Running a business in San Francisco is always a financial challenge. Demands for employees, locations, and customer care can narrow a financial margin. Company leaders and shop owners are always seeking innovative solutions to save money and optimize resources.
When it comes to employees, there are specific duties every business must hire for and one is managing finances. Most employers may have a CFO to help keep the company financially solvent. Yet, a CFO usually is not the one to manage the daily accounts receivable and payable responsibilities. That’s typically a bookkeeping role. Many business leaders mistakenly believe they need a full-time bookkeeper when a part-time position can suffice.
If a full-time bookkeeper is expected to sit in an office between 8:00 am and 5:00 pm, there is usually some down for them. If you are a business owner, the question is, are you getting your money’s worth?
Bay Area companies have several obligations to their full-time employees. And the first is properly onboarding them. The process includes:
- Background checks and drug testing
- Official offer letter explaining the terms of employment, job duties, wages, benefits, and start date
- I-9 paperwork to verify the employee’s status and identity.
- W-4 and DE4 withholding certificates.
- Company orientation to hand out the employee handbook and review laws, including EDD, paid family leave, sexual harassment, COBRA benefits process, and health insurance options.
This process requires a significant amount of time and resources before a bookkeeper even begins to review a company’s spreadsheet. For some companies, the investment may seem worth the effort. However, for many medium-sized to small businesses in San Francisco, it’s an additional burden.
Bookkeeping duties can vary among Bay Area businesses because an owner might believe it’s essential to have them on hand all day ‘just in case.’ Some of the duties assigned may have nothing to do with bookkeeping and everything to do with filling in the time. For instance, some bookkeepers are expected to answer phones, run errands, and handle walk-in customers. These are not responsibilities they were trained for! And frankly, the best bookkeepers will feel insulted and probably walk away.
Outsource bookkeeping and get smart about company spending immediately
Finding a great bookkeeper is already a difficult task. If you find the best bookkeeper for your business, longevity will also be important. The best strategy for hiring a great bookkeeper is to leverage those hours to your advantage. Outsourcing a bookkeeping professional has several benefits to your business:
- It shows respect for the bookkeeper’s time and profession. Find a minimum-wage employee to answer those phones and run errands.
- Mitigates the extra expense of managing another full-time employee. HR will appreciate handling an easier, contracted bookkeeper who doesn’t need health benefits and holiday pay.
- Saves valuable site space by eliminating the need for a full-time office. Office space can be scarce in the Bay Area.
If you are a business owner who notices that a full-time bookkeeper isn’t helping the bottom line, contact us. We have very skilled part-time bookkeeping professionals who are also used to partnering with CPA’s and other financial employees throughout the year.
