5 ways hiring a good bookkeeper will save you money and grow your company

A good bookkeeper does a lot more than pay the bills. Your bookkeeper is managing your lifeblood: Cash.  You need enough cash to keep your company going until your customer pays you. That's where your bookkeeper comes in, helping your company grow by saving you time, and saving you money by managing your cash.

1. Negotiates with vendors to secure optimum payment terms
2. Doesn’t let you overdraw your checking account, pay your credit cards late, or pay unnecessary finance charges or bank fees
3. Doesn’t let your customers pay late
4. Doesn’t let you sell to customers whose balances are too high
5. Fully utilizes savings plans, health benefits, payroll, and the newest tax incentives

How much does a good bookkeeper cost? You can start out with a bookkeeper who works only a few hours each week, or once or twice a month, and expect to pay between $40 and $65 per hour for her time. You should see an improvement in your cash flow in less than 3 months and as your bottom line grows, so will your business. Eventually, you’ll hire your bookkeeper full-time, at a lower hourly rate, with benefits.

Where do I find a good bookkeeper? A good bookkeeper stays up to date on the accounting software system you use, so you can search online for your accounting software system and your location (e.g. “quickbooks seattle).  And it’s always great to get a referral from someone you know, so ask your business-owning friends who they work with, ask your CPA, and ask your trade association for bookkeepers who specialize in your industry.

How do I make space for a bookkeeper if I work from home, or don’t have an extra desk?  A good match for you is a bookkeeper who stays abreast on updates and changes to the accounting software system you use, so find someone who is part of a professional group or network that supports bookkeepers in their ongoing software educatin. If it's QuickBooks you use, search online for  “quickbooks help wanted  " and use the free "post your project or job" to send a direct line to the nation's QuickBooks professionals. It’s always great to get a referral from someone you know, too, so ask your business-owning friends who they work with, ask your CPA, and ask your trade association for bookkeepers who specialize in your industry.

How much does "managing the cash really matter"? Cash goes out of your company to pay for everything to sell your product or service, and run the company, before your sales can be made.  The trick is to have enough cash to make your sales and keep your company alive until your customer pays you and your cash comes back in. If you’ve borrowed the money to make sales, your cash flow is a lot different from your competitor who does not have to borrow. After 3 years the difference between your net profit and your competitor's will he huge, and your competitor will have cash to re-invest and grow and you will not. Little things add up over time, and a hiring a good bookkeeper is the best way to save money and help your company grow.