Why Web Developers Should Hire a Bookkeeper
As a web developer or designer, you are likely pretty technologically savvy as well as being fairly business minded. You can definitely handle doing your own bookkeeping and would rather not pay someone to do something you could very easily do yourself. I think a bookkeeper is a better bet.
Penny-wise and Pound foolish
How much do you charge for your services per hour? Most web developers charge between $50 and $100 per hour, give or take. Now, how much long do you spend doing your bookkeeping yourself? You may have to time yourself for month or so to figure it out. If you haven’t timed it, I guarantee you spend a lot more time than you think. That’s time you could be spending making money. Let’s say you spend two hours a month (that sound you hear is me giggling). A bookkeeper worth her salt can probably accomplish twice as much bookkeeping in half the time. If you pay her hourly and even if you are paying her your hourly rate, you still end up as much extra per month as you are paying her. It is highly unlikely that her hourly rate will be the same as yours and most of us have project rates, so you do the math.
Efficiency and Quality
How often do you put off billing because you have a deadline? Yeah, I thought so. Do you send statements out when clients don’t pay? Do you call clients to investigate why they haven’t paid the bill? Yes, when you remember and have the time. A bookkeeper means that your invoices go out regularly without you having to stop making money to do it. Bills that go out regularly are more likely to paid on time because clients are expecting to pay their bill. A bookkeeper has the time to follow up on unpaid invoices and send out statements (and remembers to do so). A bookkeeper works with the books month in and month out the same way you do with websites. She is much less likely to make errors in the bookkeeping than you are.
When clients call or email with questions about a bill, do your shoulders slump and do you dread following up? For a bookkeeper is isn’t a big deal. We have backup with which to discuss questions and for the most part you never have to be involved. Billing done by a bookkeeper has fewer errors anyway and if she gets you in a good system, a better description of the work done. Both of which make for happy clients!
A bookkeeper will keep track of the books regularly. Your books should be ready for your accountant’s review and preparation of your taxes a few weeks after the end of the year. Well organized books with properly documented receipts make for a reduced tax liability and cheaper tax preparation costs.
Now, why did you say you didn’t need a bookkeeper?