Using Accountants and Bookkeepers for Small Businesses

Bookkeepers: Most people who start out in business are fairly convinced that they will be able to keep their own books. With the proliferation of software products on the market it would seem that the process should be fairly simple. The belief is that you will:

Save money by not hiring a bookkeeper

Keep a closer eye on the financial aspect of the business

Maintain privacy

While a small start-up business may allow for such self-management, as a business grows it is typically in the best interest of the owner(s) to hire bookkeeping help. Someone who specializes in the field can, in the long run, save you time and money. The details involved in maintaining accurate books can be lost when combined with the many other tasks and responsibilities of running a business. A business owner’s time is too valuable to spend on journal entries. For this reason, there are individuals who specialize in the field.

Prior to hiring a bookkeeper, estimate the amount of hours he or she will need to prepare your books on a monthly basis. Small start-up companies generally do not need a fulltime bookkeeper. Use word of mouth and ask another business owner who handles his or her books and whether or not he or she would recommend their bookkeeper. The local Chamber of Commerce, industry associations, Internet job sites, or even your accountant can also prove to be worthwhile sources for finding a qualified bookkeeper.