When Should a Small Business Hire a Bookkeeper?

Quick Answer

A small business should consider hiring a bookkeeper when keeping up with the books starts taking too much time, financial records are falling behind, or the owner isn’t confident everything is being recorded correctly. You don’t have to wait until there’s a problem to get help.

AZ Easy CPA provides bookkeeping and CPA services in Chandler, Arizona and beyond for small business owners who want their financial records kept organized and current.

What Are the Signs That It’s Time to Hire a Bookkeeper?

There isn’t one specific point when every business needs to hire a bookkeeper. For some owners, it happens when the business grows. For others, it happens when they realize they haven’t opened QuickBooks in three months.

Some common signs that it may be time include:

• Your bookkeeping keeps getting pushed to the bottom of your to-do list
• You’re several weeks or months behind
• You spend hours trying to figure out QuickBooks
• You don’t know where certain transactions belong
• Your bank account doesn’t match what’s in QuickBooks
• You’re unsure whether your financial reports are correct
• You have more transactions than you can comfortably keep up with
• You’d rather spend your time running the business

If any of these sound familiar, professional bookkeeping may make things easier.

Should I Hire a Bookkeeper Before My Books Get Behind?

You can. In fact, hiring a bookkeeper before things become disorganized can prevent a much larger job later.

Many business owners wait until they’re months behind before asking for help. At that point, someone may need to go through hundreds of old transactions, figure out what they were for, fix mistakes, and check months of bank and credit card activity.

Regular bookkeeping is simpler. Instead of fixing old problems, the bookkeeper keeps things organized as you go.

If you’re already behind, that doesn’t mean you’ve waited too long. A bookkeeping clean-up can help get your records caught up before moving into regular monthly bookkeeping.

Is My Business Big Enough to Hire a Bookkeeper?

You don’t need a large business to hire a bookkeeper. Even a small business can have plenty of financial activity to keep track of.

You may have customer payments, business expenses, a bank account, credit cards, subscriptions, equipment purchases, advertising costs, loan payments, and other transactions happening every month.

The size of the business isn’t always the best way to decide. A better question is whether doing your own bookkeeping is still working.

If your books are accurate, current, and easy for you to manage, you may be fine handling them yourself. If bookkeeping is becoming confusing or time-consuming, getting help may make sense.

How Much Time Can a Bookkeeper Save Me?

The amount of time will be different for every business, but bookkeeping can take more time than many owners expect. It’s not just entering transactions. You also need to review them, put them in the right categories, check your accounts, fix mistakes, and figure out anything that doesn’t make sense.

A bookkeeper handles much of that regular work for you. That means less time sorting through transactions and more time available for customers, sales, employees, and the other things you need to do to run your business.

For many owners, saving time is one of the main reasons they decide to hire someone.

Should I Hire a Bookkeeper or a CPA?

It depends on the kind of help you need. If you mainly need someone to keep your financial records organized, maintain QuickBooks, and keep up with your transactions, you’re looking for bookkeeping help.

A CPA has additional education, testing, and licensing and may provide other accounting services and guidance.

Some businesses work with a separate bookkeeper and CPA. Others use a CPA firm that provides bookkeeping so both types of help are available in one place.

Frequently Asked Questions

Should I hire a bookkeeper when I first start my business?

You don’t necessarily need to. Some new business owners can handle their own bookkeeping. Starting with a good system, however, can make things much easier as the business grows.

Can I hire a bookkeeper if I’m already months behind?

Yes. A bookkeeper can help with catch-up or clean-up bookkeeping before starting regular monthly bookkeeping.

Do I need a full-time bookkeeper?

Most small businesses do not need someone working on their books full time. Bookkeeping services can often be provided based on the amount of work your business actually needs.

Do I still need a bookkeeper if I have QuickBooks?

You may. QuickBooks can bring in transactions and organize information, but someone still needs to review everything, put transactions in the right places, and make sure the accounts match.

Can a CPA firm provide my bookkeeping?

Yes. Some CPA firms provide bookkeeping services in addition to other accounting services, which can allow you to get both types of support from the same place.

Looking for Bookkeeping or a CPA in Chandler, Arizona?

AZ Easy CPA provides bookkeeping and CPA services in Chandler, Arizona and beyond. If you’re wondering whether it’s time to hand off your bookkeeping, reach out to Chris at AZ Easy CPA.

Chris can look at where your books currently stand, answer your questions in plain English, and help you decide what kind of bookkeeping support makes sense for your business.