A Roswell business owner came to us with multiple locations. Every location was busy. Revenue was coming in. From the outside, the business looked successful.
But there was a problem.
All of the locations were being tracked together in the accounting system. The owner couldn’t tell which locations were performing well and which ones were costing the business money.
We started by separating the financials by location. And once we did, the problem became clear.
One location was underperforming. With the numbers broken out, we could see where things were going wrong and help the owner understand what needed attention.
The owner made changes, and that location started performing better.
The interesting part? The business had been losing out on revenue opportunities all along. The books were technically being maintained, but they weren’t giving the owner the information needed to make better decisions.
I think about that client whenever someone asks me, “Is hiring an accounting service really worth the cost?”
After more than 20 years of helping business owners in Roswell and across metro Atlanta understand their numbers, here’s my answer.
Is Hiring a Bookkeeper Worth It? The Short Answer
If your business is generating $1 million or more in annual revenue, my answer is yes.
At that size, I believe you need professional bookkeeping and accounting support. There’s simply too much at stake to make important financial decisions without accurate, timely information.
If your business is generating less than $250,000 a year, you may not need to hire a bookkeeper just yet.
Today’s accounting software has some impressive automation and AI capabilities. If your business is relatively simple, you may be able to manage your books yourself with those tools and the guidance of a good CPA.
For businesses somewhere between $250,000 and $1 million, the answer depends on a few things:
- How complicated is your business?
- How much time are you spending on bookkeeping?
- How confident are you in your financial reports?
- Are you getting the information you need to make good business decisions?
Revenue is a useful starting point, but it’s not the only factor.
You’re Probably Comparing the Cost of a Bookkeeper to the Wrong Number
When business owners hesitate to hire an accounting service or bookkeeper, they’re usually thinking about the monthly fee.
I understand that. Every business has expenses to manage.
But I think the mistake is comparing the cost of professional bookkeeping to zero.
Because doing it yourself isn’t free. And neither is operating a business without good financial information.
Here’s what you should actually be comparing.
The Cost of Hiring an Employee
Hiring someone internally means more than paying a salary.
There are benefits, payroll taxes, training, software, management time, and the possibility that you’ll eventually need to replace that person.
For many small and midsize businesses, outsourcing bookkeeping and accounting services provides access to an experienced team without the expense of building an entire accounting department.
The Cost of Doing It Yourself
I meet business owners who spend hours every month entering transactions, reconciling accounts, tracking down receipts, and trying to figure out why something doesn’t balance.
That’s time they’re not spending with customers, managing employees, or growing their businesses.
And as the owner, your time is valuable.
If you’re spending 10 hours a month on bookkeeping, ask yourself what those 10 hours could be worth if you were using them somewhere else in the business.
The Cost of Not Knowing Your Numbers
This is the one I worry about most.
It’s the underperforming location you don’t recognize because everything is lumped together.
It’s the customer who hasn’t paid in 90 days, but nobody is following up.
It’s making a hiring decision without really understanding your cash flow.
Those costs don’t show up as a line item on your profit and loss statement. But they’re real.
And sometimes they’re much bigger than the cost of hiring a bookkeeper.
Where the Value of Professional Accounting Services and Bookkeeping Really Shows Up
Most people think the primary benefit of bookkeeping is having accurate financial records.
That’s important, of course. But after working with business owners for more than two decades, I can tell you that the real value goes well beyond keeping the books organized.
You Can Find Money You Didn’t Know You Were Losing
Think back to the business owner with multiple locations.
The problem wasn’t that transactions weren’t being recorded. It was that the financial information wasn’t organized in a way that helped the owner run the business.
Once we separated the financials, the owner could see what needed attention.
I see versions of this situation frequently. Sometimes it’s a location. Sometimes it’s a service line, an expense category, or customers who aren’t paying on time.
When your financial reports reflect how your business actually operates, you can spot problems earlier and make adjustments before they become expensive.
Getting a Business Loan or Line of Credit Becomes Easier
If you’ve ever applied for business financing, you know how much financial information lenders request.
They want accurate financial statements, reliable reporting, and confidence that you understand your business.
When your books are current and organized, you’re better prepared for those conversations.
It doesn’t guarantee loan approval, but it can make the process much smoother.
Your CPA Can Spend Less Time Cleaning Up Your Books
Here’s something business owners don’t always consider.
When your books aren’t accurate, your CPA may have to spend a significant amount of time figuring out what happened during the year before they can prepare your tax return.
That means more questions, more emails, more documents to find, and potentially additional accounting fees.
When your bookkeeping is maintained properly throughout the year, your CPA can spend less time correcting errors and more time focusing on tax planning and other valuable advice.
The Other Professionals You Work With Can Do Their Jobs Better
Your CPA isn’t the only person who benefits from accurate financial reporting.
Your banker, financial advisor, business coach, and other trusted professionals all make recommendations based on the information you provide.
If that information is outdated or inaccurate, their advice may be limited.
You’re already investing in these professional relationships. Good bookkeeping helps you get more value from them.
When You Might Not Need to Hire a Bookkeeper Yet
I don’t believe every business needs to outsource its bookkeeping.
If you’re a relatively new business owner generating less than $250,000 annually, you may be able to manage things yourself for a while.
Especially if:
- Your business has a relatively small number of transactions.
- You don’t have complicated inventory, payroll, or multiple locations.
- You’re comfortable using accounting software.
- You’re keeping your books current every month.
- You have a CPA who reviews your financial information and provides guidance.
Accounting technology has come a long way. Tools like QuickBooks Online can automate many routine tasks, making it easier for small business owners to manage their finances.
But here’s my caution: automation doesn’t necessarily mean accuracy.
You still need to understand what’s happening in your books and make sure transactions are being recorded correctly.
And as your business grows, what worked when you were generating $150,000 in revenue may not work when you’re generating $750,000.
Four Signs You’ve Outgrown DIY Bookkeeping
When business owners contact Blazej Accounting, I tend to hear some of the same concerns.
These are four of the biggest signs that it’s time to consider professional help.
1. Your Books Are Consistently Behind
You keep telling yourself you’ll catch up next week.
But next week becomes next month, and suddenly you’re two or three months behind.
At that point, you’re not using your financial information to manage your business. You’re just trying to catch up with what already happened.
2. You Don’t Know Who Owes You Money
Accounts receivable can become a real problem as a business grows.
If you don’t have a clear picture of which customers owe you money, how much they owe, and how long their invoices have been outstanding, you may be creating unnecessary cash flow problems.
Revenue on paper doesn’t help much if the money isn’t coming into your bank account.
3. Your Business Is Busy, but You’re Struggling to Pay Yourself
This is one of the most frustrating situations for a business owner.
Sales are coming in. Your employees are busy. Customers seem happy.
But somehow, there’s never enough cash left over for you.
There can be several reasons for this, and good financial reporting can help you understand what’s happening.
4. You Don’t Trust Your Financial Reports
Maybe you’re looking at your profit and loss statement and something doesn’t seem right.
Or maybe you’re not looking at your reports at all because you’re not sure what they’re telling you.
Either way, that’s a problem.
You should be able to look at your financial statements and feel confident that they accurately reflect what’s happening in your business.
If two or more of these situations sound familiar, I’d encourage you to start talking with a professional bookkeeper or accounting firm.
What Should You Look for When Hiring an Accounting Service and Bookkeeper?
Not all bookkeeping services provide the same level of support.
And the least expensive option isn’t always the best value.
If I were hiring someone to manage the financial records for my own business, these are the things I’d look for.
Experience With Businesses Your Size
A company generating $300,000 in revenue has different accounting needs than a company generating $3 million.
Ask potential bookkeepers what types and sizes of businesses they typically serve.
You want someone who understands where your business is today and has the experience to support you as it grows.
A Team, Not Just One Person
This is something I feel strongly about.
What happens when your bookkeeper goes on vacation? Gets sick? Leaves the company?
If one person holds all the knowledge about your financial records, you’re putting your business in a vulnerable position.
One of the advantages of working with an accounting firm is having a team that understands your business and can provide continuity.
Oversight and Quality Control
Who checks the bookkeeper’s work?
Even experienced professionals make mistakes. Having another set of eyes reviewing the financial information provides an important layer of protection.
At Blazej Accounting, the CPAs on our management team review client reporting. That additional oversight helps us catch potential issues before reports are delivered.
Experience in Your Industry
Some industries have accounting needs that require specialized knowledge.
Restaurants and construction companies are two examples.
Restaurants need to understand food costs, labor costs, and profitability across locations. Construction companies often need detailed job costing and project-level financial reporting.
You don’t want to pay someone to learn the basics of your industry’s accounting requirements while they’re managing your books.
Clear Communication and Reliable Reporting
Before you hire a bookkeeper, ask a few simple questions:
- When will my financial reports be ready each month?
- Who will be my primary contact?
- How quickly can I expect answers to questions?
- Will someone help me understand what my reports mean?
- What happens if something doesn’t look right?
You should know what to expect before the relationship begins.
Good bookkeeping isn’t just about entering transactions correctly. It’s also about having a reliable partner who communicates with you and understands your business.
Is Hiring a Bookkeeper Worth the Cost for Your Roswell Business?
I would encourage you to ask yourself a slightly different question.
What is not knowing your numbers costing your business right now?
For the business owner with multiple locations, the bookkeeping wasn’t the expensive part.
The expensive part was not having the information needed to recognize that one location was underperforming.
That’s the difference between simply recording transactions and using your financial information to run a better business.
At Blazej Accounting, we call our approach relationship accounting.
It means taking the time to understand your business, your goals, and the challenges you’re facing. It means providing accurate financial information, but also helping you understand what those numbers mean.
We’ve spent more than 20 years helping business owners in Roswell, Georgia, and throughout metro Atlanta gain that kind of financial clarity.
And while not every business needs professional bookkeeping today, every growing business eventually needs financial information it can trust.
If you’re wondering whether it’s time to hire a bookkeeper or if your current accounting support is giving you what you need, we’d be happy to have a conversation.
Contact Blazej Accounting to learn how we can help.