Self-Employed DIYers - Why Should You Hire a Bookkeeper?

Written By:  Jeanne Franche


You're self-employed and successful, congratulations!  You wear multiple-hats:  manager, salesman, marketer, tradesman.  But who handles your books?

If your answer is either "myself" or "my spouse" you may save hard-earned dollars, effort and time if you hire a bookkeeper.

Are You a DIY (Do It Yourself) Bookkeeper?

Many self-employed professionals try to save money by doing the finances themselves, or getting a spouse to do them.  But you need to ask yourself, how much is your time worth?  How much is your spouse's time worth?  If you or your spouse's occupation is something other than bookkeeping - it's likely that your time would be better spent on other tasks, such as drumming up more business.

Cost of a Bookkeeper

The going rate for a professional bookkeeper may seem steep to some, but it's important to weigh out the benefits.  For small companies, hiring a professional bookkeeper may be less expensive than having a full-time staff doing the books, if you factor in the costs of wages, benefits, vacation pay and downtime when business is slow.  Many bookkeepers will charge by the hour, so if there is only a few hours of work a month - that is all that you pay for!  Also - a professional bookkeeper will have experience (which is the advantage of working for multiple clients), and will therefore be able to do the job much faster than a non-bookkeeper would.

An added plus?  It will also save you money and headache when, at year-end your books are done and ready for the accountant at tax time (as opposed to a shoebox full of receipts).

How Is Your Business Doing?

A professional bookkeeper can tell you - with monthly financial statements, how your company is doing - instead of waiting until year-end to find out if you turned a profit.  Knowing how your company is doing month-to-month will help you make financial decisions that will directly impact your company, you will see your cash flow, control your expenses and cash outflow, and have more control over overspending.  You can even have your income statement compare against a  yearly budget or with previous year comparisons.

Accounting Programs

There is a vast range of accounting program products out on the market, ranging from user-friendly to extremely sophisticated.  Find a professional bookkeeper who will know how to navigate the program of your choosing - and if you are tech savvy, could show you how to pull reports yourself!  Imagine having years of your financial data at your fingertips, readily accessible within minutes.

How to Find a Bookkeeper?

Now that you're convinced that you need a bookkeeper, how do you find one?  Word of mouth is a good place to start - check with your accountants, fellow business associates, etc. - if they've had experience with a really good bookkeeper.

Do not hire a bookkeeper based on price alone - your risk is that you'll get what you pay for.  Do your research: check references, experience and, after year-end, check with your accountants.

Do you have any other reasons why DIYers should hire a bookkeeper, please post in the comments section below!