I found this BLOG on another site and its all very correct! Read below, the original link is at the bottom.
There are a number of reasons why businesses can go out of business, however, bad money management remains #1! Often times in the beginning of starting up a business or as a business experiences substantial or sporadic growth, it can be hard to manage, budget and spend money the correct way (yes, there is a correct way to spend your company’s money!). Expenses may be overspent and income not correctly allocated as a business experiences increased cash flow. After all, the more money people make, the more money people tend to spend and over an extended period of time this means trouble for your business.
Remember, cash flow and income are two different things and if you aren’t regularly tracking your income and expenses properly you run the risk of overspending, making mistakes and crashing your business.
BUT don’t fret yet! This is where a bookkeeper/accountant comes in handy. Here are several ways that hiring a bookkeeper can actually save you money and prevent a crash and burn from happening:
Second set of Eyes & Accountability, Tracking. A Bookkeeper looks at your income and expenses, generally on a monthly basis. This provides a way for you to know what your net profit or loss is, what your cash flow is, and what makes up your income and expenses. Over a period of time, your bookkeeper will be able to also analyze these costs, be a second set of eyes and help to keep your budget up-to-date and accountable. All the while taking the pressure off of you, the owner, to keep track of all of this while still running a business. There’s only so much time and energy in a day.
Preventing Avoidable Errors. If you have already started tracking income/expenses yourself or having your secretary do it, it may be good to ask yourself, Am I/they doing this correctly? As Entrepreneurs, we tend to want to wear all the hats but often we can’t. Trying to do your own bookkeeping (or having an inexperienced assistant do it) may save you money in the present, but over time, doing it inaccurately can cost you thousands to correct. Why not do it the right way from the start? Hire a bookkeeper/accountant, but be careful who you hire. Some are not as experienced or as invested into your company as they may need to be.
Avoid Payroll Mistakes. Payroll is a huge money guzzler in general. Don’t run the risk of doing it incorrectly and wind up paying huge penalties. Payroll companies can seem costly but most back up their work with money guarantees. In case something happens, outsourcing may save you thousands of dollars and a whole lot of stress.
Paying your bills on time. Often times, outsourced bookkeepers also offer bill pay or invoicing options. If you struggle with keeping up on all of your bills, it may save you hundreds of dollars a year in late payments if you hire a bookkeeper. Or if you want one less thing to worry about, you can save “time-money” by not having to keep up with your money/cash flow. There are many options to ensure that a system of “checks and balances” is still in place if you decide to go this route. How much is your time worth? It may be worth the investment of an outsourced service.
No Employee Costs. Outsourcing a bookkeeper instead of hiring one as an employee can save you some money as well. Hiring a contract bookkeeper keeps you from having to pay employer taxes, overhead and supplies. Often you will find that outsourcing fees are significantly lower than hiring another employee.
Are you interested in saving money? Tired or overwhelmed by tracking your own income/expenses? Worried or paranoid that you may not be meeting regulations for documentation and record keeping? Guilty because you have no idea how much you’re making or if you are on the road to a crash and burn? Then you need to contact me today. We are Accounting Fit for You! Hiring us takes the stress out of your financials and because we consider you part of our company we work hard to make sure you have the tools your business needs to continue to grow and succeed.
Original Writer and Link Credit: https://www.linkedin.com/pulse/why-hiring-bookkeeper-saves-you-money-megan-mccray