When it comes to preparing the bookkeeping for your business it can often be a hard decision to either prepare it yourself, or to pay a bookkeeper to prepare it for you. At first this decision may seem like trying to pick between the lesser of two evils. Much like taking your car into the mechanic for routine maintenance and finding out that you need to have $1,000 worth of work done. However, they let you know that you can save $200 in labor if you do the work yourself. Both options seem painful and in the end, you aren’t sure if the $200 you are going to save is worth the extra effort.
There is another way of looking at this scenario that sheds light on some of the true benefits of using a bookkeeper. Let’s say that by outsourcing the bookkeeping, you are able to free up 2 more hours a month to see patients. Assuming, on average, your production level is close to $400/hr, you will have not only made enough money to pay for the most expensive of bookkeepers, you will also have made a profit on the decision. If you are preparing the books while the practice is open for seeing patients, then looking at using a bookkeeper is something that definitely should be pursued.
The analogy used above provides another great reason for hiring a bookkeeper. Having a mechanic repair your car is going to most likely mean that the work gets done correctly and in an efficient manner (assuming an honest mechanic), when compared to doing the work yourself. The same goes for bookkeeping. A good bookkeeper is going to be able to do much more for your practice then record transactions in QuickBooks. They are going to assist in reconciling the accounts receivable, ensure that invoices are paid on time, and aid in maintaining an appropriate cash level in the practice. All of these things require context and understanding which can only be obtained though experience and expertise. The things they can do for your practice will put more money in your pocket by avoiding paying extra penalties and interest, confirming patient collections make their way to the checking account in an efficient manner, and avoiding unnecessary overdraft fees.
There is yet another, more intangible definition of wealth, which will be generated by hiring a bookkeeper. Time. Even if the books for the practice were being prepared outside of normal business hours, you would be taking up your precious free time to do so. Is that extra work worth the $600-$700/month you are going to save, by not hiring a bookkeeper? Or would you much rather spend those weekends and nights with family, friends, or even a hobby like repairing your car?
Please feel free to give us a call if you find yourself trying to decide if a bookkeeper is right for your practice.