How Much Does a Bookkeeper Cost? Plus When You Need to Hire One
There are currently more than 1.7 million bookkeepers working throughout the United States.
Have you been considering hiring a bookkeeper to help you with your business? Are you on the fence about bringing someone new onto your team?
You might have questions like “How much does a bookkeeper cost?” and “Is this an expense I can justify business?”
If you’re unsure about working with a bookkeeper, keep reading to learn the answers to these and other common bookkeeping questions.
What Does a Bookkeeper Do?
A bookkeeper is responsible for managing all of a business’s accounts. They keep careful records of transactions and take note of how much money is coming in and coming out of the company. They produce financial statements for the business owner and managers to review, too.
Benefits of Hiring a Bookkeeper
There are plenty of reasons why a business may want to bring a bookkeeper on as part of its staff. The following are just some of the benefits they provide:
Bookkeepers are trained professionals with an eye for detail. When you have a bookkeeper handling your day-to-day finances, you’re less likely to see serious errors in your books, the kind that can lead to more expenses for your company over time.
Stay on Schedule
Having a bookkeeper on your staff means you’ll never miss a due date for a bill or payment deadline for quarterly taxes again. They’ll make sure you keep up with all your payments and get everything submitted when it’s supposed to be, without you having to scramble at the last minute to get things done.
Gain More Time
If you’ve been trying to handle your business’s bookkeeping needs yourself while also dealing with all the other aspects of running your company, important things are likely falling through the cracks. A bookkeeper allows you to stop doing things that aren’t part of your wheelhouse and focus more on what matters to the long-term success of the company.
Gain More Insight
A bookkeeper can also help you gain more insight into how your company is doing from a financial standpoint. They’ll create reports that help you learn more about your monthly expenses, as well as how much is coming in. This, in turn, can help you make more informed decisions moving forward.
How Much Does a Bookkeeper Cost?
Hiring a bookkeeper isn’t exactly cheap. The average bookkeeper’s salary is somewhere between $30,000 and $40,000 per year, which can be pretty steep for a new small business that’s still getting its bearings.
This doesn’t mean you can’t afford help when it comes to managing your finances, though. You can also hire bookkeepers on a freelance basis.
This can be a good compromise, as it allows you to only pay for the services you need, and you don’t have to worry about the extra costs of things like a salary, benefits, and office space.
When Do You Need to Hire a Bookkeeper?
If your business is brand new, you might have a strong need for a bookkeeper yet. Eventually, though, you’ll want to invest in some bookkeeping services to avoid financial problems later on.
Here are some signs to be on the lookout for that indicate you need to look into hiring a bookkeeper:
You’re Spending Too Much Time on the Books
Are you handling the bookkeeping-related tasks for your company? Are you spending more time on them than your other responsibilities?
If this is the case, your business is unlikely to grow at the same speed that it could if you had someone whose sole responsibility was to handle the books for you.
Your Books Are Outdated
Maybe you’re in charge of handling the book right now, but, with everything else on your plate, they’ve fallen by the wayside and become outdated.
If you’re struggling to keep your books up-to-date, your business could be in trouble without you even knowing it. This is where having a bookkeeper can come in very handy.
You’re Missing Out on Tax Deductions
Bookkeepers can help you ensure you’re taking advantage of every tax deduction that’s available to you. With their knowledge and assistance, you can save a lot of money when tax season rolls around.
If you think you might be missing out on certain tax deductions and credits, it’s time to bring a bookkeeper on to help you avoid this in the future.
You Have Unpredictable Cash Flow
Do you find that you never know how much money’s in your accounts? Do you find yourself coming up short when it’s time to pay bills or pay freelancers for their work?
A bookkeeper can help to prevent this from happening by monitoring your books and making sure there’s always enough available to cover your expenses.
Your Profits Aren’t Rising
Have your sales increased while your profits have stayed the same? If this is the case, you may need to cut some costs somewhere to increase your profit margins. A bookkeeper can help you monitor your expenses and figure out ways to save money.
You’re Paying Your Accountant to Do Your Bookkeeping
You may think you don’t need a bookkeeper’s help because you already have an accountant. If you’re paying your accountant to handle bookkeeping tasks (which are way below their paygrade, frankly), though, you’re probably spending more than is wise.
A bookkeeper can help you save money later on and free your accountant up to focus on other matters.
Find a Great Bookkeeper Today
You now have a clear answer to the questions “how much does a bookkeeper cost?” and “when do you need to hire a bookkeeper?” and it’s time for you to decide whether it’s worth it for you to bring one on as part of your team.
Bookkeepers bring a lot to the table when it comes to managing your finances and making sure your business runs in the smoothest way possible. Keep this information in mind so you can make the right decision for yourself and your other employees.
Need help choosing the right bookkeeper for the job? We have lots of hiring-related posts on our blog that can help with your decision. Check them out today.