Too many business owners seem to think that maintaining their company’s books comes down to only two factors: Is it going to save you money to do it yourself, and can you handle it relatively well on your own? And while those are important factors to consider, there are so many other benefits that come from hiring a professional for business bookkeeping in Provo.
You Can Spend Your Time Elsewhere
When analyzing the cost of hiring a bookkeeping service for your company, did you also consider the opportunity cost associated with maintaining the books on your own? While the $0 price tag on DIY bookkeeping might seem enticing, as the saying goes, time is money. Every hour you spend on balancing your books and reconciling your accounts is an hour that you could be spending on other aspects of your business.
What if you spend those hours on meeting with prospective clients, or improving your marketing strategy instead? The opportunity cost of doing your own bookkeeping is incredibly high. When you hire a third-party professional bookkeeper, you open yourself up to work on things that will actually help your business to grow, rather than just maintaining the status quo.
It’s More Accurate
Even if you consider yourself an expert at Excel or QuickBooks, you’re simply not going to be as accurate as a professional bookkeeper. Our certified accountants and bookkeepers receive regular training to stay up-to-date on the latest financial laws, bookkeeping requirements, and software to ensure that your books are up to par. Plus, they’re trained to catch the smallest details and inaccuracies that can have snowballing consequences for your business, and correct them to ensure the highest level of accuracy possible.
And while many business owners are great with numbers and have a high attention to detail, there are also numerous things that demand your attention. That divided attention can lead to little mistakes that can have large ramifications. But a third-party bookkeeper is dedicated to the sole task of ensuring total accuracy and usability of your business’s books, which means they’re far less likely to make a mistake.
It Protects You and Your Company
Arguably one of the most important reasons to hire an outside bookkeeper is for the protection that it provides for you, your company, and any business partners you may have. The smallest mistake on your company’s books can lead to potential legal action, and if you’re maintaining your books yourself, you open yourself up to an entirely new collection of issues. You’ll be carefully scrutinized as various organizations try to determine whether you simply made a mistake, or if you’re trying to cook the books for your company.
There are many ways in which a simple bookkeeping error can come back to haunt you. If the error is found when you file your taxes, you can face charges and fines from the IRS. You can face legal action from clients, partners, and business investors. Even if your bookkeeping error doesn’t lead to actual legal action against your business, you can lose the trust of your investors and business partners, and that can have serious consequences for your business.
But when your books are being handled by an outside party, the potential for a conflict of interest is eliminated. Even if an error arises—and those are uncommon when you work with the professional bookkeepers at Biesinger & Kofford CPAs—dealing with the matter is much simpler when it is clear that there is no conflict of interest involved.
It’s Cheaper Than an Employee
Now, you might be asking yourself, “If I’m not going to do my own bookkeeping, why not just hire an in-house employee to handle it?” The fact of the matter is, most small businesses simply don’t have the need for a full-time bookkeeper, and hiring one is going to be a large waste of money for your business. Not only will you likely be paying them a full-time salary for only a few hours of work each week, but you’ll also have to worry about providing them with equipment, insurance, benefits, and so on. Even hiring a part-time employee requires you to supply the items mentioned above, and those costs can quickly add up.
With a third-party bookkeeper, you can pay for only the services you need, and you don’t have to worry about providing the bookkeeping software, computer, or any benefits. You get the exact services you need, and don’t have to pay for an employee to sit in a chair and browse Facebook between bookkeeping tasks. At Biesinger & Kofford CPAs, we even offer multiple tiers of bookkeeping services, so we can give you the exact level of assistance you need for your business.
Whether you just want us to review your books and create a P&L each month, or you want us to fully handle all aspects of your business’s bookkeeping, you can get exactly what you pay for, and not worry about unnecessary extra costs. All in all, a third-party professional bookkeeper is a budget-friendly bookkeeping option that protects your business, provides higher accuracy, and allows you to focus more time on growing your company.