If you are starting a small business, and have some accounting background, have been successful balancing your checking account, or are just good at numbers, you may get by without hiring a professional bookkeeper. Otherwise, you need one. But even if you are good at numbers, accounting the finances of your fledgling business can easily divert your focus from what you are good at and what you should be doing to grow your business.
For sure, there are online applications and off-the-shelf programs like Quickbooks and Peachtree that can help you do your own bookkeeping in the same way that MS Word has made clerks and secretaries unnecessary for drafting correspondences or making reports. You can save on the bookkeeper’s salary. But the more pertinent question to ask is: “Is it the wise thing to do?” Here are just two things to consider:
Focus on what you like to do or are best at doing
You launch your business because you have a strong faith that what you can do for your target markets can generate income. That’s because you know you’re good at making the product or providing the service. You do not launch a business because you know you are a good bookkeeper on the side. Since the days of the industrial revolution, the key ingredient in a successful business is specialization. You have engineers, technicians, accountants, lawyers and HR managers who are each an expert contributing a specialized service to make a business prosper. A bookkeeper can be an employee, a business partner, or a contractual hire. There are pros and cons to each, but one thing for sure, every business, large or small, is best served when you have people specialized at doing their best in each major aspect of the business.
It pays to have a professional bookkeeper as your business sidekick. In fact, many astute business owners start their enterprise with an bookkeeping partner they can trust right from conceptualization. The bookkeeper proceeds to do most of the legwork to incorporate and register the business, while the owner focuses on getting the production line ready or creating awareness in its target markets.
It’s all about process efficiency and saving time
A survey conducted by Outright.com shows that small business owners generally spend 5 hours every month on bookkeeping, when a professional can do the same job 63% faster with less errors. Your time as a business owner acting as the CEO and COO of your company is too valuable to spend on bookkeeping which is better performed by people who can do the job more efficiently because they are trained for it and have the experience, neither of which most business owners have.
At Pomponio & Company we provide the following bookeeping services:
- Bank reconciliation
- GST, PST, WCB filing
- Accounts payable
- Accounts receivable
- Annual reporting for tax filing
- Screen Sharing Support
Today, the buzzword in today’s corporate world is…“outsourcing.” It’s about letting professionals who earn a living doing what they do best to do what you could try to do yourself. That means you don’t even have to hire a bookkeeper and be saddled with all the employment requirements. You can just contract the work to a professional bookkeeping company. In fact, outsourcing can best benefit start-ups that are not yet saddled with the employees they need to let go. But regardless of how you acquire the talent, bookkeeping is a specialized process more effectively performed by professionals. In the same way a business hires or contracts the services of a lawyer or auditor, getting a professional bookkeeper gives the small business owner the piece of mind knowing it is doing the right thing in managing its finances.