When to hire an accountant:
As you start your business you may feel the need to get advice from an accountant for things like business structure, which can affect the way you do taxes for your business, but it is also a good idea to consider bringing an accountant on as a part of your financial team once your business is more established. An accountant can help with overwhelm when your business is being audited, or when applying for loans or grants. Accountants can also be beneficial in an advisory role for your business’ financial planning.
When to hire a bookkeeper:
A big thing you want to consider when thinking about turning your books over to a professional is the scope of the work and how much time you are currently spending doing your bookkeeping. Whether it’s because your business has grown exponentially, or because the thought of bookkeeping has you pounding your head, if you find you are consistently falling behind on keeping your books up to date, it is probably the right time to start looking for a bookkeeper. Bookkeepers are crucial to ensuring that you have accurate financial information for your business, which will allow you to confidently update budgets, make purchases, and plan for your business’ financial future.
Can’t my accountant do my bookkeeping?
Yes, some accountants do offer bookkeeping services. However, accountants typically charge at a higher hourly rate than bookkeepers and often won’t provide monthly financial reports. It is recommended to find an accountant and bookkeeper who work in harmony as a part of your financial team.
You should hire a professional when the time you spend on your books outweighs the price it will cost you to hire a bookkeeper and/or an accountant. Time is money, and your time as a business owner is invaluable to your business. Hiring a professional will not only reduce the amount of overall time spent on your finances, but it will also allow you to focus those precious hours on the goals you have in mind for your business.