Why Hiring a Bookkeeper Can Save You Money 

Why Hiring a Bookkeeper Can Save You Money 

In the last part of this series, we looked at when it makes sense to hire a bookkeeper. Once your business grows beyond that point, the next question is whether hiring one is worth the cost. In many cases, the answer comes down to how much those bookkeeping mistakes could end up costing your business. 

Growing Businesses Face Bigger Risks 

Once your business earns more than about $150,000, especially if you have employees, bookkeeping mistakes become much more expensive. Missing a source deduction payment, filing your GST late, or claiming expenses incorrectly can end up costing more than the bookkeeping itself. That’s one of the reasons we see such a high client retention rate. Once businesses reach this stage, the cost of those mistakes is often higher than the cost of hiring a bookkeeper. 

Why Doing It Yourself Can Cost More 

Some incorporated companies try to handle their bookkeeping themselves. By year-end, their CPA has to go back through the records, correct mistakes, and make sure the financial statements are accurate. That extra work can become expensive because the accountant is fixing bookkeeping that could have been done correctly throughout the year. 

The Value of Monthly Bookkeeping 

Working with a bookkeeper throughout the year helps you stay on top of your filings, gives you access to current financial reports, and prepares everything your year-end accountant needs. Instead of paying more at year-end to correct mistakes, your financial records stay organized month after month. 

What’s Next? 

Hire a bookkeeper when they’re saving you more than they’re costing you. Once you’ve reached that stage, the next step is finding the right one. In the next part of this series, we’ll look at what makes a good bookkeeper, what makes a bad one, and what to watch for when you’re hiring. 

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation. 
 

In the last part of this series, we looked at when it makes sense to hire a bookkeeper. Once your business grows beyond that point, the next question is whether hiring one is worth the cost. In many cases, the answer comes down to how much those bookkeeping mistakes could end up costing your business. 

Growing Businesses Face Bigger Risks 

Once your business earns more than about $150,000, especially if you have employees, bookkeeping mistakes become much more expensive. Missing a source deduction payment, filing your GST late, or claiming expenses incorrectly can end up costing more than the bookkeeping itself. That’s one of the reasons we see such a high client retention rate. Once businesses reach this stage, the cost of those mistakes is often higher than the cost of hiring a bookkeeper. 

Why Doing It Yourself Can Cost More 

Some incorporated companies try to handle their bookkeeping themselves. By year-end, their CPA has to go back through the records, correct mistakes, and make sure the financial statements are accurate. That extra work can become expensive because the accountant is fixing bookkeeping that could have been done correctly throughout the year. 

The Value of Monthly Bookkeeping 

Working with a bookkeeper throughout the year helps you stay on top of your filings, gives you access to current financial reports, and prepares everything your year-end accountant needs. Instead of paying more at year-end to correct mistakes, your financial records stay organized month after month. 

What’s Next? 

Hire a bookkeeper when they’re saving you more than they’re costing you. Once you’ve reached that stage, the next step is finding the right one. In the next part of this series, we’ll look at what makes a good bookkeeper, what makes a bad one, and what to watch for when you’re hiring. 

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.