A common misconception is that the two kinds of bookkeepers are In-House and Outsourced, but that’s simply not true. The two kinds of bookkeepers are Entry Based and Consultative.
Basic bookkeeping can be simply entering the data provided. Lots of bookkeepers do this pretty well. They’ll take the receipts and bank records you hand them, put the numbers in the right boxes, and hand reports back. This might work, in a scenario where nothing out of the ordinary ever happens and you never have questions, but in general this approach opens the bookkeeping system and your planning to errors and omissions. It’s easy to forget to hand over your cash receipts one week and then they just drop out of the system. It’s hard to figure out future planning when you’re not talking about sales trends. Should you buy advertising? Which of your business divisions have the highest margins? Did the Smith job use up more time than you bid for? How would you know?
If you work with a bookkeeper who layers data entry with a clear-eyed approach to business modeling and planning you have a much stronger, more robust system. Now your numbers are telling a story and you have the resources in place to act on that information.
Your bookkeeper, either in conjunction with or in place of a CFO, should be one of your closest advisors. They have clarity on financial issues where you might have extra emotion, they’re committed to your goals, and they can help you move forward on every front.
Red Hen focuses on deep, long-term relationships with our clients for exactly this reason. We’re your partners, not just data processors, and we believe in your journey. All of our clients are individuals so our services are profoundly personalized. Whether you’re hiring your first employee or offering benefits to your 50th, bidding your first client or invoicing your 500th, guarding your first dollar or investing your millionth, we’re there to help you plan and succeed. Talk to us about where you are, where you would like to be, and what support makes sense.