Does your bookkeeper pay for themselves? Or are they costing you money? A good bookkeeper should be able to either save you enough money or find enough revenue to pay for them. In fact, you should treat your bookkeeper (and most other staff) as an investment. You are looking for a return on your investment (ROI) for you staff just like you would for any other investment.
Ways a Bookkeeper can save you money
Let’s look at a couple of examples from our own recent experience to demonstrate some of the ways a bookkeeper can save you money.
- An analysis of a client’s merchant accounts resulted in converting to a new service which will result in savings of at least $300 per month. This client sells gifts and is entering the busiest time of the year with the holidays. Converting at this time will result in huge savings and increased cash flow through the end of the year.
- A review of another client’s bank accounts in the medical field revealed that they had been charged twice for the same insurance policy. A phone call to the insurance provider resulted in a refund of the additional premium. The reversal of the additional charge resulted in an additional $1,200 in cash flow for the client
- One of the services we offer our clients is the full circle communication with their tax professional of choice. We received the preliminary results for one of our clients from their CPA with an astounding $30,000+ tax bill. Knowing the client’s business we knew that could not possibly be true. They ran very slim margins and cash flow was always managed closely. With a thorough review of their accounts, we determined that the office manager had classified loan money received as income. The overstated revenue numbers were the root cause of the huge tax bill. We got to be heroes that day, a rare occasion for the bean counters of the world.
Ways a Bookkeeper can earn you money
Now, let’s see how we might find some additional revenue for a client
- While reconciling the credit card accounts for an IT services company we found $8,000 worth of purchases of equipment for one of their customers that had not been billed to the client. An unusually high Cost of Goods sold for the month resulted in additional billable expenses. The client was able to invoice their customer for the additional expenses resulting in improved cash flow
- A client that does innovative medical research is working on a contract with a monthly billing schedule as part of the contract. While reviewing their results on this contract so far (about half way through the performance period) we determined that they were actually a month behind in billing. Once we put in a call to the person in charge of administering the contract and confirmed the schedule, we were able to bill for an additional $40,000.
Each of the examples above has 1 thing in common. Each one of these scenarios either put money back in the client’s pocket or saved them money. In each instance, the savings or the additional revenue was enough to pay for the bookkeeper’s services many times over.