Is hiring a bookkeeper better than the owner doing it?
Bookkeeping is crucial for a business and needs good maintenance to save the company from losing. May businesses fail without a proper understanding of bookkeeping as things can get out of control quickly.
For example, your expenses can escalate without even realizing it, and you will not know how much money is coming in and leaving the business. Some products might sell to the expectations that you need. So, there could be lots of issues that you could face that can lead to a great downfall in your business.
Bookkeeping functions.
If you have at least the basic knowledge, also depending on the business, whether you are not making a significant income, then you can do it. If not, my advice will be no, and instead of hiring someone, you can outsource the work.
The essential aspects of bookkeeping are:
Cash flow: This shows the money coming into and leaving the business. So that means you must monitor this daily to avoid negative cash flow.
Budget: You must set a budget to keep your expenses under control, and if any costs go above the specified amount in the budget, you must revise the budget to keep the budget under control.
Daily booking activities.
I will leave a list of bookkeeping activities that might help you learn about the importance of some items that help you run your business smoothly.
So, the bookkeeping checklist will remind you as to WHAT NEEDs DOING AT A PARTICULAR TIME. You will not miss anything when you follow it carefully.
Weekly
Checking bank balance
Sales invoice payments.
Suppliers bill payments
Save and organize receipts
Weekly invoicing to credit customers
Categorize transactions to software
Move money to a savings account.
Monthly
Follow–up on unpaid invoices
Pay contractors
Pay yourself
Reconcile the bank account.
Get income statements
Balance sheet
Any other reports.
Quarterly
Estimate tax payments
Review Prior Quarter’s Goals to Actuals
Set Next Quarter Goals
Follow-Up on Unpaid Invoices, write off or Send to Collections
Invest profit on you.
Annual
Reports Requested from Accountant
Review Annual Reports Against Goals
Set New Year Goals
Reassess Your Salary, Profit, Tax Savings, and Expenses
Outsourcing
To outsource your work, please ensure that you have the basic knowledge of bookkeeping not; you will not know what to expect from them. Then the possibility of something going wrong to affect your business could happen.
Another, if you decide to outsource your accounting work, you must do enough research to get the right company or an individual. You must check their records and their line of specialty.
Besides, outsourcing allows you to make the best use of the time to do things that you are good at; maybe you are an excellent marketer, then you can concentrate on that to grow your business. The business owners wear many hats and will not be able to finish all the tasks on time. Therefore, outsourcing is beneficial to the proprietor and the organization. Further, not everyone is an expert in all the fields, they will need help from other experts, and when they get service from another company in this way, they will not have any employment issues.