Five reasons for small business owners to hire a bookkeeper

Hiring a bookkeeper for the busy small business owner may seem like an extra expense for the company that has a small number of monthly transactions, or for a company that has a relatively simple operation and carries little inventory.

While paying a bookkeeper means an outlay of cash, consider the benefits for the sake of company cash flow.

Reason One: Strategic planning

Hire a bookkeeper who will meet once a month to show where the company is most profitable and why it's profitable. A good bookkeeper will do more than just enter data. The professional will provide data to help the business owner make important decisions, like customers to potentially drop or reasons to sell more to an existing customer.

Reason Two: Staying organized

A shoebox full of receipts creates stress come tax time. Jackie David, an accountant in La Canada, California, and owner of Your Back Office, understands the daily pressures small business owners face. "Having an accountant or bookkeeper can reduce the craziness that's inherent with figuring out taxes owed," she said. "There may not be much cost associated with someone else doing the books. For most businesses around La Canada and Pasadena, I can handle their needs on no more than a few hours per month."

Reason Three: Business coaching

A bookkeeper who gets to know the business will understand the mission of the company and make recommendations at a number of key levels. The business owner who has a trusted bookkeeper knows she has a person to call who understands the functions and desired outcomes in production, marketing, and sales.

Reason Four: Staying updated

A good bookkeeper knows how the latest technologies can benefit a company. Jackie David works with companies that have revenues of less than three million dollars per year. She promotes cloud computing. "Updates are easier than installing clunky software and cloud computing, cloud accounting, is safe. If you bank online, that's an example of cloud accounting."

Reason Five: Leveraging Expertise

Most small business owners get used to doing everything themselves if they started on a bootstrap budget. Leveraging the talent of a bookkeeper allows the business owner, especially the single service provider, to focus on running the business. "Ask your bookkeeper or accountant if they provide transaction-based pricing," said Jackie. "That's what I offer to my clients so they only pay for what they need."

Paying for the services of a bookkeeper, may provide opportunities for the business to exceed the cost by generating greater profits.