Is hiring a bookkeeper cost effective?

Is hiring a bookkeeper cost effective? Let’s dive in and check it out!

You have 3 options: outsourcing to a bookkeeping firm, hiring an in-house bookkeeper, or sticking to the DIY route.

  1. Doing it yourself might seem like the most budget-friendly choice since you’re doing the legwork, but it might not be the most efficient. However, this approach may not be the most efficient use of your time, especially if you lack accounting principles and bookkeeping software expertise. Spending countless hours managing financial records can distract you from focusing on core business activities that drive growth and profitability.
  2. Hiring an in-house bookkeeper may seem most convenient, but it can be costly.  Apart from the bookkeeper’s salary, you’ll likely need to provide them with equipment, training, and employee benefits such as healthcare and retirement plans. Additionally, if your business experiences fluctuations in bookkeeping requirements, such as during tax season, you may have to deal with idle time or hire additional staff to handle the workload.
  3. Outsourcing your bookkeeping to a pro firm can save you moolah on hiring, training, and employee benefits. By partnering with a bookkeeping firm, you gain access to a team of experts equipped with the latest technology and knowledge to streamline your bookkeeping processes. These professionals specialize in handling financial records, staying updated on changing regulations, and ensuring accuracy and compliance. Moreover, outsourcing provides scalability, allowing you to adjust the level of service based on your business’s needs, without worrying about managing and training employees.

Ultimately, the decision on whether to hire a bookkeeper or outsource depends on your business’s unique needs and financial situation. If you have a small business with simple bookkeeping requirements, managing it yourself may still be a viable option. However, as your business grows and becomes more complex, outsourcing can provide significant benefits in terms of cost savings, expertise, and time efficiency.

At TeamBookkeeping, we understand the challenges businesses face when it comes to bookkeeping. We can help you evaluate your options and determine the best course of action based on your specific circumstances. Our bookkeeping services offer professional expertise and utilize the latest technology to streamline your financial processes. Reach out today to learn more about our awesome bookkeeping services!

Want to learn more about doing your own books? Check out this blog article about our favorite accounting software – https://www.teambookkeeping.co.nz/best-accounting-software-for-your-business/