Being a small business owner is a little like boxing.
You’re up there in the ring by yourself. Fighting your way forward. Winning small and big battles. Maybe your opponent is discouragement, or financial trouble, or competition in your field. But you’re a fighter. You’re not giving up! And hopefully you have some good people on your side, cheering you on, bringing you cold water, keeping your eyes on your goal.
As a small business owner, one of the battles you fight is trying to keep expenses down and possibly operating on razor thin margins.
You might be pinching every penny just to make ends meet – so why would you hire a bookkeeper to manage your business finances? Can’t you just do it on your own, and save the money?
The short answer is: Yes. You can do it on your own.
There are a lot of programs out there that make the complicated financial lingo easier to understand, and help to keep you organized without taking an exorbitant amount of time. And if you’re the type who loves knowing all the little details of your business and likes to be hands-on in every area, you will probably do a good job keeping track of your business finances. You can use Xero, Quickbooks Online, Wave, or Freshbooks to keep things straight.
But if you’re not a numbers lover, if you feel overwhelmed every time you look at that pile of receipts in the corner, and if you break out in a cold sweat at the thought of tax time, you might enjoy a little help.
Someone in your corner to explain things, keep finances organized, and encourage you that YES! Your business can be a success!
We all need a little encouragement now and again, and it never hurts to have someone on our side! Owning a small business can be lonely and very, very difficult. So many hours of work, so many new skills to learn. The battle of deciding what you should do yourself to save a buck, and what you should get help on to save your time and sanity!
Choosing to spend the money to hire a great bookkeeper might be a tough choice. You will wonder if it is worth it or not. That is not a decision I can make for you. But I can tell you that choosing to have someone help you keep your finances clear can only help and strengthen your business. And you will most likely save money in the long run through better budgeting, finding deductions you can claim, and reducing unnecessary expenses.
Once you have decided that you don’t want to manage your finances on your own, you need to decide what kind of bookkeeper you would like in your corner.
Do you want someone in-house, or would you like to outsource to a bookkeeper? It depends on the size of your business, but for most small businesses and startups, outsourcing is the way to go. Outsourcing your bookkeeping is much less expensive than hiring an employee to do your bookkeeping for you. If you allow me to work with approximate numbers, hiring a part-time employee (15-20 hours per week) at $10 per hour to do your books can be $600-800 a month! Way more than most small businesses can afford. Plus you have to add in the expenses of having another employee like taxes and social security matches and more.
So if you decide to outsource, how do you decide who should do it?
Do you want somebody who lives overseas and enters data into a computer all day? They are the cheapest option, but they won’t really offer you much real benefit. The numbers might be all organized in front of you, but the personal touch and explanation will be missing. The saying is true: You get what you pay for! But if you truly only have a few dollars a month to spend on your finance management, that could be an option for you. They usually charge between $8-$12 per hour.
You can also hire a bookkeeper to do specific projects for you. This can be helpful near tax time, or if you are buying a new business, or just want to get all your books caught up so you can start doing it yourself. But expect to pay quite a lot if the project will take a long time. A good bookkeeper or accountant can charge $50-$75 per hour.
You could also decide to hire a firm to manage your bookkeeping. Some of them claim to do it all: bookkeeping, accounting, payroll, and more. And maybe they do – but again, your data goes to a person you don’t know and gets returned to you with a report or two, but that’s it. They often charge an hourly fee, which leaves you wondering if they’re doing the work as fast as they could. They don’t intimately know how your business works and don’t know what matters most to you. Your numbers might be in neat lines on a report, but the heart is missing. The cost can be anywhere from $75-100 an hour to monthly fees ranging from $99 to over $500 depending on the size of your business.
Then there’s me. A real person who gets to know you and your business. Who doesn’t charge an hourly fee, so you don’t have to sit there looking at your watch thinking about how much this brain-storming session is costing you. Who will do research on the side to see how I can give the best advice for growth and success. I’m the one starting my own small business, so I know what it is like. I’m the one answering your e-mails, your phone calls, and making sure your finances are in tip-top shape. I’m the one who wants you to succeed and will do whatever I can to help you grow and flourish. And I will try my hardest to help you save more money in a year than it cost to hire me in the first place. My pricing is laid out clearly and honestly, and I am always willing to consider your situation and the stage your business is at. I also have special pricing for midwives in their unique situation.
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