Congratulations! You’re starting a business. As you prepare for success and try to get all your ducks in a row, you need to make an important decision regarding who will be handling your finances. For many entrepreneurs just starting out, their main focus is on saving as much money as possible by doing as much work as possible themselves. While this can be a good business practice in some areas, it may not be the best decision for your business’ books. Keeping track of your financial transactions will take valuable time and focus away from all the other important tasks you need to complete. If you’re not sure of all the ins and outs and rules and regulations, doing your own books could actually be detrimental to your growing business. There’s no question that you will need help. The question is, do you need a Bookkeeper or an Accountant? The answer, most likely, is both.
Bookkeepers are a valuable addition to any business. Bookkeepers take care of the day-to-day financial transactions, in addition to administrative tasks like invoicing, payroll, government remittances, paying bills, and balancing the bank accounts. In the beginning, you may choose to outsource your bookkeeping needs until the company grows enough to require or afford, a full-time employee to do the job. Most bookkeeping services generally offer affordable packages for small businesses, which can also save you money if or when you need to hire an accountant. If you are using a knowledgeable bookkeeper who keeps all your records correct and on track when it does come time to bring an accountant into the picture it will be a lot less work for them. This will also save you money since accountants generally charge more than bookkeepers.
So, when will you need to hire an accountant? Accountants generally come in to play for more specialized, higher-level situations like a tax audit, financial forecasting, and customized reports. Since these tasks, while crucial to your success, tend to be infrequent, most businesses will hire an accountant on a case-to-case basis.
When it comes down to it, we all have our talents. You started your business to showcase yours, so why not let a professional bookkeeper or accountant show theirs!
Keenans Accounting Service was founded in 1998 to serve the Midland and surrounding area. We’re a professional team who are dedicated to helping you define your bottom line. We keep a keen eye on your numbers so you don’t have to.