If you’re a budding entrepreneur trying to navigate the tricky world of business, you may be wondering whether you need a bookkeeper. The job of a bookkeeper is to look after an organisation’s accounts, recording transactions and producing financial reports for the benefit of managers and supervisors.
Although the benefits of this service are fairly obvious, there is still an unwarranted amount of scepticism surrounding the profession. Whilst hiring a bookkeeper is, of course, a decision that should be based on business-specific circumstances, make sure that you do not fall for the following myths:
1. Bookkeepers are only good for data-entry
This prevailing myth does a great disservice to the expertise of bookkeepers everywhere. Whilst data-entry is, of course, one aspect of the job, the profession involves a range of other responsibilities including spotting account discrepancies, checking entries for accuracy, and contacting customers or suppliers to chase payments or issue refunds.
2. Bookkeepers are judgemental
Some business owners are reluctant to involve bookkeepers as they are worried that their finances will be judged harshly. If you’re having a tough time financially, however, there is no better time to share your accounts with someone that can help.
3. Accounting software has made bookkeeping an obsolete profession
Accounting software requires a good deal of training to get the hang of and can cost business owners a considerable amount of precious time. Hiring a bookkeeper is still the most efficient way of tracking and recording transactions when it comes down to it.
4. Only big businesses need to use bookkeepers
It is a common misconception that small businesses cannot benefit from bookkeeping services. Indeed, tracking the accounts of a small enterprise still takes up a considerable chunk of time and outsourcing the task can free up time for growing the business.
5. Bookkeepers are not cost effective
DIY bookkeeping can actually end up costing businesses more money than if they were to hire a bookkeeper. This is because the number of hours lost in wage labour is likely to come at a higher price. Whilst hiring a full-time bookkeeper may indeed be too expensive for small firms, it is important to remember that they may also work on a part-time freelance basis.