Bookkeeping is a quiet profession, full of myths and misconceptions, that has been getting some attention in recent years. More and more businesses are beginning to understand the need to hire a bookkeeper.
However, different myths swirl about the bookkeeping profession, and while the stereotypes might be true, there are a few misinterpretations regarding the real duties of bookkeepers.
For small business owners, employing a bookkeeper might look like an expensive luxury meant for big companies. Moreover, with the availability of accounting software, you can avoid such luxury until you can avoid it, right? Maybe, but maybe not. If you are thinking of hiring one, take a look at these myths before doing so.
Myth #1: Bookkeepers are to be feared
True, some professions are scary, but bookkeeping isn’t one of them. This sentiment notwithstanding, many people are surprisingly scared of their bookkeepers.
Some bookkeepers think this fear isn’t necessarily for the bookkeepers but for what they fear the bookkeeper is about to say. Nothing is worse than a call from your bookkeeper, especially when something looks off.
Bookkeepers aren’t scary, and if there’s anything wrong with your books, it’ll get sorted.
Myth #2: Accounting Software should replace bookkeepers
There’s been a lot of fuss about accounting software and how they should “replace” bookkeepers. This software might be able to do a job meant for ten bookkeepers in a quarter of the time, but what they can’t do is manage themselves and keep your business’ finances arranged and ready.
Even with new software, you’ll need a bookkeeper who can manage them as well as offer some advisory suggestions.
Myth #3: Bookkeepers are math whizzes
Another of the common myths about bookkeeping is that bookkeepers are great at math. Many people figure that since bookkeepers spend their time balancing books and tracking down financial transactions, they must be math geniuses. Although most of it has to do with math, it isn’t advanced as people think.
It’s safe to say that bookkeepers aren’t math geniuses. When outsourcing your bookkeeping to someone, don’t imagine them hunched over a table having fun with figures.
Most of them are regular people who do a good job of managing the financial transactions of businesses. A good part of bookkeeping has to do with being precise and accurate more than solving complicated math problems in a short time.
Myth #4: Bookkeepers just do data entry
People make offhand statements to bookkeepers that mean that all they do is data entry. There is more to a bookkeeper than putting down data in a spreadsheet. Experienced bookkeepers provide invaluable services for their companies.
Myth #5: Only big businesses need a bookkeeper
Another widely believed myth is that bookkeepers are for the big wigs whose companies are worth millions of dollars. Small businesses don’t need bookkeepers to manage their books.
Wrong! Bookkeepers don’t come for one size of business. Every business, small or big, could do with a professional bookkeeper managing their books.
If you’re running a small business and doing the books is your idea of a nightmare, outsource the chore. Get a bookkeeper.
Myth #6: Accountants are better than bookkeepers
Accounting and bookkeeping are different professions. Accountants are a step above bookkeepers in terms of the job description, although they depend on the work of bookkeepers to do their jobs well.
A bookkeeper records all the financial transactions made by a business while the accountant analyses and audits the data. This is why outsourcing bookkeeping is a common practice. One bookkeeper can manage two or more businesses. Neither is better than the other, but both work in tandem for the financial well-being of the business.
Myth #7: Bookkeepers are dangerous third parties
I could see how this misconception has grown. Bookkeepers have access to and record transactions for businesses. It stands to reason that they will be privy to a lot of sensitive financial information. Even scarier than a bookkeeper knowing this information is a bookkeeper sharing this information.
You don’t have to fear bookkeepers. They are bound by professionalism and trust. Your information is very safe with them.
Myth #8: Bookkeepers don’t come cheap!
Well, why would bookkeepers come cheap in the first place? No reason at all. While they aren’t cheap, they also don’t cost an arm and a leg. Bookkeepers charge a pretty good fee to help manage your business. The average bookkeeper goes home with $40,000 every year. Are bookkeepers cheap? No, but their charges won’t hurt your balance.
Myth #9: I can do my bookkeeping myself
This myth is birthed from the one that says that bookkeeping is a fancy name for data entry. Once people hear this, they figure out that they can manage their bookkeeping themselves without prior knowledge. Wrong!
There’s a whole lot more to bookkeeping that you wouldn’t be able to do so let the qualified person do it. However, outsourcing the job leaves room for you to focus on your business.
Myth #10: When you get a bookkeeper, you lose control of your business
The money is where things happen. Yes, but bookkeepers hardly deal with money or have control over the business. The job of a bookkeeper is to track and take note of all financial transactions made by the business.
Let these myths go and see bookkeepers in a better light! Talk to us today at Sound Accounts! For more information about outsourcing your books, check out our post here.
