Entrepreneurs thrive on a mentality of DIY. If you do everything yourself then you don’t have to pay for anything unless you absolutely have to. With this mentality it can be very difficult to justify getting financial help in the form of a bookkeeper or accountant, but this may actually be exactly what you need. Although you have to pay for a bookkeeper or accountant, doing so can actually save you money in the long run and over the short term too. Here we explore whether it is worth hiring a bookkeeper or accountant.
Do you need a bookkeeper or accountant?
This is a bit of a trick question because actually you may need both. Accountants look at the big picture to make sure your business is financially stable and heading in the right direction. A bookkeeper, on the other hand, can help you with the nitty-gritty of your business and make sure that everything is being recorded properly in terms of income and outgoings. Without accurate books an accountant can be useless, but without an accountant your business may lack direction.
A bookkeeper should be called in if and when you are struggling to keep track of receipts and finances. If you start to lose track of finances in any way then you need the help of a bookkeeper. Unravelling the web of tangled finances will be a nightmare at year end and can cost you a fortune if you are left unable to claim tax deductibles back.
An accountant should be brought in at least once a year to look at the finances of your company and check that you are making best use of tax free spending. Your accountant can look at the big picture to ensure you are making the best possible profits without getting caught up in the day to day turnover.
Bite the bullet
While it can be very hard to take the plunge and spend money on a bookkeeper or accountant, you should enlist the help of both at least once a year to firstly check your processes and secondly tell you how to improve them. Bookkeepers and accountants bring expertise that you are unlikely to have that can save you far more than they cost. Contact Propeller Advisory today if you’d like to learn more about our virtual CFO services.