Hiring A Bookkeeper – Should You Do It, When & How

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A bookkeeper is a person who looks after your books. In the modern world of computers, the internet, and cloud accounting solutions, the term bookkeeper is somewhat quaint, but the job role is still essential for most businesses, particularly larger SMEs and big companies.

A bookkeeper is usually responsible for the day-to-day financial work of a company. This can include all or some of the following duties:

  • Keeping daily income and expenses records
  • Creating and sending invoices to clients
  • Receiving and recording bills
  • Receiving and recording receipts

Why do You need a Bookkeeper?

A bookkeeper brings a number of benefits to your business. It is not essential to have one, of course. You can do it yourself, but bookkeepers bring added value which justifies the expense.

  • They save you time – the day-to-day management of the financial side of your business has to be done. By bringing in a bookkeeper, you can concentrate on other aspects of your business.
  • It’s skilled work – a bookkeeper with skills and experience will do the job more efficiently and accurately, saving you time and money in the long run.
  • Better information – you will have better information to base decisions on, plus a good bookkeeper can give advice and insight on your financial position or processes.
  • Cash flow management – cash flow is essential to all businesses. A bookkeeper will ensure it is properly managed.

Do you need a Bookkeeper?

Whether or not you need a bookkeeper depends on your business and objectives. Most businesses reach a point where it is essential though, usually because of increased revenues and/or workload.

How to hire a Bookkeeper.

Approach hiring a bookkeeper like you would approach hiring any other professional in your company. It is the type of role that many undertake on a contract or freelance basis, so you don’t always have to employ someone directly. Many bookkeepers also work on a part-time basis, while in larger companies they are full-time and sometimes only assigned to a specific number of tasks.

To decide what you need you will have to assess your business. Think about how many transactions you process each month and look at your current credit control, invoicing, payroll and debt collection processes. The type of software you use is also important.

Once you have an understanding of what you need you will have to decide whether you want an accountancy practice, an individual bookkeeping consultant, or an employee.

Whatever route you decide you should interview multiple prospects to find one that is a good fit. Interview them twice if you have to as this is a crucial position in your company. After all your accountancy software is only as good as the data that is put into it. Also, an accountant can help you plan and grow your business as well as meet your tax and regulatory obligations, but they are only as good as the information they have to work with too. A bookkeeper is an essential link in the chain.

Things you should think about include the amount of experience they have, whether they know the software you use, where they will be based, what qualifications they have, and what references they have. This will ensure you get a person who can help you take your business to the next stage.

 

For more help with your business or its accounts, please contact a member of the Gilroy Gannon team today.

 

 

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