Hey there, fellow business owner! Are you still recovering from paper cuts after a grueling tax season? Did you finally give up and give in on capturing all of your expenses just to get your taxes over with? I feel you. But fear not, because I’m about to reveal the secret to end those tax season inspired daytime stress sweats and hours of nighttime teeth grinding: hiring a bookkeeper.
Now, I know every penny counts when you run your own business, so let’s dive into the magical world of bookkeeping and uncover the true return on investment (ROI) you can expect.
The Price Tag of Bookkeeping: Let’s get straight to the numbers, shall we? I’m a freelance bookkeeper and that means for a solo-preneur or small business owner, you’ll be paying around $395 (most people start here) to $795 (a few people get here) a month to get your bookkeeping “done” based primarily on your transaction volume. Let’s dive into what that amorphous concept can mean – because it varies business to business. Sometimes “done” means recording all of your transactions, categorizing them appropriately and reconciling your accounts; sometimes “done” means assisting you with accounts receivable (helping you get paid) or accounts payable (helping you pay others); sometimes “done” means making sure your employees get paid on time; sometimes “done” means helping you to file state and federal taxes; and always what “done” always means is that you have up to date financial information to make the best decisions you can make for you and your business.
Tax Savings – The Superpowers of a Bookkeeper: Now, let’s talk about the magical abilities of a bookkeeper to save you money. First off, they can reduce your tax burden. With well-organized books, all your expenses are accounted for, making it a breeze to identify deductible expenses and slash your tax obligations. No more missed deductions! Secondly, they protect you from those dreadful IRS fines. Accurate bookkeeping means accurate tax filings, avoiding penalties and leaving you stress-free.
Accounting Fees – Build Your Team Wisely: Picture this – tax time rolls around, and you hand off your chaotic records to your accountant. But wait, there’s a problem. Your accountant needs organized books to work their magic, and that means extra fees for you. Ouch! On the other hand, hiring a bookkeeper is like having a trusty sidekick who ensures your books are up to date, saving you from those unexpected charges. Plus, bookkeepers cost 200-700% less than accountants for bookkeeping tasks.
Having an accountant on your team is a smart move. Having an accountant do your bookkeeping is like hiring Yo-Yo Ma to play 2nd cello – that’s a Yo-Yo naw in my book. We all have our role to play – and my roll is to support you – in part by communicating with your accountant so that your finances are seamless.
Battling Burnout and Saving Your Precious Time: I know you’re already working tirelessly to make your business thrive. Adding bookkeeping to the mix can lead to stress and mental fatigue. But fear not, dear friend, because I’m here to remind you of the value of your well-being. Stress weakens the immune system and hinders your enjoyment of what you do best! So, let a bookkeeper shoulder the bookkeeping burden while you focus on what truly matters.
Unleash the Power of Your Time: While I do not believe that time is money – I do believe that your time is valuable (perhaps even more valuable than money!). Your brilliance is best spent doing the things that allow you to shine – whether that’s building your business or playing catch with your kid (or if you’re like me, cooking complex gourmet meals for your dog – nothing but the best for young Steven!). So calculate the worth of your precious hours. Imagine what you could accomplish if you didn’t spend them on bookkeeping. Your time is a precious resource. Don’t let it slip away on mundane tasks.
Crunching the Numbers – DIY Bookkeeping Costs vs. Bookkeeper Savings: Let’s do a little math together, shall we? Say you’re a registered massage therapist. Your hourly rate is $90, and you spend two hours a week on bookkeeping. That’s approximately $180 per week, which adds up to a staggering $9,360 per year. But fear not, this is why the profession of bookkeeping exists! (at least for now until all of our jobs are done by AI). At just $395 per month, you’ll be saving a magnificent $4,620 annually. Now that’s a superhero-level victory!
Let’s be real though, if you’re like the majority of business owners, bookkeeping is deep in the dusty spiderwebbed recesses of a to-do list that probably can be called a “should-do” list at this point. And you will be waiting until March of next year to put in those bookkeeping and tax prep hours. By which time, you will have zero accurate memories of how you spent or received your money and will have made zero genius decisions for your business that are based on actual financial data. Worse, you might have even made MANY not so genius decisions based on guesses about your financial data.
More Than Just Number Crunching: It’s not just about crunching numbers and balancing books. Those things need to get done and you will be happy you have a thorough record come tax time – you’ll pay less money to your accountant and you’ll have less stress overall knowing that you’re collecting them all when it comes to deductions.
But the real value in a bookkeeper comes from the insight that can be provided to you through reporting that is specifically tailored to your industry and your business. And the power you will have to answer questions that effect your life and the lives of the people who work for you. E.g. Will I make payroll this month? Can I pay my taxes? How much can I pay myself? Are my margins good or great? How much am I spending on marketing and can I cancel that random subscription I don’t recognize? Do we have the budget for a bagpipe player at the company holiday party?
I wouldn’t be surprised if this article has convinced you that you are ready to hire a bookkeeper – so let’s chat about my favorite thing! Your business.
If you still want to learn more, you could still give me a call just for fun OR you could check out these resources.