Brought to you by Bennett Financials:
If you own a startup, you’re probably preparing to hire different staff members, and you’re first likely to build your financial staff.
One of the essential finance roles is bookkeeping. By 2026, it’s expected there will be over one million bookkeepers employed in the United States.
But should you hire a bookkeeper in-house? While there are many benefits of hiring a bookkeeper, there are also many things to consider before hiring someone as an employee. Here are some points to think about related to whether or not you should hire a bookkeeper.
Reasons to Hire a Bookkeeper
Bookkeepers are essential for your business. Here are some reasons to hire one in-house:
They Have the Expertise
As a business owner, you may not have a core understanding of essential financial duties and responsibilities.
Bookkeepers have expertise in finance. They have a working knowledge of essential financial responsibilities such as accounts receivable, accounts payable, and taxes.
You’ll Pay Everything on Time
Bookkeepers also know how to organize a business’ finances. It’s easy to forget to pay a bill and even miss an employee payment. A bookkeeper will ensure your financial obligations are met.
Maintain Cash Flow and Spending
All businesses endure this struggle — you’re making sales but you’re not making money. Why is that? The likely culprit is you’re not maintaining your cash and watching your spending.
A bookkeeper will ensure you’re not spending more than what you make. They can make suggestions on ways to save on certain purchases.
In addition, they will ensure all of your clients pay on time and they pay their full amount.
They Know Your Business
Yes, these are all benefits of a bookkeeper. But why would you hire in-house and not outsource? An in-house bookkeeper knows the ins and outs of your business.
This is essential for a startup; your business is new and is growing. The only people who know your brand and business processes are the ones working full-time. You don’t get those benefits when you outsource.
Other Options
Hiring a full-time bookkeeper isn’t the only way to get the bookkeeping help you need. Here are some other options you have:
Outsourcing
Sure, there are many benefits to hiring a full-time and in-house bookkeeper, but there are also benefits to outsourcing a bookkeeper.
You’ll receive the same financial and organizational benefits when you outsource bookkeeping and you’ll save money.
Accounting and Bookkeeping Software
You technically don’t need a human to handle all of your bookkeeping. There’s software available that allow you to automate many of your bookkeeping and finance processes. This software is usually easy to use.
Keep in mind, it’s best to only rely on this software if your accounting is easy. Complex accounting should still be handled by a human who understands finance and accounting requirements.
Should You Hire a Bookkeeper for Your Startup?
While hiring your internal finance staff, you’ll probably wonder if you should hire a bookkeeper. There are many reasons why a business needs a bookkeeper as an employee. However, you have other options to help you complete critical financial tasks. Do your research and pick the option that is best for your startup.
Need more advice for your startup? We offer plenty of resources for startups and small businesses.
