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When to Hire a Bookkeeper or Accountant
Answering these questions might help you to decide it is time to at least hire a bookkeeper or accountant.
How much time do you have in daily business operations to actually do all the things an accountant could do for you?
If you are spending a better part of the day doing the day to day creating invoices, following up on invoices and paying bills it might be time to hire a bookkeeper. By utilizing a bookkeeper a couple hours a week or a month this would free up time to focus on the core business.
How much time do you have to try and learn all the things that accountants already know?
An account can produce financial documents such as cash flow statements, profit and loss statements and balance sheets. Lenders typically require a financial statement review in order to accurately review and process a business loan request.
When to hire full time accountant or bookkeeper?
If you are calling your accountant often and wish he was in the office all the time it might be time to hire a staff accountant.
If your part timer is spending two to three days a week invoicing and paying bills but yet still falls behind, it might be time to hire a full time bookkeeper.
Know the difference between a bookkeeper, accountant and a CPA.
A bookkeeper does the does the day-to-day hands-on tasks submitting invoices (promptly) and following up on them, and paying the bills. The bookkeeper also tracks company expenses and can assure that every cost has been entered — and recorded correctly.
An accountant is a degreed professional who specializes in specific areas concerning finances, taxes, budgets, business operations, business equity, business management, money management, and so much more.
A certified public accountant (CPA) is an accounting professional who has a college degree, has passed a professional exam, and has met state licensing requirements.
The main difference between a regular degreed accountant and a CPA is that the CPA can perform financial statement audits and certify financial statements.