Why You Shouldn’t Have Your Accountant Handle Your Bookkeeping

First, let’s discuss the difference between a bookkeeper and an accountant.

The bookkeeper is your go-to person who knows the ins and outs of your business because she handles the day-to-day for you. The bookkeeper will keep you organized, up to date, and ensure everything balances out every month.

Accountants are tax experts who can provide you with insight and tax planning strategies. However, it’s the bookkeeper who helps you implement and maintain those strategies when she’s got her hands in your books every month.

I may be biased here, but I believe that having a bookkeeper is the best thing you could ever do for your business.

Now that you know the difference between a bookkeeper and an accountant, let’s talk about why you shouldn’t just have your accountant handle the books, too.

1.       Once a year isn’t enough.

How often do you check in with your accountant? Probably only once a year when you hand over everything to file your income taxes. And while the numbers on your tax return can tell you a lot about your business, you are missing fine details which could help you manage your cash flow better or make adjustments to increase your bottom line. You need the nitty-gritty details, not just the basics.

2.       They only focus on the big picture.

A bookkeeper’s job is to make sure every single transaction is recorded and categorized properly, and all accounts are reconciled to the penny. When you hand over your bank statements to your accountant, they simply extract your income and expenses and plug the numbers into your tax return. They don’t reconcile your accounts which means you run the risk of missing bank errors, duplicate charges, extra fees you weren’t aware of, or even lost deposits. Too many variables for my taste. Again, you are lacking the fine details to help you make confident financial decisions.

3.       Checks and balances.

One of the benefits of having both an accountant and a bookkeeper, is the checks and balances that take place. The bookkeeper does her job and wraps up a nice package to present to the accountant. The accountant has fresh eyes and can provide an objective analysis of your books. And with more detail provided by the bookkeeper, there is a better chance you will receive better insight and strategies than if they only had the basics.

4.       Let’s talk money!

“But what about the accountants that offer monthly bookkeeping services, Shannon?”

“Well, [insert your name here], I’m so glad you asked that question!”

Do you know what your accountant’s hourly rate is? Most accountants I know charge at least $150 per hour, and some are well over $200 per hour. And while they may have staff in their office to do the actual bookkeeping work, they will still charge a premium rate of at least $125 per hour for bookkeeping. Now think of how many hours it’ll take to do your books each month. Can you afford that? Maybe, but why would you want to?

As a bookkeeper, I charge my clients a flat monthly rate for a package of services that is customized for their business. And I can guarantee with absolute certainty that it won’t be anywhere near what you’d pay your accountant! An outsourced bookkeeper is more cost-efficient, and she will provide you with a lot of the same expertise as your accountant. Plus, you’ll have a partner to turn to for advice and insight all through the year.

Your accountant is still key to your business for taxes and overall strategies but asking them to do your bookkeeping is like having your doctor change your bed pan instead of a nurse.

A great bookkeeper will work hand-in-hand with your accountant to make tax time a breeze for you.

If you’re ready for a bookkeeper of your own, let’s chat. Click below to schedule a free consultation with me!