkeeping services and solutions, and they are not as costly as you might believe. Check them out and see what we mean.

2 – You Need a Close Eye on Cash Flow

For a growing business cash flow is perhaps the most important factor in the day to day running of the company. You need to know where your cash is going, and how much you are spending, and compare it to your income and return on investment. A bookkeeper will put together regular accounts that allow you to see what is happening and how you are improving your sales.

They will also prepare your monthly accounts, and if you have a board of directors or are in a partnership, will enable you to provide regular reports to your fellow business owners. This will all be done digitally, although some bookkeepers will also keep a physical set of books besides the digital examples.

3 – You Can See Where Money Can Be Saved

Cost saving is enhanced by having accurate books. For example, accounts will show where you are spending on products that are not selling as expected. This allows you to either switch your marketing to those or to cut back on that area of the business and expand on those that are bringing in the profits.

Bookkeeping is about having one eye on the financial side of the business at all times and knowing how your finances are flowing. With a professional bookkeeper providing you with regular reports you can know as soon as possible where problems are arising, and deal with them before they get out of hand.

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