When to hire a Bookkeeper and an Accountant
Small business owners are experts at the products and services they sell. Many of them, however, are not so knowledgeable about — or interested in — the financial operations of the business. Recording sales transactions, paying supplier invoices, doing payroll. Boring!
But it has to be done. Otherwise, it just piles up and turns into an even bigger headache. Transactions get lost, mistakes are made, bills aren’t paid, filing taxes is a nightmare. If this is your situation, a professional bookkeeper can take the load off your shoulders and leave you free to do what you love in your business.
What a bookkeeper does
A bookkeeper is your day-to-day financial pro, maintaining complete and accurate records so that your small business can operate efficiently. A bookkeeper’s responsibilities include:
- Implement standard accounting systems that your accountant can easily use
- Record daily sales, purchases, payments and receipts in your ledgers
- Go over your existing records and fix mistakes made by inexperienced staff
- Enter tax deductible expenses with the correct coding
- Help you understand what the numbers mean
- Notify you of potential issues such as cash flow problems or delinquent invoices
What an accountant does
Your accountant is your high level expert. An accountant’s responsibilities usually include:
- Examine and adjust accounts
- Provide long-term business planning and tax-consulting advice
- Use your bookkeeping data to file tax returns and other official reports
- Review and handle IRS notices
How to find the right people
Whether you decide to bring a bookkeeper on board as a full-time employee or use a consulting service, be sure to investigate your candidates carefully. After all, they will have access to confidential data and could have a significant impact on the success or failure of your small business.
One great option is a company which offers both bookkeeping and accounting services. That way, they can easily coordinate their efforts to provide you with the best quality, probably at a better price than if you paid two separate entities.
A bookkeeping company which offers cloud-based accounting software can make your life even easier. Xendoo integrates with Xero accounting software to provide small businesses with real time numbers. Accounting, on the cloud.
When you’re ready to put your books into the hands of professionals, Xendoo stands ready to help with accounting services designed especially for small business. From catch up bookkeeping to payroll to taxes, our experts crunch the numbers while you get back to the work you do best.