What is Bookkeeping?
A bookkeeper does exactly what it says, they keep your books in order which is vital not just from a compliance aspect but also for the day to day running of your business. A bookkeeper puts order and structure on your receipts, expenses, bills etc. So instead of having a shoebox full of receipts, you have a neat report/spreadsheet with everything accounted for and organised. Without a bookkeeper, it would be difficult to know how much your business is taking in, outgoings, debtors etc. Without this, you will struggle to forecast an accurate cashflow.
Bookkeepers turn chaos into calm.
Do I Need a Bookkeeper or Can I Do It Myself?
Every business ultimately needs a bookkeeper to turn piles of receipts, documents and paperwork into a neat report/spreadsheet and lever arch file. In Ireland, you are required to keep proper records and to maintain them for a period of 6 years. It’s not just about compliance, it’s about being organised.
Essentially you have 3 options when it comes to bookkeeping
Hire a bookkeeper
Do it yourself bookkeeping
Outsource your bookkeeping
Option 1 makes the most sense if your business has a significant amount of transactions and expenses. However, it will cost you. According to Indeed the average salary of a bookkeeper is currently €31,234 per annum. And this doesn’t take into account employers costs like PRSI, annual leave, IT support, office space etc.
Option 2 is worth considering if you have a small number of transactions. New Startups and Entrepreneurs are often keen to get their teeth stuck into bookkeeping. Especially in the very lean early days. This is fine, but we recommend to put a system in place and stick to it rigidly.
A few bookkeeping tips to consider –
- Keep all your documents organised in a folder and use a spreadsheet (like Microsoft Excel).
- Create templates for your key documents like receipts/invoices.
- Schedule your bookkeeping into your working week. Do not allow it to pile up.
- Don’t allow your personal and business spending mix. Make sure you have a separate business bank account. Sole traders in particular often struggle here.
Your time is better spent on business development and doing what you do best.
You can absolutely manage if you keep on top of all of the above. However, keep in mind the opportunity cost. Spending a few hours a week/month on your bookkeeping is taking you away from running your business. Your time is better spent on business development and doing what you do best. The cost savings of DIY bookkeeping can be wiped out by missed business opportunities.
Option 3 is a happy medium and cost-effective solution for most businesses. By outsourcing your bookkeeping you do not incur the significant costs of hiring a staff member. You also only pay for what you need. By hiring SMEaccounting.ie as your bookkeeping partner you can also be assured that you are getting years of experience. Our bookkeepers handle bank transaction reconciliations, invoicing, debtors, payroll, VAT returns, expense claims etc.
Bookkeeping is charged per hour at €40 . Contact us today to discuss your needs and to get an estimate for your bookkeeping needs.
Focus on your business, leave the numbers to us.