In your business, it’s important to make smart financial decisions. Many include finding ways to cut costs, increase your margins, and ways to make sure you are maximising your profit while adding value to your customers.
It can be a temptation to find cheaper services for your business. It might even be a good decision, like a more affordable cleaning service for your office. If the service does not meet your expectations, you can easily find another service that provides good value for a good price. It’s a small risk. But clearly, there are certain services that can be perilous if you try to save money on the short-term but suffer bigger losses in the long-term. Bookkeeping is one of those services and this article explores why cheap bookkeepers are not a better value.
Valuable Bookkeepers Get the Job Done Right the First Time
Bookkeepers organise and keep track of the expenses and cash flow of your business. A good one will make sure everything is accounted for, that every expense gets directed to the right account, and prepares financial information to make sure you are informed of the finances of your business.
A cheap bookkeeper does not have the same experience and value as a seasoned and trained bookkeeper. Because of this, you may risk the chance that financial information is processed incorrectly. This will ultimately raise the prices of your accountant to fix these mistakes. In the long run, you may lose money on the “cheaper” service.
Good Bookkeepers Ask Great Questions
One difference between a valuable bookkeeper and a cheap one is their questions. A valuable bookkeeper will do his/her homework about your business, learning the ins and outs of your finances, cash flow, and industry standards. They will ask questions that will improve the way you run your business, encouraging innovative ways to record, interpret and process financial information. If you hire a cheap bookkeeper, you run the risk that they will do the minimum required for your business, eliminating the opportunity you have to grow.
Cheap Bookkeepers Won’t Add Input
Cheap bookkeepers are focused on getting the job done quickly with a quality that reflects the price you paid for. A good bookkeeper will understand your financial reports and find ways to improve the business.
Cheap Bookkeepers Can Be Unreliable
Cheap bookkeepers tend to be unreliable with communication, with no timely responses to your emails and vital questions. They are often behind on the books and at fault when payments bounce, neglecting the cash flow of your business. Your bookkeeping software might have a significant amount of old transactions. All this inconsistency can prevent your business to adequately record financial information and can ultimately hinder your business.
Cheap Bookkeepers Cost a Lot of Money
Ultimately, with the possibility of a higher accountants cost, expenses accrued from late bills or mishandling finances, and inaccurate financial reports and data, cheap bookkeepers can cost you a lot of money and headaches. It’s worth getting a quality bookkeeper. It’s one area in your business that you don’t want to skim. After all, would you chose the cheaper doctor or the quality doctor when you get sick?
Great bookkeeping will always add value to your business. That’s why at Alexilum, we are committed to providing quality to all our customers. We work with countless industries, endless system implementations, and provide outstanding communication to find your need and opportunities. Through needs analysis, process design and loyal confidentiality, we would love to partner with you to provide an outstanding bookkeeping service.
Contact us today to find out more about how we can help your business.