You may own a small business. In addition, you might have assigned more than a few tasks to yourself to make your business grow. For example, you might have taken the responsibility on your shoulders to contact suppliers, market your products, answer customer queries and complaints, etc. Plus, you might have also assigned the job of managing your books of accounts to you. Nevertheless, having a lot on your plate does not mean you can manage everything efficiently and error-freely for your business. You may assign hectic tasks, such as bookkeeping to a Toronto bookkeeper to overcome stress and effectively manage your business.
Further, you can outsource bookkeeping services from professionals, such as GTA Accounting, to manage your books cost-effectively. However, hiring a bookkeeper has its pros and cons. Thus, you should realize the advantages and disadvantages of hiring a bookkeeper before you hire one.
Who Is a Bookkeeper? What Do Bookkeepers Do?
A bookkeeper can help a business manage its day-to-day finances. In addition, bookkeepers monitor cash flow from different accounts for businesses, in addition to bills and invoices. Bookkeepers also organize books for businesses to help them manage money effectively. Basically, a bookkeeper manages financial administrative tasks. In addition, bookkeeping tasks that a bookkeeper handles are related to the preparation of accounts and keeping a record of daily financial transactions.
Bookkeepers are professionals who are responsible for consolidating books of accounts, following up on past-due payments, and billing reminders. Bookkeepers also process payments for suppliers and even process payroll. It is a better idea for a business to hire a bookkeeper than an accountant to handle financial tasks. Besides, bookkeepers are cheaper to hire than an accountant. Before we tell you about the pros and cons of hiring a bookkeeper, we shall like to clarify you the difference between a bookkeeper and an accountant.
Difference between a Bookkeeper and an Accountant
Bookkeepers manage basic financial tasks, whereas accountants are more suitable for a higher level of financial analysis. For example, accountants handle financial forecasts, auditing, and tax preparation. Accountants are more likely to give business owners the best financial advice and insights. Therefore, accountants are more qualified than bookkeepers when it comes to handling financial tasks. Moreover, many small businesses in Toronto outsource bookkeeping services from professionals to cost-effectively manage their financials.
Pros and Cons of Hiring a Bookkeeper
Hiring a bookkeeper has both pros and cons for a business. Further, letting someone other than you manage your finances also poses risks for your business. Now, let us tell you about the advantages and disadvantages of hiring a Toronto bookkeeper:
Pros of Hiring a Bookkeeper in Toronto:
Experience in Handling Financial Records:
Even non-professionals can perform the job of bookkeeping, including inexperienced bookkeepers. Nevertheless, experienced bookkeepers perfectly handle the job of bookkeeping. When an experienced bookkeeper handles your books, it also prevents errors that may lead you to suffer a financial loss.
A Business Can Benefit from a Fresh Perspective:
Bookkeepers can give business owners an outside perspective on managing their budget and running their business more efficiently. Plus, they can teach businesses the way to cut their costs and provide them with insight into their spending & more.
It Will Help You Save Money:
Hiring a bookkeeper will help you save money, too. Business owners save money while outsourcing bookkeeping services from someone who can work off-site. It aids businesses in saving money as hiring a full-time bookkeeper is more costly for them. Besides, businesses have to offer employee benefits alongside a fixed salary when they hire a full-time bookkeeper.
It Also Helps Business Owners Focus on Core Tasks:
When business owners do not have to spend money to organize their books, they get more time to focus on the core business activities to help their business grow.
Cons of Hiring a Bookkeeper in Toronto:
Hiring an Outside Bookkeeper Is Risky:
When you hire an outside bookkeeper, it poses a high risk for your business. It poses risks as bookkeepers can access businesses’ sensitive bank data, such as account numbers and online banking passwords.
Bookkeeping Mistakes Becomes a Company’s Mistake:
Businesses are accountable for errors, missed/late payments, and noncompliance by a bookkeeper.
You May Know about the Hidden Cost:
Businesses may not know about the hidden cost when they hire bookkeeping services from an outside bookkeeper.
Hiring a bookkeeper has pros and cons. Nonetheless, business owners can best use bookkeeping services to their advantage when they outsource them from a reliable accounting firm.
Small business owners can outsource bookkeeping services to manage their books of accounts. In addition, hiring a Toronto bookkeeper has pros and cons. Advantages of hiring a bookkeeper are as follows:
- Experience in Handling Financial Records
- A Business Can Benefit from a Fresh Perspective
- It Will Help You Save Money
- It Also Helps Business Owners Focus on Core Tasks
Cons include possible risks and hidden costs, in general. Nonetheless, businesses can minimize risks while outsourcing bookkeeping if they choose a reliable firm to outsource bookkeeping services.