5 Common Myths About Working With A Bookkeeper
Most small business owners start their own business because they have a passion or new idea for something, want to be their own boss, or are seeking more financial stability and/or earning potential.
So, you work hard and attract more clients and customers (yay!) …and you’re getting busier…and you’re slowly implementing systems and structure…and you’re ramping your subscriptions and tools…and you’re trying to keep up and manage ALL THE THINGS!
But let’s be honest, there are things in our business that we enjoy doing (like spending all day in Canva designing your next blog cover image…guilty!), and then there are those things that we avoid like the plague – like MINDING YOUR MONEY – because it can be tedious tracking expenses and how do you know if you’re even doing it right…and it takes SO MUCH TIME away from the fun stuff.
Or we tell ourselves that we’ll get to it at the end of the month…we’ll catch up…. we’ll block that chunk of time off on the calendar…but somehow client work and customer needs always take over. So, you just avoid your business finances until the dreaded tax season.
You want a fairy godmother bookkeeper…part bookkeeper, part business and finance coach and part therapist. You know you need help, but there’s no way your business is ready for a bookkeeper, right?
Bookkeeping is one of those professional services that many people don’t quite understand. What do they do? What’s the difference between bookkeeping and tax prep? How much do they cost? Can I afford one? Is it too early in my business? Shouldn’t I know how to do this myself? Any of this sound familiar?
Let’s start by dispelling the 5 COMMON MYTHS ABOUT WORKING WITH A BOOKKEEPER right now.
MYTH #1 – I HAVE TO BE MAKING HUNDREDS OF THOUSANDS OF DOLLARS IN REVENUE
Wrong. Bookkeeping is about record keeping. Pure and simple. Because of this thing called TAXES. It doesn’t matter if you’re making $200 a month or $2 million a month. You don’t even have to be making a profit.
Think of bookkeeping as the gym. It doesn’t matter where you are when you start. You just have to start.
MYTH #2 – I HAVE TO HAVE MY BUSINESS FORMALLY SET UP AND INCORPORATED
Wrong. Ideally you would have gone ahead and opened a separate business checking account, but even if you haven’t, a bookkeeper can still jump in and whip your books into shape.
What they care about are your monthly statements from your checking account and your credit cards, whatever you’ve used for any business-related purchases. They review and log every transaction correctly, for IRS-purposes.
Like that pack of pens and printer paper from Wal-Mart you grabbed last week…that you forgot about and are obviously a business expense…they log that purchase…and remember, these purchases all help reduce any taxes you might owe come April 15!
MYTH #3 – I HAVE TO HAVE TONS OF MONTHLY TRANSACTIONS
Wrong. Doesn’t matter. It’s not about the amount of financial activity (or the amount of revenue – see MYTH #1), it’s about recordkeeping, plain and simple. Without proper recordkeeping you risk an IRS audit (no thank you) or overpaying on your income taxes.
But here’s the thing about monthly transactions – you may be thinking, well I only have 4 clients that I invoice for my service-based business each month…but when you think about your expenses, you may have a LOT more than you realize.
All those monthly subscription for tools and project management tools, that we forget about? Car mileage for work-related trips? That annual conference for continuing education? That freelancer you hired for 2 hours last week? All monthly transactions that should be tracked.
MYTH #4 – MY BOOKS HAVE TO BE ALL CAUGHT UP AND IN ORDER
Wrong. Again, back to the gym reference, this is like saying I’ve gotta lose 10 pounds before I join that fancy gym. Um, no Deborah – you go to the gym to lose the 10 pounds, and nobody’s judging!
Bookkeepers are used to “catching up” your books, on the regular! And instead of you forcing yourself to spend hours trying to mindlessly log months’ worth of financial activity, bookkeepers enjoy it and let’s be honest, are more skilled at it than the majority of us.
In fact, instead of showing up at your CPA’s office once a year with a box full of receipts and paying CPA hourly rates for them to piece together 12 months’ worth of bookkeeping, that is exactly where a bookkeeper can help.
MYTH #5 – A BOOKKEEPER WILL JUDGE ME (oh Lawd, no!!!)
Right??? They are going to see the nitty gritty of your business, and you’re scared they will judge you. They might think you don’t know what you’re doing, and that you aren’t making enough money. Or ask questions you can’t answer and think you’re not bright. It’s all so overwhelming, so let’s just avoid it.
No, a bookkeeper WILL NOT JUDGE YOU. Back to the gym – does a trainer judge you, or are they just anxious to help you?
You know when a bookkeeper rolls his/her eyes – when business owners don’t use them! When they just avoid any sort of bookkeeping system at all or worse, try to DIY their books without much expertise.
Do any of these ring true for you? If you’ve ever made any of the above assumptions, you are not alone!
So, now you may curious to know…” When IS the right time to bring on bookkeeping support in my biz?”
As a savvy business owner, you know that spending time on the parts of your business that ONLY YOU can, is crucial for success.
And just like bringing in graphic design help or a VA for support, it may be time for you to bring on a bookkeeping unicorn. Grab the checklist to find out!