Yes, we are used to wearing a lot of hats in our home businesses and we are used to doing a lot of jobs and tasks that we might not be particularly “suited” for. BUT, just because we can do something, does not necessarily mean that we should. There may come a time when hiring a bookkeeper or an accountant might be in the best interest of your home business.
If you are starting to make more money than you can reasonably manage, or if you have a business that is becoming increasingly complicated financially—it may be time to hire a professional. When it is just you and a few revenue and expense checks a month, it may not be a bit deal—but add in some payroll taxes and income from increasingly various and complicated sources and it can get pretty tricky.
When it comes time to interview and hire someone, you’ll get to choose if you want a bookkeeper or an accountant. An accountant has more education and more credentials and can likely prepare your taxes, as well as handle your daily or monthly bookkeeping. If your business is still relatively simple, a bookkeeper may be all you need. The bookkeeper will keep “the books” and you can decide whether or not to give them the power to sign checks, make deposits, etc. Some businesses choose to have both a bookkeeper who does the ordinary, daily record-keeping, and an accountant to help with taxes and the more complicated financial matters.
Take your time in interviewing so that you can find someone who is experienced with small businesses and someone you can trust. It is a good idea to have some checks and balances so you are not just giving someone full reign with all your financial information, but you’ll still want an individual who you can trust and who has strong references. Ask other small business owners for referrals, and/or talk to your local chamber of commerce—they should be able to provide you with some reputable bookkeepers and accountants doing business in your area.
Also: Home Business: Taxes