If you’re spending hours logging transactions and reconciling bank accounts (or trying to at least) for your business, congratulations! That means that your business is growing and it’s probably time to outsource.
When you hire a bookkeeper for your business you can expect to have accurate, up-to-date books, CPA-ready financial statements for tax season, and, most importantly, more time to spend growing your business. If you’re ready to bring in bookkeeping support, keep reading to learn more about the three key options available to you.
1. Hire Local
If you need to meet with your bookkeeper face-to-face or you depend on physical records for your business, hiring a local freelancer or firm is a great option for you.
Freelance Bookkeepers: Freelancers work with you individually to get your books done. Their communication methods can be more flexible to meet your needs, including in-person meetings or working online. Freelancers usually bill hourly, but you might be able to work out a fixed rate depending on your needs.
Bookkeeping Firms: Firms also work with you individually to get your books done, but they might have a larger client roster than freelancers and processing times could be slightly longer. They also bill hourly, but at higher rates than freelancers. Those drawbacks come with perks, though. Many bookkeepers at firms are professionally certified. And, unlike with freelancers, you won’t experience service gaps in the event that your account representative is on leave as another bookkeeper may be assigned to you in the interim.
Regardless of whether or not you hire a freelancer or bookkeeping firm, make sure the person you work with can be trusted to handle your sensitive documents by asking for references. Also be sure that he or she is able to offer you immediate access to your financial documents as well as secure all financial correspondence.
2. Hire Online
If you use online banking, are comfortable with accessing your financials online, and prefer communication via email, messaging, or over the phone, an online bookkeeping service would be a great fit for you. And, unlike with local bookkeepers, you’re generally charged one flat monthly rate instead of hourly. Yay for cost savings!
Just like hiring a bookkeeping firm, except virtually instead of locally! Online bookkeeping services assign you to a team of bookkeepers, or in cases such as Anchor, assign you your own dedicated bookkeeper and give you access to their online platform to conveniently access and download your monthly bookkeeping reports.
To get started using an online bookkeeping service, you only need to connect your online banking and business credit card with your account and your bookkeeper can take it from there, asking follow up questions if needed.
When it’s time to hand off your documents to your accountant for income tax filing, many online bookkeeping services can provide you with a year-end financial package which includes everything your accountant needs to accurately and easily file on your behalf. Anchor Bookkeeping goes a step further by guaranteeing CPA-approved financials at the end of each month.
3. Hire an In-House Employee
If your business is growing exponentially, it might be time to hire an in-house bookkeeper who is solely dedicated to your business and all of its bookkeeping needs. Bringing someone in-house comes with a heftier price tag: According to Salary.com, the median salary for a bookkeeper is $42,697 – before payroll taxes and employee benefits. Many businesses who need in-house support start off by hiring a bookkeeper part-time and increasing their hours as needed or assigning administrative tasks during the down periods.
Regardless of whether or not you hire a local firm or freelancer, enlist an online bookkeeping service, or bring in in-house bookkeeping support, make sure that your bookkeeper is able to communicate with you in your preferred method in addition to delivering accurate, tax-ready financial documents.
As you decide on who to bring in for bookkeeping support, remember that embarking on this next step in business growth is huge! Anchor Bookkeeping salutes you.