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What are the Pros and Cons of Hiring a Bookkeeper?

Advantages and Disadvantages of Bookkeeper

By cruse burkePublished 2 years ago 3 min read
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Startup Accountants in Croydon

If you own a business and don't prioritise financial management, you're more likely to run into issues when it comes to completing tax returns and paying invoices. Hiring a bookkeeper is one option to consider. As with every business decision, there are advantages and disadvantages to doing so. For example, you're getting expert advice, but you'll have to work around their hectic schedule - here's a comprehensive breakdown.

The Benefits of Hiring a Bookkeeper

Professional Assist

When you outsource certain aspects of your organisation, you have access to a reservoir of knowledge and skills that you do not have. Hiring a bookkeeper will provide you with skilled assistance from someone who knows what they're doing.

They will have worked with other firms similar to yours, providing assistance and advice to ensure they pursue the right course of action. Furthermore, they can translate any sophisticated jargon into easy English, ensuring that you are always up to date.

Keep in mind that no qualifications are required to perform bookkeeping. This means that anyone can do it, thus there is nothing stopping you from doing your own bookkeeping.

Croydon Startup Accountants

Concentrate on Other Aspects of Your Business

When project deadlines loom and the phone never stops ringing, the last thing you want to worry about is balancing your company's accounts. It's an unwelcome diversion that diverts your attention away from activities that will truly bring you money.

Hiring a bookkeeper will relieve you of one more worry. You can focus on tasks and projects that will drive small business growth, knowing that your bookkeeping is being handled by a professional.

However, keep in mind that bookkeepers will have a variety of clients, so they may not constantly be working on your business or may prioritise someone else over you.

A New Perspective on Your Company

When you own your own business, it might be challenging to make difficult decisions or recognise when something isn't right. When we're the owner, we see the company's finances through rose-colored glasses and are inclined to overlook possible red signs.

Working with a bookkeeper will provide you with a fresh view on your company. They are less prone to be sentimental and prefer to make decisions based on cold, hard facts. This, however, can be startling and lead to awkward conversations between you and your new accountant.

The Drawbacks of Hiring a Bookkeeper

Are You Getting Your Money's Worth?

Bookkeepers are an additional expense to consider while measuring the company's financial health. Especially when their invoices can quickly build up.

When you initially hire a bookkeeper, you may discover that there are hidden fees that you were not aware of. Alternatively, they may bind you to a contract that prevents you from leaving even if you no longer require their assistance.

As previously said, you can handle your own bookkeeping; no additional credentials or certificates are required. Furthermore, there are inexpensive and simple bookkeeping apps or desktop software accessible for download that can assist you at a fraction of the cost.

You are not in command.

You will always have the last word on any major business decisions, but if you hire a bookkeeper, you are giving up some power. You're putting your faith in a stranger with whom you may have only spoken on the phone.

It can be unsettling to not have complete visibility and control over your books. Someone else is analysing and managing your company's finances.

Furthermore, you are at the mercy of the bookkeeper's schedule.

You may require critical information, but they are out of the office or seeing another customer. Some bookkeepers do not keep daily records, which you may like and be accustomed to.

Hiring a bookkeeper may not be for you if you prefer immediate access to everything and complete control.

Accountability and Human Error

Carry out your own books, and you are alone responsible for their accuracy and honesty. Hiring a bookkeeper relieves you of the administrative strain. You will, however, have to trust them and their job as a result of this.

If they make a mistake or report incorrect results, you will bear the penalties. This is why it is critical to conduct extensive research before hiring a bookkeeper.

You won't have to worry about the accuracy of a bookkeeper if you do your own bookkeeping with the help of apps. Even if you don't believe you have the necessary expertise or experience, there are tools available to guide you through the entire process, allowing you to save money while remaining in charge.

If you have any query regarding accounting services in Croydon please feel free to contact Cruseburke.

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