When to Consider Hiring a Professional Bookkeeper – Papillon House

November 27, 2023 2:37 am

When to Consider Hiring a Professional Bookkeeper – Papillon House

Feeling swamped with the practical details of your business finances? Is bookkeeping turning into a juggling act you didn’t sign up for? It sounds like it’s high time to bring a professional bookkeeper on board. In today’s fast-paced business world, it’s important to have accurate and organized financial records. Let’s explore why hiring a bookkeeper can be a valuable investment for your business.

Key Takeaways:

  • Consider hiring a professional bookkeeper when bookkeeping tasks become too time-consuming, when errors become frequent, when your business is growing rapidly, or when you need financial advice.
  • Benefits of hiring a professional bookkeeper include saving time and resources, reducing the risk of errors, receiving expert financial advice, and allowing business owners to focus on other aspects of the business.
  • When looking for a bookkeeper, determine your business’s needs, research, and compare services, check for qualifications and experience, read reviews, and ask for referrals.

What Is Bookkeeping?

Bookkeeping is the process of recording and organizing financial transactions for a business. It involves keeping track of income, expenses, and assets, and maintaining accurate financial records. Bookkeeping provides valuable information for business owners to monitor their financial health, make informed decisions, and fulfill tax obligations. It is crucial for managing cash flow, budgeting, and preparing financial statements. Hiring a professional bookkeeper can ensure accurate and timely record-keeping, allowing business owners to focus on core operations.

Pro-tip: Regularly reviewing and reconciling financial records can help identify discrepancies and prevent financial errors.

Why Is Bookkeeping Important for Businesses?

Bookkeeping isn’t just a business chore; it’s the heartbeat of your financial success. Picture this: having every dollar accounted for, understanding where your business stands financially at a glance.

That’s the magic of meticulous bookkeeping. It’s not just about keeping tabs on income and expenses; it’s about empowering your business decisions with solid financial insight. Plus, let’s not forget the peace of mind that comes with being in full compliance with those annoying tax laws.

And the cherry on top? When it’s time to woo investors or secure a loan, your pristine financial records will speak volumes about your business’s stability and growth potential.

In short, bookkeeping is your financial crystal ball, giving you the clarity to steer your business toward success.

Overwhelmed by the numbers game? A professional bookkeeper is your financial guardian angel. They’re the maestros of accuracy, compliance gurus, and insight providers, liberating you to focus on what you do best – growing your business. With your financial records in expert hands, you’re set to soar.

According to a report by Sage, small businesses spend an average of 120 working days per year on administrative tasks, including bookkeeping​​. This significant amount of time could be better utilized in focusing on core business activities.

What Are the Basic Bookkeeping Tasks?

The role of a bookkeeper is crucial in maintaining the financial records of a business. Basic bookkeeping tasks are fundamental to managing a business’s finances effectively. These tasks include.

1. Recording Transactions

Recording transactions is a crucial aspect of bookkeeping for businesses. Here are the steps involved:

  • Keep a record of all financial transactions conducted on a daily basis.
  • Create a ledger to consolidate and organize accounts.
  • Include details such as date, description, amount, and account classification for each transaction.
  • Ensure accuracy by reconciling bank statements with recorded transactions.

2. Creating Financial Statements

Creating accurate and reliable financial statements is essential for businesses to track their financial performance, communicate with stakeholders, and make informed business decisions. These statements are also vital for creating financial forecasts, which can help businesses plan for the future and make strategic decisions. To effectively create financial statements, follow these steps:

  • Record all transactions accurately and categorize them appropriately.
  • Compile the necessary data, including income, expenses, assets, and liabilities.
  • Organize the data into financial statements, such as the income statement, balance sheet, and cash flow statement.
  • Analyze the financial statements to assess the business’s profitability, liquidity, and solvency.
  • Use financial statements for decision-making, preparing accounts, and financial forecasts, which are crucial for predicting a business’s future financial performance.

3. Managing Accounts Receivable and Payable

Effective management of accounts receivable and payable is crucial for businesses to maintain healthy cash flow and financial stability. Here are the steps involved in managing these aspects:

  • Contact suppliers to establish clear payment terms and expectations.
  • Monitor and track invoices to ensure timely payment from customers.
  • Follow up on past due payments by sending billing reminders and making personalized communication.
  • Process payments received promptly and accurately.

In the 1930s, businesses faced challenges in managing accounts receivable and payable manually. With the advent of computerization and accounting software in the 1980s, the process became more streamlined and efficient, enabling businesses to handle these tasks with greater ease and accuracy.

4. Reconciling Bank Statements

Reconciling bank statements is a vital task for businesses to maintain accurate financial records and effectively manage their money. This process involves comparing internal records with bank statements to identify any discrepancies. Here are the steps involved in reconciling bank statements:

  • Gather bank statements and corresponding financial records.
  • Compare each transaction on the bank statement with the records.
  • Identify any discrepancies, such as missing or incorrectly recorded transactions.
  • Investigate and resolve any discrepancies by contacting the bank or updating the records.
  • Update the financial records to reflect the reconciled bank statement.
  • Monitor cash flow and ensure accurate financial reporting.

When Should a Business Consider Hiring a Professional Bookkeeper?

1. When Bookkeeping Becomes Too Time-Consuming

When bookkeeping becomes too time-consuming, it may be necessary to hire a professional bookkeeper to handle tasks more efficiently. Here are the steps to consider:

  • Assess the amount of time spent on bookkeeping tasks.
  • Identify which tasks are taking up the most time.
  • Determine if you’re able to effectively respond to customer inquiries while managing bookkeeping tasks.
  • Evaluate if you have the expertise to handle financing tasks, such as managing accounts receivable and payable.
  • Consider whether you have enough time to monitor sales and day-to-day finances to ensure accurate records.

2. When Bookkeeping Errors Become Frequent

When bookkeeping errors become frequent, it may be time for a business to consider hiring a professional bookkeeper. Bookkeeping errors can lead to financial inaccuracies, which can have profound consequences for the business.

A professional bookkeeper can help identify and correct these errors, ensuring that the financial records are accurate and reliable. They have the expertise to manage different accounts, handle money management effectively, and provide advice on improving financial processes.

3. When a Business is Growing Rapidly

When a business is experiencing rapid growth, it may be time to consider hiring a professional bookkeeper to handle the increasing financial administrative tasks. Hiring a professional bookkeeper during rapid growth can provide the expertise and support needed to manage your financial administrative tasks effectively, allowing you to focus on other aspects of your business. Consider consulting with financial professionals or adding a dedicated finance team member to your organization.

4. When a Business Needs Financial Advice

When a business needs financial advice, hiring a professional bookkeeper can provide valuable expertise in areas such as financial forecasts, tax preparation, and financial planning. Here are steps to consider when seeking financial advice from a bookkeeper:

  • Determine your business’s specific financial needs and goals.
  • Research and compare bookkeeping services that offer financial advisory services.
  • Check for qualifications and experience in providing financial advice from a financial professional.
  • Read reviews and ask for referrals from other businesses who have utilized their financial advisory services.
What Are the Benefits of Hiring a Professional Bookkeeper?

What Are the Benefits of Hiring a Professional Bookkeeper?

As a business owner, it can be tempting to handle all aspects of your company, including bookkeeping, on your own. However, there are many benefits to hiring a professional bookkeeper that can greatly improve the efficiency and success of your business.

1. Saves Time and Resources

Hiring a professional bookkeeper can save businesses valuable time and resources. Here are some steps to finding the right bookkeeper for your business:

  • Determine your business’s bookkeeping needs and the level of support required.
  • Research and compare bookkeeping services, considering their expertise, reputation, and pricing.
  • Check for qualifications and experience, ensuring they have the necessary skills and knowledge to save money on potential mistakes or inefficiencies.
  • Read reviews and ask for referrals to gauge customer satisfaction and reliability.

By outsourcing bookkeeping tasks, businesses can save time that can be allocated to other essential activities and also potentially reduce costs associated with mistakes or inefficiencies.

2. Reduces the Risk of Errors

Regular and thorough bookkeeping significantly reduces the risk of errors in a business’s financial records. By meticulously tracking and recording every financial transaction, and routinely reconciling these records with bank statements, bookkeepers help ensure accuracy and consistency. This careful attention to detail minimizes the chances of mistakes that could lead to financial discrepancies, regulatory issues, or incorrect financial reporting, ultimately supporting the overall financial health and compliance of the business.

Pro-tip: Consider outsourcing bookkeeping services to a professional firm if hiring an in-house bookkeeper is a steep financial investment for a medium-sized business.

3. Provides Expert Financial Advice

A professional bookkeeper provides expert financial advice to businesses, helping them make informed decisions about their finances. They can analyze financial data, identify trends, and provide insights on improving profitability and cash flow. With their expertise, they can recommend cost-saving measures, tax planning strategies, and effective budgeting techniques.

Hiring a professional bookkeeper ensures that businesses have access to accurate and up-to-date financial information, which is crucial for making sound business decisions.

4. Allows Business Owners to Focus on Other Aspects of the Business

Outsourcing bookkeeping tasks to a professional third-party provider allows business owners to allocate their time and attention to other critical aspects of the business. Here are the steps to finding the right bookkeeper for your small or midsize business:

  • Assess your business’s bookkeeping needs, such as the volume of transactions and specific reporting requirements.
  • Research and compare different bookkeeping services, considering factors like cost, expertise, and the ability to meet your business’s unique needs.
  • Check for qualifications and experience, ensuring the bookkeeper has the necessary knowledge and skills to handle your financial records.
  • Read reviews and ask for referrals from trusted sources to gauge the bookkeeper’s reputation and level of satisfaction from previous clients.

A survey highlighted that, on average, companies’ profits increased by 16% after hiring bookkeepers. This improvement is attributed to bookkeepers’ ability to efficiently manage bookwork, allowing business owners to focus on other profit-enhancing areas of their business​

How to Find the Right Bookkeeper for Your Business?

As a business owner, it can be overwhelming to handle all aspects of your business, including bookkeeping. However, hiring a professional bookkeeper can alleviate this burden and ensure accurate financial records for your business. But how do you find the right bookkeeper for your specific needs? Finding the right bookkeeper for your business involves a thoughtful process. In this section, we will discuss the key factors to consider when searching for a bookkeeper.

1. Determine Your Business’s Bookkeeping Needs

Determining your business’s bookkeeping needs is crucial for efficient financial management. Here are the steps to follow:

  • Assess the size and complexity of your business: Determine if you have a small, medium, or large-scale operation with various financial transactions.
  • Identify your industry requirements: Certain industries may have specific regulations or reporting standards that require specialized bookkeeping knowledge.
  • Analyze your financial tasks: Evaluate the complexity of your financial tasks, such as invoicing, payroll, and tax preparation, to determine the level of expertise needed.
  • Consider your budget: Compare the benefits of hiring an in-house bookkeeper versus outsourcing to a professional service, taking into account the cost-effectiveness and hourly rates.

2. Research and Compare Bookkeeping Services

Researching and comparing bookkeeping services is crucial to find the right fit for your business. Here are the steps to guide you:

  • Determine your specific bookkeeping needs, such as the size of your business and the level of financial complexity.
  • Conduct thorough research to identify potential bookkeeping service providers.
  • Compare the services offered by each provider, including the software they use, their experience, and the pricing structure.
  • Check for qualifications and experience, ensuring they have the necessary certifications and expertise in your industry.

3. Check for Qualifications and Experience

  • Determine the necessary qualifications and experience required for your specific bookkeeping needs, including expertise in money management.
  • Research and compare bookkeeping services to find professionals with the right qualifications and experience.
  • Check for certifications or professional affiliations, such as being a Certified Public Accountant (CPA) or a member of a recognized accounting association, with a focus on money management.
  • Verify the experience of the bookkeeper by reviewing their previous work or asking for references, specifically in relation to money management.

Pro-tip: When checking for qualifications and experience, consider hiring a bookkeeper who has experience in your industry and with money management. They will have a better understanding of the unique financial aspects and money management practices relevant to your business.

4. Read Reviews and Ask for Referrals

  • Read reviews from other businesses and individuals who have worked with bookkeepers, including large enterprises.
  • Ask for referrals from trusted colleagues, friends, or industry associations, including large enterprises.
  • Consider the qualifications and experience of the bookkeeper, ensuring they have the necessary skills for your business, whether it is a small business or large enterprise.
  • Look for bookkeepers who specialize in your industry or have experience working with businesses of equivalent size, including large enterprises.

Hiring a bookkeeper can save time and provide independent financial expertise, benefiting both small businesses and large enterprises.

Don’t Let Financial Mismanagement Sink Your Hard Work. Choose Papillon House for Hassle Free Bookkeeping Services!

Is your financial paperwork stealing the spotlight from your business growth? It’s time to switch the narrative with Papillon House. Specializing in bookkeeping for law firms, architects, construction, and small businesses, we’re not just about numbers; we’re about bringing clarity to your financial chaos.

Don’t let your business’s financial story be a tale of ‘what ifs’. Partner with Papillon House, where financial accuracy meets efficiency. Let’s turn your financial worries into your business’s success story. Contact us today for financial freedom.



When should small business owners consider hiring a professional bookkeeper?

Small business owners should consider hiring a professional bookkeeper when they find themselves overwhelmed with financial tasks such as handling day-to-day finances, following up on payments, and running payroll. These tasks can take up a lot of time and outsourcing them to a bookkeeper can save time and ensure accuracy.

How can a bookkeeper help small business owners with handling tasks?

A bookkeeper can help small business owners by handling tasks such as monitoring cash flow, organizing books, and sending billing reminders. This can free up the business owner’s time and allow them to focus on other important aspects of their business.

What are the pros and cons of hiring a bookkeeper for small business owners?

The pros of hiring a bookkeeper for small business owners include saving time and ensuring accurate finances. The cons may include the cost of hiring an in-house bookkeeper or outsourcing to a third party. It is important for business owners to weigh the benefits and costs before making a decision.

What types of bookkeeping options are available for small and midsize businesses?

Small and midsize businesses have a few options for bookkeeping, including hiring an in-house bookkeeper, hiring a freelancer, or outsourcing to a third-party agency. Each option has its own benefits and costs, so it is important to carefully consider which is the best fit for the business.

What factors should be considered when choosing a bookkeeper?

When choosing a bookkeeper, it is important to consider factors such as their expertise and certifications, their pricing, and their communication and collaboration methods. Business owners should also clearly outline the scope of work and budget to ensure a good fit with the bookkeeper.

What are some popular bookkeeping and accounting programs for small businesses?

Some popular bookkeeping and accounting programs for small businesses include QuickBooks Live Bookkeeping, FreshBooks, Zoho Books, Xero, and Kashoo. Each program offers distinctive features and pricing options, so it is important to research and choose the best fit for the business’s needs.

Morgan is the Director at Papillon House Bookkeeping, a Tampa, Florida-based firm that specializes in bookkeeping services for law offices, architects, and the construction industry. With over three years of experience in her current role, she aids her clients in meticulously organizing their financials. Morgan's dedication and expertise extend beyond the realm of accounting, allowing her to provide comprehensive financial management solutions. She also engages with her audience through live discussions on the Papillon House Bookkeeping Facebook group page.