Why a Bookkeeper is Your First Hire When You Start a Small Business

Women entrepreneurs can be very resistant to hiring a bookkeeper. Most women handle the books for that small business known as a “family,” so they figure, “What can be so difficult about doing it for my new business?” That’s true. It can be deceptively easy.

It’s easy to do wrong.

Not Just Data Entry

When I begin working with a woman entrepreneur as a small business coach, the first thing I ask to see is her Profit and Loss Statement. The answer to this one question can tell me a lot about a woman’s business. Far too often I get hemming and hawing and the statement, “Well, my books aren’t totally up to date.” Or, “I haven’t gotten to it.”

The answer that tells me that this is a business flying on its way to success? “My bookkeeper gave me last month’s P&L and I have it right here.” I rarely get that answer!

My own bookkeeper, Pat Carson of Carson and Crew, who has been with me from the beginning, told me, “It’s not just putting numbers in boxes. It’s putting the right numbers in the right boxes.” Too many women entrepreneurs regard bookkeeping as a data entry chore. They rebel at paying over $10 an hour for what they perceive as a low level task.

These women are often struggling to do everything themselves. As a result, the things that they are really good at, the things that will bring money into the business, seldom get done. Because they don’t’ value themselves, they find it difficult to value others.

Ladies, it’s not just data entry. A good bookkeeper is worth her weight in gold. A good bookkeeper will help you keep your business solvent and on its way to success.

Money is the Success Gauge

Like it or not, money is the gauge of how well your business is doing. Good financial records let you know what parts of your business are working and what aren’t. Records let you know if you have the cash to invest in the next “bright shiny object” that passes your way. Loan officers use financials to ultimately decide whether or not they will give you a loan. If you don’t have accurate records, it’s like driving a car in California’s Tule Fog. You have no idea where you are going.

When your records are up-to-date, you can look back over the year and see your success. You can see what marketing efforts have paid off. So, when you do your business plan for the new year, you can make adjustments and invest in marketing efforts that are working.

Your Bookkeeper Can Teach You

There is a lot to learn about financials. Figuring out the intricacies of software like Quick Books is rarely worth your time. (And trust me, put the wrong number in the wrong box in Quick Books and you can have a horrible time trying to figure out how to fix it!) Your time is better spent in conversation with your bookkeeper. Ask her what reports are important to business. If she is a good bookkeeper, she will be able to guide you as you start your business. She can help you be on top of your finances in a way that is meaningful to a business owner, not a data entry clerk.

Starting a new business, even a home based business? Start it right. Begin interviewing bookkeepers – at least three – today. Sail into the new year with a firm hand at the tiller!

Article Source: http://www.coacheslyceum.net

Casey Dawes helps women entrepreneurs start and build a successful small business. She is a small business coach who focuses and supporting women small business owners. For the best business development support, become a member of the Wise Woman Circle (www.WiseWomanCircle.com) and get business coaching, training and support affordably.

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