Which one do I need first?
Business owners you’ll want to bookmark this!
Bookkeepers record data on the business activities:
- Recording Transactions
- Invoicing
- Payroll
- Reconciling
Accountants then review, analyze and present the data for:
- Transaction Irregularities
- Reconciliations
- Financial Statements
- Financial Analysis
- Tax Planning
- Tax Return Preparation
Put simply, an accountant verifies that the bookkeeper’s work is accurate and attempts to prevent fraud that can destroy your business. They also catch classification errors that can lead to inaccurate financial statements, which ultimately affect decisions & trigger tax audits
So which one do you need as a small business owner? And where do you find either?
In reality both, but a bookkeeper first. Why? Removing yourself from the daily transaction recording is a guaranteed win, when it comes to ROI and the cost for a bookkeeper is low.
Software such as QuickBooks Online (QBO) makes bookkeeping widely accessible & affordable.
Additionally, the training on how to use QBO is also available to many individuals as well, for free.
You can use this link to signup and save 70% on QBO for 3 months.
So who do you hire as a bookkeeper?
Someone you can trust with your finances & business. For most successful business owners, strapped for cash this is themselves, or their relatives lending a hand.
When should you hire an accountant?
Consider hiring one when the revenue you could generate per hour, multiplied by the number of hours you spend managing your bookkeeper & accounting, exceeds the cost of hiring an accountant.
As the business owner, your time should not be spent on bookkeeping or accounting, because your time should eventually be better spent growing your top end revenue by running the day to day operations.
You should focus on your revenue & ensure you’re reserving enough for taxes.
Additionally you should hire an accountant when you need:
– Monthly oversight of your bookkeeper & business
– Insightful information for better managerial decisions
– Assistance with tax planning, preparation, & audits
The more money you make, the more money your accountant can save you, paying for themselves many times over the engagement. This isn’t just in tax savings, but also through financial consulting, and implementing fraud prevention or detection with appropriate internal controls.
Have any other questions as a business owner?
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