Bookkeeping is an essential function of every business. It can help you determine your business’s financial health, which can lead to better decisions and business success. Bookkeeping also allows you to assess the amount of money that goes in and out of your business and to avoid any legal responsibilities. It also lets investors know the status of your business. Because of the importance of bookkeeping to your business, it’s crucial that you only hire someone who fits the bill. You want your business’ books to be updated and accurate, right?
Bookkeepers can either work as full charge or normal bookkeepers. Although both a full charge bookkeeper and a normal bookkeeper can manage your business’ books, they are different in some ways. One position might offer services which the other position lacks. Do you know which type of bookkeeper can actually bring positive results to your business?
To help you come up with a sound decision on which type of bookkeeper you should hire for your business, consider the points below:
What Is the Role of a Full Charge Bookkeeper?
Your business’ financial health doesn’t only require keeping track of your money and how much your business is earning during a certain period. It involves a lot of factors – all of which play a significant role in your business’ daily operations. Neglecting any of these factors can significantly harm your business. This is where you’ll need the services of a full charge bookkeeper. Because a full charge bookkeeper manages both the accounting and bookkeeping of your business, they play a more comprehensive role than a part-time or full-time bookkeeper. Additionally, a full charge bookkeeper is also responsible for the following:
- Most often than not, a full charge bookkeeper will handle two important roles in a business. First, they will manage the accounting, which can include completing minor tasks, namely, invoices, checks, and other financial documents. Second, a full charge bookkeeper will also manage all of the banking work. This can include tracking all of the money that goes in and out of the business’ accounts and checking for any irregularities among these processes and documents.
- As the name suggests, a full charge bookkeeper will solely manage the bookkeeping aspect of the business. Because of the sensitivity of the information they work with, a full charge bookkeeper usually reports directly to the senior manager of the business. A full charge bookkeeper may also be required to report to the board of directors or auditors.
- Although a full charge bookkeeper can be a valuable asset to your business, the cost of their services may become an issue. Usually, hiring a full charge bookkeeper will cost your business around $35,000–$43,000 every year, a cost that is considered very expensive especially for new and small businesses.
What Is the Role of a Normal Bookkeeper?
Working with a normal bookkeeper involves a straightforward process. All you have to do is upload all of your financial documents every month, and the bookkeepers will immediately work on your books on your behalf. Once you’ve successfully uploaded all of your bank statements, invoices, and receipts on the server, normal bookkeepers can take care of everything for you. They can manage all of your books promptly and store these on the same server so you’ll be able to access these documents the moment you need them. A normal bookkeeper also has the following roles:
- Aside from having someone responsible for keeping track of your business’ financial health, hiring normal bookkeepers also allows you to enjoy other services within reasonable fees. For example, you can let a normal bookkeeper pay your bills and even prepare your taxes, just to name a few. Working with a normal bookkeeper can provide a long list of benefits, but some businesses are hesitant in hiring them because they worry that employee efficiency and security can become an issue.
- Fortunately, normal bookkeepers have already addressed these concerns. Normal bookkeepers can guarantee that a business’s financial information is stored safely in their servers and that employees are working as efficient as possible. Normal bookkeepers actually work for bookkeeping companies, and these companies are required by the local authorities to follow laws and regulations pertaining to cybersecurity. Additionally, these companies are also expected to generate and implement precautions, such as cyber insurance policies and off-site backups.
- Outsourcing the services of a normal bookkeeper guarantees that you’ll be working with experienced and trained professionals. These normal bookkeepers go through a thorough background check, are interviewed by companies, and sign non-disclosure policies to ensure that your business’ data are stored safely and properly. Working with a normal bookkeeper can give you more time on your hands, which can be spent on other aspects of the business.
Hire the Right Person
If you want your business to thrive long term, pay attention to the kind of bookkeeper you’ll hire. Don’t hire a bookkeeper just for the sake of doing it; hire a bookkeeper because you know that their skills and services can pave the way towards your business’ success.