Should You Do Your Own Bookkeeping?

As a small business owner, there’s no escaping the need to keep financial records in order. It’s what allows your business to run smoothly and keeps headaches at bay, especially when tax time rolls around. But, is bookkeeping something you should you do on your own? Or, is it wiser to call on a professional for help? 

What Do Bookkeepers Even Do?
In short, good bookkeepers ensure that the financial transactions of your business are accurately filed, reported on, and managed. They also play a key role in providing significant financial insights into your business through careful analysis of annual sales, purchases, expenses, and even payroll. Bookkeepers may also specialize in specific industries, which enables them to have more meaningful conversations with small business owners, and offer valuable recommendations on business processes. Expert bookkeepers also make sure your financial data is recorded and securely stored, so it’s far easier to stay compliant and provide necessary information to accountants or auditors. In addition, skilled bookkeepers use the latest accounting and bookkeeping technologies to get robust reports that shed light on overall business performance. 

Do You Have Enough Time?
When you became a small business owner, the amount of responsibilities you took on probably doubled, maybe even tripled. But, you still have only 24 hours to work with each m, and you understand the value of how every minute is spent. Yeah, it’s totally possible to make time to do your own bookkeeping, but is that the best use of your limited hours? Also, are you confident you have the skillset to perform the tasks needed to keep your business financials organized? Analyzing and managing balance sheets, accounts receivable and payable, financial statements, general ledgers, tax calculations, and more. If you have the time and enjoy doing these jobs, more power to you! If not, you may want to consider other options. 

Does It Make Sense?
Time commitments aside, ask yourself – does it make sense to do your own bookkeeping? There are other factors to consider to help determine whether it’s something you could, and should, manage yourself. Will you constantly be wondering if you’re recording all of your business transactions properly? Are you being strategic about how you’re spending your money and how you can better save? What would you rather be doing?

Finding the Right Bookkeeper
If you’ve exhausted yourself trying to do your own bookkeeping, it’s time to start looking into finding the right bookkeeper for your business. Know what specific questions to ask when hiring a bookkeeper, like what their experience in your particular industry looks like, what kinds of accounting software they use, and what other solutions they are able to provide. Small business owners are known to have a DIY-attitude, and that’s something to be proud of. But some things just may be better left handled by a seasoned professional.