What do bookkeepers do and are they worth it?

Bookkeepers used to keep ledger books for businesses thus their name. Of course with the invention of computers and programs like QuickBooks very few people keep literal books in a ledger anymore although it is a great way to learn bookkeeping for children. So why not just use QuickBooks and do your own accounting? This is a matter of how much you value your time and what other things especially money making things you could be doing if you hire a bookkeeper to do it for you. What is a few hours walk on the beach worth to you? or if you are a workaholic, how much more business could you pull in if you were freed up of the record keeping aspect of your business? If you can pull in double the amount it costs to hire someone to do the record keeping aspect then you have paid for them and made your business more successful.

Here is a list of some things that bookkeepers do:

- Verifying and entering information into journals, ledgers, and computers
- Compiling reports and financial statements
- Receiving, recording, and paying out cash
- Balancing checkbooks with monthly bank statements
- Posting accounts receivable and payable
- Preparing and making bank deposits
- Recording payrolls
- Maintaining inventory records
- Purchasing supplies
- Preparing purchase orders
- Sorting documents and filing bills

Most good bookkeepers will also save you money, they know tax laws that you don't and can help you make good decisions that will save you money.One example is purchasing a company vehicle. Did you know if you buy a vehicle that weighs more than 6000 pounds you can take a $24,000 deduction off the price of the car? If you buy one that weighs less than 6000 you can only take a $3000 deduction, that information alone you could more than pay the cost of your bookkeeper.

Bookkeepers have less education than a CPA or a Public Accountant; some are high school graduates with on the job training. Bookkeepers generally have some trade or tech school training for less than 1 year and then on the job training. As they have less education than a CPA they are less expensive, one average is about 35% less than a CPA.If you need someone to do your record keeping on a frequent basis but don't have the money to hire a CPA than a bookkeeper might be the right answer for you. It is a great place to start hiring out the record keeping work you are doing.

Bookkeeping skills such as record keeping of profit and loss, expenses, payroll, and many other accounting activities are required by law and most small business owners would like to have time to build their business rather than spend it record keeping. Most business owners would be wiser to use their time in this manner as well because that is more effective use of their time. Hiring a bookkeeper is good business because it frees you up to do what you do best and builds your business faster.

The American Institute of Professional bookkeepers and is the national association for professional bookkeepers. It has over 30,000 members, 97% with recommended certification. It is a great place to start looking for a bookkeeper for your business. There is also the Association of Government Accountants.

Most bookkeepers specialize in certain areas of expertise so they are a valuable asset in their specialty. Some examples of specialties are health care, insurance, manufacturing, or real estate. In larger companies bookkeepers could specialize in certain tasks such as accounts payable, receivable, or payroll.

Bookkeepers are in high demand from Jan 1-April 15th so if you are thinking about hiring one do not wait until tax time. You could be waiting a long time.