Why You Need To Find & Hire a BOOKKEEPER (How To Do It)

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Welcome to the ten minute MBA, I'm yourhost got de Clary on the ten minute NBA. I unpack business tips, trickstrategies, insights that you can use a start scale or grow your business.Today, I'm going to be speaking to you about bookkeeping and, more importantly,why you shouldn't be working in the business while you should be working onthe business, the importance of bookkeeping, but also how to findsomebody to help you actually do the bookkeeping. So, let's first definesome terms. So bookkeeping is a vital component of anybusiness and getting it right from the very beginning will prevent problems inthe future. You should organize your book keeping as soon as you can tomaximize efficiency and give your business an organizational boost.Bookkeeping is different than accounting, and the first thing tounderstand is that if you are going to do your own bookkeeping, which I'mgoing to make the argument that you shouldn't be doing your own bookkeeping.But if you are going to be doing your...

...own bookkeeping, you do have tounderstand that it is different than accounting and, if you're unfamiliar asto what the differences are, don't think that you're alone many seasonedentrepreneurs would struggle to put the distinction between them into words. Sobefore we actually talked about how bookkeeping work is important to knowwhat bookkeeping actually is so bookkeeping is the process of recordingdaily transactions and organizing financial documents, accounting usesthe data that you take from bookkeeping and and meticulously kept bookkeepingrecords to make sense of a company's finances and progress simply put abookkeeper tracks finances and an accountant analyzes them. It soundseasy, but it really requires a lot of attention to detail and time book.Keeping is definitely less daunting. When you know it doesn't require thesame mathematic or scrutiny that you would have to apply if you were doingall of your own accounting, but it...

...still requires you to think about itand, of course, there's various levels of bookkeeping right. If you're runninga brick and mortar, then there's going to be a lot more bookkeeping than ifyou are selling something on Shoppie, where a lot of your transactions arerecorded automatically, but there are three main things that you need to do.If you are doing your bookkeeping so number one, you have to keep track ofyour finances. Number two. You have to organize your accounts and number three.You have to regularly reconcile your books. So, let's start with number onekeeping track of your finances. When your book keeping for Your Business,you can break down your finances into four categories: profits, expenses,inventory cycle and liabilities. Profits can be divided in the cast orcredit sales. Depending on whether the customer pays you at the time ofpurchase or when you send them, the invoice for the bill. Expenses can bedivided into recurring or non recurring. Expenses. Non Recurring. Expenses areusually one off unexpected payments, whereas recurring expenses would coveritems such as bills. If Your Business sells a product, your inventory cycle,sho, catalog, product purchases and...

...sales, allowing you to see how muchinventor you have at all times, Liabilities are outstanding balances.Your company owes, as opposed to the expenses that are incurred by runningof the running of the business such as buying inventory or paying employees.Liabilities are separate to expenses and should be organized and recordedand tracked accordingly. The second thing you have to make sure of is toorganize your account, so having properly organized accounts will makeaccounting easier and bookkeeping easier and Delio to quickly and easilylook over your finances at any time. If you're unsure how to organize youraccounts- or you won't be handling me. Accounting yourself take take some timeand speak to your accountant about what they need from you as the company'sbookkeeper that will help them do their job properly, as a general rule tofollow when organizing your books divide everything into the followingcategories: assets, liabilities, income, expenses and equity. These categorieswill cover what the company owns and owes, as well as the money going in andout of the business. By dividing your...

...books like this, you and youraccountant will be able to find the appropriate documents in record timewhenever you have to find them, and the third thing is to regularly reconcileyour books. How often you close and reconcile your books is a decision thatyou will make with your accountant. An accounting period can be a month. Itcan be a quarter. It can be a year depending on what works best for yourorganization. When each accounting period ends, you will need a completeseries of bookie bookkeeping tasks before the next period begins. Thesetasks include reconciling, which means checking that the company's Bank andcredit card statements match or books. A lot of these tasks are about makingsure that you can account for every cent that has gone in and out of yourcompany. By doing these tasks regularly, you will be able to claim and preparewhat you need to prepare when it's time to file your taxes, booke being issimply the Organization of your company's finances. The key did greatbookkeeping is regular, thorough analysis of your books. Bookkeepingshows you what is happening in your...

...company, so a good way to know that ifyou're doing things right is to ask yourself, can I track every scent ofthe company's Money Right now? When the answer is yes, your books will be agreat asset to you, your accountant and the future of Your Business. Now I wantto add on a little bit of insight for people that are looking to hire abookkeeper, and I would always recommend that as soon as you can, youhire an accountant to act as a bookkeeper. Usually, if you're justhiring an accountant to do your businesses taxes, it means you're,hiring them quarterly or to reconcile your books, or it could be once a yearand they're not on staff and they're not regularly working. And if you don'tneed to reconcile your expenses because, for example, they're all automaticallytracked, then maybe it makes more sense to just have an accountant for certainperiods in your business. But it also depends on the complexity of yourbusiness, but regardless. I know that the sooner that entrepreneurs that I'veworked with get rid of that accounting. Headache, the sooner they can focus onworking on the business versus working...

...in the business, so it makes sense whypeople obviously don't hire a bookkeeper right away when you'restarting a new business. You are trying to keep cost down wherever you can sohiring somebody to do something you could do yourself may seem counterintuitive, but a bookkeeper may actually save you time and money.You'll have more time to spend on building Your Business and followingyour passion and save money by having a professional organize your financesfrom day one. So when considering someone as your company's bookkeeper,this is what you should keep in mind. If you are willing to hire, which Ireally do believe you should. What kind of business do I run and does mybookkeeper understand how books for this company will be different tobusinesses and other industries? What bookkeeping software does my bookkeeperrecommend, and why is my business large enough to require a full timebookkeeper or would a part time bookkeeper be better asking a candidateas well as yourself. These questions will allow you to see what this personwould prioritize when working for you. If these priorities align with yours,then they could be a good fit for your business when hiring a bookkeeper.Don't limit yourself to a person in...

...your office space. We spoke about freelancing before and how to find good freelances. There are so many goodbookkeeping options now so don't be afraid to explore them bookkeepingfirms remote workers are viable alternatives to a full time in officeemployee, and even if you are considering them, a littleinvestigating might lead you to find some incredible talent. As long as aperson you hire has the right qualifications. The way you hire themdoesn't matter where you hire them from. Does it matter where they're doing thework from does not matter? What I would recommend you do is if you want to doyour own booking bookkeeping day, one spend some time at least learning froma professional on how to do it, so that you don't screw it up, because if youdo screw it up from day one, it's just a headache. It's not going to be theend of the world, but it is just a headache to go back and fix your booksso higher a professional learn from that professional take over when youfeel confident, but I would highly recommend that, as you scale yourbusiness, you should start to think about getting rid of some of this hadMineah and some of this busy work so that you can really focus on drivingyour company forward and championing...

...the Vision for your company, which isentirely up to you as a founder or as an entrepreneur anyways. I hope thathelp. Remember any business questions you have. Don't worry. I got you. Thishas been another ten minute MBA, it's all for today, I'll see you tomorrowfor a.

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