Does My Small Business Need a Bookkeeper?

Quick Answer

Your small business may need a bookkeeper if keeping track of your money is taking too much time, your books are falling behind, or you aren’t sure whether your financial records are correct. A bookkeeper can handle the regular work of organizing your income, expenses, bank accounts, credit cards, and QuickBooks.

You don’t have to wait until your books are a mess to get help. AZ Easy CPA provides bookkeeping and CPA services in Chandler, Arizona and beyond for small business owners who want to keep their finances organized.

How Do I Know If I Need a Bookkeeper?

Many business owners start out doing their own bookkeeping. When you’re first getting started and only have a few transactions, that may work perfectly well.

As the business grows, keeping up with the books can become more difficult. There may be more customers, expenses, bank accounts, credit cards, subscriptions, equipment purchases, and other transactions to manage.

You may need a bookkeeper if:

• Your bookkeeping is several weeks or months behind
• You keep putting off working on your books
• You’re spending too much time in QuickBooks
• You aren’t sure where certain expenses belong
• Your bank or credit card accounts don’t match your records
• You’re unsure whether your financial reports are right
• You have transactions you don’t recognize or understand
• You simply don’t want to handle the bookkeeping yourself

You don’t need to have all of these problems to benefit from professional bookkeeping. Sometimes getting the work off your plate is reason enough.

Can I Do My Own Small Business Bookkeeping?

Yes. Plenty of small business owners do their own bookkeeping, especially when the business is simple and they are comfortable using QuickBooks.

The important part is keeping up with it and making sure things are recorded correctly. If you consistently update your books, check your accounts, and understand what you’re looking at, doing it yourself may work for you.

The problem comes when bookkeeping keeps getting pushed aside. A month goes by, then another, and eventually you have hundreds of transactions to sort through. At that point, hiring a bookkeeper can save you time and help get everything back in order.

Is My Business Too Small for a Bookkeeper?

Probably not. You don’t need a large company or hundreds of employees to use bookkeeping services.

Even a one-person business has money coming in and expenses going out. You may have a business bank account, credit card, software subscriptions, advertising costs, equipment purchases, and other expenses that need to be tracked.

The question isn’t really whether your business is big enough for bookkeeping. It’s whether handling the books yourself is still working for you.

If your system is simple and accurate, you may not need professional help yet. If you’re confused, behind, or spending hours trying to keep up, a bookkeeper may be useful even for a very small business.

What Happens If I Wait Too Long to Hire a Bookkeeper?

If you’re keeping up with your own bookkeeping correctly, there may be no problem with waiting. But if your books are already falling behind, waiting usually means there will be more to clean up later.

Older transactions can also become harder to figure out. You may remember exactly what a $250 purchase was for this week, but six months from now it may be much harder to remember.

Regular bookkeeping helps prevent that problem. Your financial activity is reviewed while it’s still recent, and your books stay more current throughout the year.

How Can a Bookkeeper Help My CPA?

Good bookkeeping gives your CPA organized financial information to work with. If your books are missing transactions or things are recorded incorrectly, your CPA may need additional information before they can properly understand what’s happening.

When your bookkeeping is current, your income, expenses, and accounts are already organized. This can make it easier to answer questions about your business and understand your financial reports.

Some small businesses choose a CPA firm that also provides bookkeeping so both types of support are available in one place.

Frequently Asked Questions

When should I hire my first bookkeeper?

There isn’t one perfect time. You may want to hire a bookkeeper when keeping up with the books becomes difficult, takes too much time, or you aren’t confident you’re doing it correctly.

How often should a bookkeeper work on my books?

Many small businesses have their bookkeeping updated monthly. Businesses with more transactions may need it done more often.

Do I need a bookkeeper if I use QuickBooks?

Maybe. QuickBooks helps organize financial information, but someone still needs to review transactions, put them in the right places, and make sure the accounts match.

Can a bookkeeper catch up old bookkeeping?

Yes. Catch-up or clean-up bookkeeping can help organize older transactions, fix mistakes, check accounts, and bring your financial records current.

Is hiring a bookkeeper worth it?

It can be if bookkeeping is taking time away from running your business or you aren’t confident your financial records are right. The value is often in having accurate books without having to personally spend the time maintaining them.

Looking for Bookkeeping or a CPA in Chandler, Arizona?

AZ Easy CPA provides bookkeeping and CPA services in Chandler, Arizona and beyond. Whether your books are already behind or you simply want to stop handling the bookkeeping yourself, reach out to Chris at AZ Easy CPA.

Chris can look at where things stand, answer your questions in plain English, and help you figure out whether professional bookkeeping makes sense for your small business.