What’s Better for my Business? Business owners often come to the incorrect conclusion that hiring a bookkeeper as an employee is the best use of their organization’s money. In most cases bookkeeping is only a small part of an organization’s day to day administration; hiring an employee is not required. A business can hire a professional bookkeeper for a few hours a week or month to address the organization’s bookkeeping needs.
When deciding what is better for your business, ask yourself if consolidation of daily tasks is the answer. Do you want your in-house bookkeeper answering the phones, assisting clients, or doing HR all day ON TOP of the bookkeeping? Probably not! When it comes to the company books you will need a specialist who can sit and pay attention to detail. Bookkeeping is not a task that is done well while answering the phone.
First, a professional bookkeeper tends to be paid more than a receptionist or an administrative assistant. If the organization is paying a receptionist to do the bookkeeping then there is likely a question of competency. If the organization is paying a professional bookkeeper to do a receptionist’s work then the organization is paying too much.
Second, hiring a single individual to address the organization’s bookkeeping and administrative responsibilities increases the risk of fraud. Risk is much lower when the bookkeeping duties are segregated between a professional bookkeeper and another individual.
Things to consider:
That means that they will be there when you need something from them. There is often turn over at small companies and if your bookkeeper leaves then this can put you in a bad position. Often times the knowledge of how to take care of the books walks out of the door with the employee.
What is best for your business? From the standpoint of dollars spent, risk to you and your business, and over-all quality of work done an outside service will make a lot of sense.
MARK A KNIGHT, CPA