Bookkeeping is a critical aspect of running a successful business that most people don’t initially think about when starting a business. Many entrepreneurs face the dilemma of whether to manage their own books themselves by using a service, like QuickBooks, or to hire a professional bookkeeper to manage their books.
DeMera DeMera Cameron is a Fresno-based accounting firm known for its comprehensive financial services and deep understanding of the Central Valley market. With over 80 years of experience, we have established a legacy of being trusted advisors in numerous areas, such as auditing, tax planning, and asset protection. When it comes to bookkeeping, we offer compelling reasons why hiring a professional bookkeeper is a smarter choice than managing your own books:
Understanding the Role of a Professional Bookkeeper
Bookkeeping is the process of keeping track of a business’s financial transactions, but it goes beyond that. Professional bookkeepers, not to be confused with accountants, are responsible for more administrative tasks, such as completing payroll, recording incoming and outgoing expenses, maintaining accurate financial records, managing accounts payable and receivable, reconciling bank statements, and preparing financial reports. They ensure that all financial transactions are accurately recorded to keep the business’s financial health afloat, whereas an accountant assesses the business’s overall financial health to assist with audits, tax preparation, and more.
Professional bookkeepers typically have extensive training and certifications, such as a Certified Bookkeeper (CB) designation or a degree in accounting. Their expertise ensures that your financial records are managed with precision and adherence to accounting standards. We have numerous certified bookkeepers on staff at our Fresno office.
The Limitations of DIY QuickBooks
Managing QuickBooks on your own can be incredibly time-consuming. The time spent on bookkeeping tasks can take away from core business activities, such as sales, marketing, operations, and customer service. This can hinder business growth and efficiency. DIY QuickBooks can lead to mistakes, such as incorrect data entries or misclassification of expenses. These errors can have serious consequences, including tax penalties and inaccurate financial reporting when submitted to the IRS. The risk of errors increases if you are not well-versed in bookkeeping principles.
Additionally, QuickBooks has a steep learning curve, and staying updated with software changes and new features can be challenging. Mastering QuickBooks requires time and effort, which can be better spent on growing your business. A new feature, QuickBooks Live, assigns you a bookkeeper to “clean-up” your books and assist you to a certain extent. However, the site will not:
- Provide financial advice or guidance
- Provide tax advice
- Facilitate the filing of income or sales tax returns
- Create or send 1099s
- Manage payroll because it is an add-on feature
Hiring a bookkeeper or CPA for your Central Valley business eliminates these limitations with their greatest strengths being advising and one-on-one assistance.
Benefits of Hiring a Professional Bookkeeper
A professional bookkeeper’s main concern is to ensure that your financial records are accurate and compliant with tax laws and regulations. Their expertise reduces the risk of errors and helps you avoid potential penalties for non-compliance. Outsourcing bookkeeping allows you to focus on core business activities and growth. Professional bookkeepers handle time-consuming tasks, freeing up your time to concentrate on what you do best.
Professional bookkeepers provide valuable financial analysis and advice. They generate detailed financial reports that offer insights into your business’s financial health, helping you make informed decisions for the finances of your business. If you have a business in the Central Valley, hiring a professional bookkeeper that is local to you and that you can meet face-to-face will bring you peace of mind. This will reduce unwanted stress, knowing that your business ventures are in expert hands and will allow you to focus on running your business without worrying about bookkeeping tasks or legal repercussions.
Cost Considerations
One of the main reasons people consider doing their own bookkeeping is to save money. While hiring a professional bookkeeper may seem like an added expense, it can be cost-effective in the long run. The upfront costs are often outweighed by the long-term savings from avoiding errors, penalties, missed opportunities, and time spent learning how to manage your own bookkeeping. A professional bookkeeper’s expertise ensures that your financial records are accurate and that you are making the most of your financial resources. On average, businesses report at 16% increase in profits after hiring a bookkeeper.
When is it Time to Hire a Bookkeeper?
If your business has multiple monthly expenses, your business is not a start-up, or your business revenue is over $500k, it is recommended you hire a professional bookkeeper because it offers numerous advantages over managing your own QuickBooks. From saving time and ensuring accuracy to gaining financial insights and staying compliant with tax laws, a professional bookkeeper can be a valuable asset to your business.
Invest in professional bookkeeping services, such as the ones we offer at Demera Demera Cameron, to help your Central Valley business flourish. In the Fresno and Clovis area, we have immense expertise in QuickBooks payroll services and professional bookkeeping, ensuring that your financial management is in capable hands. Our licensed CPAs provide comprehensive support, making us an ideal choice for Central Valley business owners seeking reliable financial guidance.
Ready to take your bookkeeping to the next level? Contact Demera Demera Cameron today for a consultation and see how our professional bookkeeping services can benefit your business.
