I say it all the time, 99% of business owners did not get into business to do bookkeeping, you got into business to sell your products and services. Bookkeeping is usually the first task to get pushed down your to-do list and the task that gives you the most headaches. Which means, it is the first task that should be outsourced.
But it shouldn’t be outsourced to anyone, the bookkeeper you hire should be experienced and you should understand the fundamentals of bookkeeping. A good bookkeeper will help you understand your financial statements but before you hire you probably have a few questions (or hesitations) about how bookkeeping works, how to find a great bookkeeper and where to even start the process. Let’s break down the top 5 myths of outsourcing bookkeeping.
Myth #1: A Business Owner Should Do Their Own Bookkeeping
True…and false…A business owner will probably start by doing their own bookkeeping but if you don’t complete your bookkeeping according to standardized accounting practices’ and don’t know how to read the financial statements, you should hand it off immediately. Most business owners who engage us to do their bookkeeping usually have the same story: They are spending evenings catching up on receipts, categorizing expenses wrong and spending thousands more on an accountant who has to tidy up at year-end.
If you are not making mistakes and understand how to read the financial statements, great, but your time is still better spent elsewhere doing high-level tasks that grow your business. Your bookkeeping can be done by a professional who checks in to ensure you are sending the documents they need so that when it comes time for you to meet with them to review the statements, they are accurately prepared.
Truth #1: A Business Owner does not need to do their own bookkeeping, however, they do need to hire someone qualified and understand how to read the financial statements.
Myth #2: My Accountant Can Do My Books
At a premium, absolutely they can! Accountant rates are at least double the price of a bookkeeper and many accountants hand-off the bookkeeping to a trained bookkeeper anyway but still charge the accountant rate. (Not so fun fact, many Accountants don’t know how to do bookkeeping.) As mentioned above, if you are using an Accountant to do your books, it is usually done at year-end which gives you 12 months without proper data on how your business is doing. If you prefer higher rates and no financial picture for 12 months, hire an Accountant instead of a Bookkeeper to do your books.
Truth #2: An Accountant can do your books at a much higher rate.
Myth #3: A Bookkeeper Isn’t Trustworthy with My Bank Accounts
No one should have direct access to your bank accounts unless you absolutely trust them and review bank statements separately on your own. A Bookkeeper should have access to your bank account but with limited permissions. By giving them limited permissions this protects both of you. If a Bookkeeper is eager to have your username and password without limited permissions, you should find another Bookkeeper.
To get around having complete access to your accounts, Bookkeepers will receive your financial statements through software like QuickBooks Online (QBO), Zoho or Sage. This is outside of having limited permissions, but using a proper software and giving your Bookkeeper limited permissions means less work for you.
Truth #3: A Bookkeeper doesn’t want or need full access to your bank account.
Myth #4: Virtual Bookkeepers are Less Experienced
True and false. This should be a concern for you so only hire a Bookkeeper with years of experience, comes with references and never sign a long-term contract. Go month to month and if you don’t like what they are doing or feel they don’t know what they are doing, remove their access and move on to someone else.
At VEA Office Professionals, our Bookkeepers have at least 5, but most have 10+ years of experience working with business owners. They have seen it all and are not afraid of messy books. Our team will have your books up to date with financial statements coming out every month, so you know exactly where your business stands financially. Our team is also located across North America, so they understand the expectations of the federal government when it comes to bookkeeping. Whether you need a Bookkeeper in Calgary, a Bookkeeper in Toronto or a Bookkeeper in New York, our team knows the ins and outs to keep you on track and within the laws.
Truth #4: The right Bookkeeper is experienced and will help you grow your business.
Myth #5: I Can’t Send My Receipts to an Outsourced Bookkeeper
With the software that we use, you never have to send a physical receipt to anyone ever again. Dext allows you to take a picture of receipts or forward email receipts or invoices. From there it syncs up to your bookkeeping software, meaning those shoe boxes full of receipts are great but basically obsolete. It also saves your Bookkeeper time from having to reconcile all your receipts, which saves you money.
Truth #5: You don’t need to send your receipts to your Bookkeeper.
Manager of Sales & Marketing