When to Hire a Bookkeeper & Other Tips

Say you’re running a startup gearing up to launch a new product. You’re juggling team meetings with getting expert consultations and seeking funding from investors. But how can you get the funding you need when your finances aren’t up-to-date? Is it time to ask for help and hire a bookkeeper or outsource bookkeeping services?

Today, let’s talk about when to hire a bookkeeper, explore the significance of a bookkeeper’s role and pinpoint the questions to ask when hiring a bookkeeper.

But First, What Does a Bookkeeper Do?

The role of a bookkeeper involves keeping meticulous records of daily transactions to ensure financial accuracy, which is essential for the smooth operation and financial health of any company, including small businesses in Australia.

From managing accounts payable and receivable, reconciling accounts, processing payments, issuing invoices, and generating financial statements, bookkeepers organise and record financial transactions to provide business owners with a clear understanding of their financial position. With such insights, startup owners can be better at decision-making, including when to get investors on board. Well-tracked financials also ensure compliance with relevant regulations.

What Are the Benefits of Hiring a Bookkeeper for a Small Business?

You might think a small business doesn’t need a bookkeeper, but this couldn’t be further from the truth. Hiring a bookkeeper for your startup company or small local business can help make your financial management more efficient. Bookkeepers have a deep understanding of accounting principles and regulations, ensuring your financial records are always accurate and up-to-date. They can help identify and address cash flow issues while helping your growing company ensure compliance with federal law, making tax season smoother and less stressful. Simply put, hiring them can save you money in the long run by avoiding costly mistakes and penalties.

Moreover, delegating bookkeeping tasks to a professional allows you to focus on core business activities. You will gain more valuable time for growth and development. That’s especially beneficial when your startup is already beginning to scale. A bookkeeper can handle increased financial needs. More importantly, knowing that your financial records are in good hands can give you peace of mind.

Signs Your Startup Is Ready to Hire a Bookkeeper

Now that you know that bookkeepers bring nothing but positive impacts to your startup or small company, it’s time to pinpoint when you should exactly have one on board. Here are some signs your startup is ready to hire a bookkeeper:

More sales and an increase in monthly revenues

Have you noticed a spike in revenue and sales? Consider hiring a bookkeeper. You need to keep your accounting records up-to-date as you sell more products and grow your business. Bookkeepers will record each transaction promptly. That way, you can see clearly which products or services bring in the most money.

Financial transactions increase in numbers and become more complicated.

As your business expands, the number and complexity of financial transactions increase. You are likely to have more products to sell and more vendors & invoices to deal with—you may need bookkeepers to manage the workload effectively.

Your startup company needs financial reporting and insights.

Do you want to identify opportunities to optimise expenses, reduce overhead costs and leverage tax deductions? It’s time to hire a bookkeeper to manage your books.

You experience time constraints in terms of managing your finances.

If you’re running out of time handling bookkeeping tasks yourself, this is exactly when to hire a bookkeeper. Doing all the bookkeeping tasks by yourself can be time-consuming, taking away valuable hours that could be dedicated to strategic planning, refining your marketing efforts & performing other core business activities.

Keep These in Mind When Hiring a Bookkeeper

Ready to hire a bookkeeper for your small yet growing company in Australia? Here are the qualifications you should look for to ensure you’re hiring a suitable one:

Education: A degree or certification in accounting, finance, or a related field demonstrates a solid foundation in understanding financial principles.
Experience: Seek candidates with a proven history of handling finances in your industry, as they bring valuable insights and are likely to be better equipped to manage industry-specific challenges.
Software Proficiency: Ensure the candidate is familiar with the accounting software your business uses or plans to use, such as Xero.
Attention to Detail: A reliable bookkeeper has a keen eye for detail to ensure accuracy in financial records and effective financial management.
Communication Skills: Effective communication is vital for a bookkeeper to explain complex financial information in a digestible way for non-financially savvy stakeholders.
Responsiveness: A bookkeeper should have a proactive approach to timely and effective communication, ensuring smooth financial operations and fast decision-making.
References and Reviews: Spend ample time checking references and reviews to learn about the bookkeeper’s reliability and work performance.

Here are some questions to ask when hiring a bookkeeper in Australia:

Do you have any relevant accounting degrees and/or certifications?
How long have you been working as a bookkeeper?
Can you describe your bookkeeping experience with past clients? Which specific tasks do you handle for them?
What accounting software have you used? Which is your favourite?
Do you usually manage payroll? Do you have a preferred software for this?
Can you walk me through your process for creating a financial report? How often do you complete reports? What are your primary responsibilities?
How do you stay organised? What are some of your top organisation and time-management strategies?
What would you do if you saw a discrepancy? Will you investigate it further?
Why are you the right person for the job?

How About Hiring Bookkeeping Services?

Other than hiring an in-house bookkeeper, you should consider outsourcing or acquiring bookkeeping services from a trusted financial company. You can save on the costs associated with hiring, training, and maintaining an in-house bookkeeping staff. You gain access to a team of professionals who are up-to-date with the latest financial regulations and accounting technologies. Additionally, most bookkeeping companies offer the flexibility to scale services up or down based on business needs, allowing for more efficient resource management. With this approach, you can free up your time and that of your in-house team to concentrate on other core business initiatives rather than getting bogged down in day-to-day financial record-keeping. This flexibility is especially useful during peak times such as the holiday season, when the demand on your business might fluctuate.

Consider G.M. Egan Co.’s Complete Bookkeeping Services Today

At G.M. Egan Co., our complete bookkeeping services are tailored, flexible, and cost-effective, designed to meet the unique requirements of your startup business.

Our services include day-to-day bookkeeping, bank reconciliation, accounts payable and receivable, timely reporting and strategic debt management. We focus on ensuring accuracy and helping maintain your financial records to facilitate smooth cash flow and empower you to make critical business decisions confidently.

Moreover, our commitment to transparency, with fixed fees for all services and proactive communication about any changes, provides peace of mind for small businesses in Australia. This approach ensures no financial surprises, allowing you to focus on what truly matters—taking your business to new heights.