If you’re a business owner and you don’t make managing your finances a priority, then you’re more likely to have to deal with problems when it comes to filing tax returns and paying bills. One option to consider is hiring a bookkeeper. Like with any business decision, there are pros and cons of doing so. For example, you’re accessing expert help but you’ll have to plan around their busy schedule - here’s a full rundown.
Advantages of Hiring a Bookkeeper
When you outsource parts of your business, you’re accessing a pool of knowledge and expertise that you don’t have. Hire a bookkeeper and you’ll receive expert help from someone that knows what they’re doing.
They’ll have worked with other businesses like yours, providing support and advice to ensure they take the best course of action. Plus, they can translate any complicated jargon into simple English so that you’re always in the know.
Keep in mind that there are no qualifications needed to carry out bookkeeping. This means that anyone can do it, so nothing is stopping you from completing your own bookkeeping tasks.
Focus on Other Areas of Your Business
When project deadlines are approaching and the phone doesn’t stop ringing, the last thing you want to worry about is balancing your company’s books. It’s an unwanted distraction that takes your focus away from things that will actually make you money.
Hire a bookkeeper and it’s one less thing to worry about. You can concentrate on tasks and projects that will drive business growth, safe in the knowledge that your bookkeeping is being taken care of by an expert.
But, it’s worth keeping in mind that bookkeepers will have many different clients, so they may not always be working on your business or they might prioritise someone else over you.
A Fresh Outlook on Your Business
Sometimes, it’s difficult to make hard choices or see when something’s not right when it’s your own business. When we’re the owner, we look through rose-tinted glasses at company finances and we’re willing to overlook potential red flags.
Work with a bookkeeper and they offer a new perspective on your business. They’re less likely to be sentimental and base decisions on cold, hard figures. However, this can be a little jarring and can lead to some awkward conversations between you and your new bookkeeper.
Disadvantages of Hiring a Bookkeeper
Are You Getting Value For Money?
Bookkeepers are an extra expense you’ll have to think about when it comes to assessing the company’s financial health. Especially as their invoices can soon pile up.
When you first hire a bookkeeper, there may be hidden costs that you weren’t aware of. Or, they may lock you into a contract so even though you no longer need their help, there’s nothing you can do.
As we’ve mentioned, you can do the bookkeeping yourself - there are no special qualifications or certificates you need to have. Plus, there are inexpensive and straightforward bookkeeping apps or desktop software available for download that can help you at a fraction of the price.
You’re Not in Control
You’ll always have the final say on any significant business decisions, but if you hire a bookkeeper, then you’re handing over some control. You’re placing your trust in a stranger who you may only have spoken to over the phone.
Not having complete visibility and control over your books can feel uncomfortable. Someone else is analysing your business and managing its finances.
Plus, you’re at the mercy of the bookkeeper’s schedule.
You might need important information but they’re out of the office or visiting another client. Some bookkeepers don’t actually keep daily records, something that you might want and be used to.
If you’d rather have access to everything straight away and have complete control, then hiring a bookkeeper might not be for you.
Human Error and Accountability
Carry out your own books and it’s you who’s responsible for how accurate and honest they are. Hire a bookkeeper and that administrative burden is shared by someone else. Because of this though, you’ll have to trust them and their work.
If they make a mistake or report inaccurate results, then it’s you who’ll face the consequences. This is why it’s so essential to carry out thorough research before you hire a bookkeeper.
Do the bookkeeping yourself with the help of apps and you won’t need to worry about the accuracy of a bookkeeper. Even if you don’t think you have the knowledge or experience, there are tools available that can guide you through the whole process - allowing you to save money and stay in control.
Do the Bookkeeping Yourself With Our Checklist
With our useful checklist, you can carry out your company’s bookkeeping yourself without having to worry about the drawbacks of a professional bookkeeper. This list can help you to stay organised and on top of your finances so you’re ready for HMRC’s deadlines well in advance.
Download your free copy of the checklist now using the link below.