Hiring a bookkeeper can feel like an expensive decision as well as additional overhead you may not want to commit to. But hiring a bookkeeper to help with your day to day financial administration could be the perfect resource you need to not only free up your own time to sell more and manage your business, but also to provide you with real time financial information to help you make better business decisions which boost your profits. Here are 6 things a bookkeeper could do for you to boost your bottom line:
1. Cost Control
Your bookkeeper will be responsible for processing supplier invoices and expense claims. As they become familiar with your business they will be able to keep an eye on supplier invoices and expense claim forms acting as an additional checkpoint for your business costs. Checking your costs can result in direct savings and boost your bottom line profits.
2. Supplier Management
Your bookkeeper will collate all your supplier invoices and process them onto an accounting system. At the touch of a button they will be able to report to you on how much you are spending with your major suppliers, giving you the information you need to negotiate better pricing with your supplier or bulk discounts – savings which hit your bottom line but don’t affect how you do business.
3. Credit Control and Invoicing
Your bookkeeper will take charge of chasing up your debts and invoicing. When you hire a bookkeeper they will be dedicating to maintaining your accounting systems and checking who has paid you regularly so they can spot an invoice as soon as it goes overdue and start chasing at the earliest possible point. Not only that a bookkeeper can take charge of your invoicing process, setting up a system with you so your customer invoices are sent out in a timely manner and avoiding situations where invoices get forgotten about. You’ll be able to boost your profits AND your cashflow.
4. Free Up Your Time
Often the business owner will initially be responsible for bookkeeping especially at the start up phase where budgets are tight and it can be difficult for them to let go. But hiring a bookkeeper will free up their own time to sell more, better manage their business or even just relax a bit more in the evenings!
5. Better Business Decision Making
You bookkeeper will provide you with real time, up to date financials so you’ll know how much profit you are making and the cash you have in the bank. It’ll affect how you do business and the questions you ask each time you sign a new deal or take on new costs:
- Should you ask a client for up front payments?
- How much do you need to earn each month to cover all your costs?
- Can you afford to employ a new team member?
Hiring a bookkeeper will give you all the information you need to help you make these decisions stopping you from committing to unnecessary costs that you simply can’t afford or pushing you that extra bit to make the sales you need to cover your costs.
6. Identify Valuable Customers
When it comes to making sales ‘low hanging fruit’ is an overlooked but simple way to boost your sales. By putting your bookkeeper in charge of maintaining an accounting system they can help you to analyse who your best customers are, how profitable each is and the margin you make on them. Its easy to focus on winning new business all the while ignoring your current client base and opening up those key accounts further – it can be a low cost sales strategy to boost your sales.
Hiring a bookkeeper can contribute hugely to the day to day financial administration of your business and utilised correctly you can soon start to see a boost in your profits.
Anita is a Chartered Accountant with over a decade of experience taking self employed business owners from financially confused to business savvy.
She is the creator of the ‘Go Self Employed’ website, which her corner on the internet where she makes self employment less terrifying.