Bookkeeper service is a hidden gem for entrepreneurs without an accounting background. Hiring a bookkeeper is one of the smartest decisions small business owners can make. Whether you’re launching a new venture, scaling operations, or simply trying to keep your financial records in order, a professional bookkeeper ensures your finances remain organized, compliant, and stress-free. In this post, we’ll walk through what a bookkeeper does, when to hire one, and why they are invaluable to your business’s success.

Learn more in our previous article, “Top Small Business Bookkeeping Tips for Success.”

What Are the Services of a Bookkeeper?

A bookkeeper handles the daily financial tasks that ensure your records are accurate and up to date. Some of the essential services provided include:

1. Recording Transactions: Tracking sales, expenses, and payments to maintain financial accuracy.
2. Accounts Payable & Receivable Management: Managing bills, invoices, and payment collection to ensure healthy cash flow.
3. Bank Reconciliation: Verifying that your records align with bank statements and catching errors early.
4. Payroll Processing: Handling payroll, ensuring employees are paid on time, and processing tax withholdings.
5. Month-End Close: Organizing records and reports at the end of each month to prepare for tax filing and financial planning.
6. Financial Reporting: Creating reports such as profit and loss statements, balance sheets, and cash flow statements.

Learn more in our previous article, “Bookkeeping as a Service.”

At What Point Should I Hire a Bookkeeper?

Many business owners start by managing their own books. However, as your company grows, financial complexity increases. You should consider hiring a bookkeeper if:

• You spend too much time on bookkeeping tasks instead of growing your business.
• Your cash flow is difficult to track or reconcile.
• Payroll and taxes feel overwhelming.
• You are missing invoice deadlines or paying late fees.
• You want better visibility into your financial health through regular reporting.

Learn more in our previous article, “Bookkeeping Outsourcing.”

What Does a Full-Charge Bookkeeper Do?

A full-charge bookkeeper handles more advanced responsibilities than a traditional bookkeeper. In addition to managing day-to-day bookkeeping, a full-charge bookkeeper:

• Prepares and closes out financial reports at the end of the month.
• Manages payroll taxes and compliance.
• Oversees budgeting and forecasting processes.
• Acts as a liaison between the business owner and external accountants for tax filing or audits.

A full-charge bookkeeper is ideal for companies that need comprehensive financial management but don’t yet require a full-time accountant or CFO.

Should I Hire a Bookkeeper or Do It Myself?

Managing your own books may seem feasible when you’re starting out, but it can quickly become overwhelming. Here are some things to consider:

• Time vs. Expertise: Bookkeepers free up your time so you can focus on strategy and growth.
• Accuracy: Mistakes in bookkeeping can lead to costly errors and missed opportunities.
• Compliance: Professional bookkeepers ensure your records meet tax and regulatory standards.

If you find yourself spending more than a few hours per week on financial tasks, it’s time to delegate bookkeeping to a professional.

Is a Bookkeeper Cheaper Than an Accountant?

Yes, bookkeepers generally cost less than accountants because they handle routine financial tasks, while accountants focus on higher-level advisory services such as tax planning and audits. Many businesses benefit from using both: a bookkeeper for day-to-day tasks and an accountant for tax filings and complex financial decisions.

Can a Bookkeeper Prepare a Budget?

Yes! A skilled bookkeeper can assist with budgeting by analyzing your financial data to identify spending trends and forecast future cash needs. They can collaborate with your management team to build budgets that align with your business goals. While they may not offer the strategic insights of a CFO, a bookkeeper provides the structure and data needed to develop reliable budgets.

Does My Small Business Need a Bookkeeper?

If your business generates consistent revenue, manages multiple expenses, or has employees, hiring a bookkeeper is a smart move. Here’s how a bookkeeper can help small businesses:

• Prevents financial errors that could result in penalties.
• Provides regular financial reports to help you make informed decisions.
• Manages cash flow to avoid shortages and late payments.
• Ensures your financial records are audit-ready at all times.

Is It Worth Getting a Bookkeeper?

Hiring a bookkeeper is an investment that pays off in several ways:

• Peace of Mind: You’ll have confidence that your finances are well-managed.
• Time Savings: Focus on growing your business while leaving bookkeeping to the pros.
• Financial Clarity: With accurate books, you can make smarter business decisions.
• Compliance Assurance: Avoid costly mistakes and penalties by staying compliant with tax and legal requirements.

Frequently Asked Questions (FAQs)

1. What’s the difference between a bookkeeper and an accountant?

A bookkeeper handles day-to-day financial tasks, such as recording transactions, managing payroll, and reconciling accounts. An accountant focuses on higher-level tasks like tax preparation, audits, and financial analysis.

2. How often should my bookkeeper update my records?

Ideally, a bookkeeper should update your records weekly or even daily to ensure financial accuracy and maintain up-to-date reports. This helps you monitor cash flow and stay prepared for tax filings.

3. Can I hire a bookkeeper part-time or on a contract basis?

Yes! Many small businesses benefit from hiring a part-time or freelance bookkeeper, which offers flexibility and cost savings compared to employing a full-time staff member.

4. Do bookkeepers provide tax services?

While bookkeepers can assist with tax preparation by organizing records, filing taxes typically falls under the responsibility of an accountant or tax specialist. However, bookkeepers can ensure your business stays compliant throughout the year.

5. What software do bookkeepers typically use?

Bookkeepers often use software like QuickBooks, Xero, and FreshBooks to manage finances. These tools streamline bookkeeping tasks, generate reports, and ensure accuracy across financial records.

6. How much does a bookkeeper cost?

Bookkeeping fees vary depending on the scope of services and the size of your business. Some bookkeepers charge an hourly rate, while others offer monthly packages. Outsourcing your bookkeeping can be more cost-effective than hiring in-house staff.

7. Can a bookkeeper help with financial forecasting?

Yes, bookkeepers can provide valuable insights by tracking your financial data, which can serve as the foundation for accurate forecasting. While forecasting is typically handled by a CFO or accountant, a bookkeeper’s reports make the process easier.

Conclusion: Bookkeeping as a Foundation for Business Success

A professional bookkeeper brings structure, accuracy, and consistency to your financial management. Whether you’re in the early stages or scaling operations, keeping your books in order helps you stay on top of cash flow, payroll, and tax compliance. At Westport Financial, we provide reliable bookkeeping services designed to meet the specific needs of small businesses.

If you’re ready to explore how outsourcing your bookkeeping can drive growth and financial clarity, reach out to us at Westport Financial to learn more. Our team is here to help you build a strong financial foundation for success.