Do I Need a Bookkeeper If I Already Use QuickBooks?

If you're a small-business owner using QuickBooks, you may have wondered, “If I already have QuickBooks, why would I need a bookkeeper?”

It's a fair question. QuickBooks is a very useful accounting tool, but there's an important distinction:

QuickBooks is the tool. A bookkeeper is the person who knows how to use that tool to keep your financial records accurate.

Think of it a little like owning a toolbox. Having the tools doesn't necessarily mean every repair will be done correctly. The same is true with bookkeeping software.

QuickBooks Can Do a Lot — But It Doesn't Make Every Decision for You

QuickBooks can connect to your bank, download transactions, create invoices, track expenses, and generate financial reports. Those features can save a business owner a tremendous amount of time.

But QuickBooks still needs someone to tell it what those transactions actually mean.

For example, a bank transaction may appear in QuickBooks and the software may suggest a category. That suggestion isn't necessarily the correct accounting treatment.

Was the payment an ordinary business expense? A loan payment? An owner's contribution? A transfer between accounts? A purchase of an asset?

Those differences matter.

Bank Feeds Aren't the Same as Bookkeeping

This is one of the biggest misunderstandings I see with QuickBooks.

Connecting your bank account and clicking Add or Categorize on downloaded transactions doesn't necessarily mean your books are correct.

Good bookkeeping also includes things such as:

• Properly categorizing income and expenses

• Matching transactions instead of accidentally creating duplicates

• Reconciling bank and credit-card accounts

• Recording loans and loan payments correctly

• Keeping personal and business activity properly separated

• Reviewing accounts for unusual balances or errors

• Making sure financial reports make sense

A business can have every transaction entered into QuickBooks and still have inaccurate books.

Why Do I Need a Bookkeeper If I Use QuickBooks?

If you're wondering, “Do I need a bookkeeper if I use QuickBooks?” the answer often comes down to whether you need someone to look at the bigger picture.

Instead of simply asking, “Where should I put this transaction?” a bookkeeper is also looking for problems.

Why doesn't this account reconcile?

Why is there an old balance that hasn't changed in two years?

Why does this customer show an unpaid invoice when the owner says it was paid?

Why is an expense showing twice?

Why doesn't the Balance Sheet make sense?

Software can help identify some issues, but experience and human judgment are still important.

Can I Do My Own Bookkeeping?

Absolutely. Many small-business owners successfully handle their own bookkeeping, particularly when the business is new or has relatively few transactions.

The important question isn't simply whether you can do it.

Ask yourself:

Is doing my own bookkeeping the best use of my time, and am I confident that it's being done correctly?

If the answer is yes, QuickBooks can be a wonderful tool for managing your business.

But if you're spending evenings trying to figure out why an account won't reconcile, wondering whether transactions are categorized correctly, or putting bookkeeping off because you're busy running your business, it may be time to get some help.

Sometimes You Don't Need a Full-Time Bookkeeper

Hiring bookkeeping help doesn't necessarily mean turning everything over to someone else.

Some business owners need monthly bookkeeping from beginning to end. Others simply need someone to reconcile the accounts, review the books, correct problems, or clean up QuickBooks before handing the financial information to their tax preparer.

The right level of help depends on your business.

The Goal Is Reliable Financial Information

Ultimately, bookkeeping isn't about keeping QuickBooks happy.

It's about being able to look at your financial reports and trust what you're seeing.

Accurate books help you understand how your business is performing, prepare for taxes, make better financial decisions, and spend less time wondering whether something has been entered incorrectly.

Need Help With Your QuickBooks?

If you've been managing QuickBooks yourself but aren't sure everything is being recorded correctly, We Are Bookkeepers can help.

We provide QuickBooks cleanup and ongoing bookkeeping services for small-business owners who want accurate books without having to spend their own time figuring everything out.

Book a free consultation to talk about your bookkeeping needs and determine what level of help makes sense for your business.