Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Table of Contents
Full Charge Bookkeepers: The Overlooked Financial Powerhouse for Small Businesses
Managing your business’s finances can be daunting, especially when your time is pulled in every direction. You’ve probably heard the term “full charge bookkeeper” thrown around, but is hiring one the right move for your business?
The answer depends on your unique needs. For businesses with complex financial requirements, a full charge bookkeeper can make a huge difference. However, for many small businesses, outsourcing bookkeeping may be a smarter, more cost-effective option. In this article, we’ll break down what a full charge bookkeeper does, when hiring one makes sense, and how outsourcing bookkeeping services could be the ideal solution for your business.
What is a Full Charge Bookkeeper?
The title “full charge bookkeeper” reflects a professional who takes full responsibility for a company’s bookkeeping and often overlaps with accounting duties. They are equipped to handle a comprehensive range of tasks, from daily transaction recording to preparing financial reports.
Unlike regular bookkeepers, full charge bookkeepers operate independently, often reporting directly to the CEO or business owner. They’re the financial foundation for businesses that are too small to employ a full accounting team but too complex to rely solely on basic bookkeeping services.
What Sets Them Apart?
The term “full charge” emphasizes their autonomy. They are in complete control of the financial cycle, including tasks that might otherwise require supervision by a controller or accountant in larger organizations.
Key Responsibilities of a Full Charge Bookkeeper
A full charge bookkeeper doesn’t just input numbers—they handle the entire accounting cycle, which involves:
- Identifying and Recording Transactions
- They document all financial activities, ensuring no income or expense goes untracked.
- Posting to the Ledger
- Transactions are categorized into specific accounts, creating a master record for the business.
- Preparing Financial Reports
- From profit and loss statements to balance sheets, they compile detailed reports to help business owners assess their financial health.
- Handling Payroll
- They manage payroll processing, including tax withholdings, benefits, and compliance with labor laws.
- Managing Accounts Payable and Receivable
- Full charge bookkeepers oversee payments to vendors, collections from customers, and cash flow management.
- Tax Preparation and Compliance
- They assist with tax filing by maintaining accurate records, tracking deductions, and ensuring compliance with state and federal laws.
- Closing the Books
- At the end of each accounting period, they reconcile accounts and ensure all financial activity is accurately recorded.
This combination of skills allows them to bridge the gap between traditional bookkeeping and accounting.
When Does a Business Need a Full Charge Bookkeeper?
Hiring a full time bookkeeper isn’t always the right choice for every business. Here’s when it might make sense:
High Transaction Volume
If your business processes a large number of transactions daily, a full charge bookkeeper can ensure everything is recorded and organized accurately.
Complex Financial Needs
Businesses with payroll, inventory, or multiple revenue streams often require the expertise of a full charge bookkeeper to manage these complexities.
No Accounting Team
For businesses that can’t justify hiring an accountant or controller, a full charge bookkeeper can provide many of the same services at a lower cost.
Planning for Growth
If you’re preparing to expand, accurate financial reporting and budgeting are crucial. A full charge bookkeeper can offer insights to guide your decisions.
Skills and Qualifications of a Full Charge Bookkeeper
A full charge bookkeeper brings a unique skill set to the table. Here’s what to look for when evaluating candidates:
- Accounting Knowledge
- Familiarity with Generally Accepted Accounting Principles (GAAP).
- Technical Skills
- Proficiency in software like QuickBooks, Xero, and Sage.
- Attention to Detail
- Small errors can lead to big financial problems, making precision essential.
- Education and Certification
- While formal education in accounting is valuable, experience often carries more weight. Certifications like Certified Bookkeeper (CB) or QuickBooks ProAdvisor add credibility.
- Problem-Solving Ability
- The best bookkeepers can identify and fix discrepancies in financial records quickly and efficiently.
Where to Find a Full Charge Bookkeeper
If you’ve read “Hiring a Bookkeeper” and decided that a full time, regular employment bookkeeper is right for your business, here are some of the best places to find one:
- Freelance Platforms
- Websites like Upwork and Fiverr connect you with freelance bookkeepers who work remotely. This is a great option for businesses that don’t need a full-time hire.
- Professional Networks
- Organizations like the American Institute of Professional Bookkeepers (AIPB) offer directories of certified professionals.
- Online Job Boards
- Platforms like LinkedIn, Indeed, and Glassdoor allow you to post job listings and find experienced candidates.
- Local Referrals
- Ask other small business owners for recommendations. Personal referrals often yield reliable candidates.
- Staffing Agencies
- If you need to fill the role quickly, a staffing agency specializing in financial professionals can help.
Pros and Cons of Hiring a Full Charge Bookkeeper
Advantages:
- Expertise Across Multiple Areas: From tax prep to financial reporting, they bring a diverse skill set.
- Autonomy: Full charge bookkeepers don’t require constant supervision.
- Improved Accuracy: Their attention to detail reduces errors and ensures compliance.
Drawbacks:
- Cost: Full-time bookkeepers can be expensive, especially for small businesses.
- Limited Flexibility: If they leave, you may face a gap in your financial management.
- Not Ideal for Low-Transaction Businesses: For businesses with minimal financial activity, outsourcing is often more cost-effective.
Should You Outsource Instead?
For many small businesses, outsourcing bookkeeping services offers a practical alternative to hiring a full-time bookkeeper.
Benefits of Outsourcing:
- Cost Savings: Pay only for the services you need, without the overhead of a full-time employee.
- Access to Expertise: Outsourced services often employ teams with specialized knowledge.
- Scalability: Adjust the level of service based on your current needs.
- Continuity: Unlike a single employee, a service provider ensures ongoing support, even if one team member leaves.
If your bookkeeping needs are straightforward or budget constraints are a concern, outsourcing can provide high-quality support at a lower cost.
How to Choose the Right Solution
Deciding between hiring a full charge bookkeeper and outsourcing comes down to your specific needs. Here are a few considerations:
- Transaction Volume: High-volume businesses may benefit from having a full-time bookkeeper on staff.
- Budget: For small businesses with tight budgets, outsourcing offers a cost-effective alternative.
- Complexity: If your finances are complex, you’ll need someone who understands tax compliance, payroll, and reporting.
Take the time to evaluate your options before committing to either path.
Conclusion: Is a Full Charge Bookkeeper Right for Your Business?
A full charge bookkeeper can be a valuable asset for businesses with complex financial needs, offering comprehensive support that goes beyond basic bookkeeping. However, they’re not the best fit for every business. Many small businesses find outsourcing bookkeeping services to be a more flexible and affordable solution.
By understanding the role and evaluating your specific needs, you can decide which option makes the most sense for your business. Whether you hire a full-time bookkeeper in-house or explore outsourcing, the key is having a reliable system in place to manage your finances effectively.
Ready to explore outsourcing? Discover how our bookkeeping services can save you time, reduce costs, and give you peace of mind.; content coming very soon! 🙂