Your Financial Team (Who to Hire and When)
Let’s see a show of hands: how many of us have heard the conventional advice that a bookkeeper should be your first business hire?
Speaking as an accountant who runs a bookkeeping business, let me just set the record straight: bookkeepers are valuable when you’re in the right stage of business, but they aren’t essential for all stages and—in most cases—it’s in your best interest not to hire a bookkeeper first.
What they do
When to hire
Document and categorize financial activity in accounting software
If you aren't willing do to do it yourself; if you would make more money spending your time elsewhere
Prepares, examines, and analyzes financial records
When you need to compile financial data and want help understanding what the data means for your business
Creates a forward-facing financial strategy focused on putting more money in your bank account and building a profitable and scalable company
When you have revenue coming in the door and don't have a custom financial strategy centered on profit for both you and your business
Determines tax strategies that minimize tax liability and prepare tax documents for filing with the IRS
Immediately–if you are not confident in filing your taxes or confident in tax law to ensure you pay the lowest amount legally possible