Many small business owners find that they have plenty of time to manage each part of their business when it first starts to grow. However, as the business becomes more profitable, it becomes increasingly important to take stock, and start delegating tasks to the professionals that can do them best. In some cases, this means outsourcing certain necessities to outside talent.
After all, as a business owner, it’s your responsibility to focus on the crucial areas of your business that you can adapt with your expertise. Once of the roles that you can easily hand off to someone else is bookkeeping. In fact, you might have considered hiring a qualified bookkeeper before – but how do you pinpoint the best time to take the plunge
1. Doing the Books Leaves You Less Time for Your Business
If you find that you’re spending a hefty portion of your day or week ensuring that your financial records are in check, this might be a sign that your company is desperate for a qualified bookkeeper. A bookkeeper can take on various responsibilities, such as chasing down customers for money, ordering new stock, reviewing invoices from suppliers, and checking the bank balances for your company, so that you can focus on other aspects of the business
2. You’re Forgetting to Chase Down Payments
When customers aren’t paying you – either because you don’t have the time to chase them, or you feel uncomfortable about asking for money, it’s a good idea to get a bookkeeper involved. Sometimes, your bookkeeper can help to organize money collection reminders on your behalf, so you don’t miss out on picking up crucial packages of cash.
3. You’ve Lost Track of Business Transactions
When your business grows, the amount of record keeping and paperwork involved starts to grow too. Every small business owner is struggling for time, and that means that they can leave the important task of updating records behind until they absolutely have to do it. Unfortunately, if you lose track and you can’t keep your records up to date, there might be financial trouble to deal with later down the line.
4. Financial Tasks Are Becoming Too Complex
There comes a time when every small business owner has to realize that they’ve never received the training required to become a professional bookkeeper. Sometimes, the tasks in bookkeeping will be simple enough for you to tackle yourself, and other times you’ll need a professional to be sure you’re dealing with each aspect properly.
5. You Don’t Know How to Organize Your Records
If you look at your records and wonder whether they’re actually accurate or correct, then it’s definitely time to bring an expert bookkeeper into the fold. These professionals have the experience and knowledge required to save you some hassle and give you time to organize other areas of your business.
6. You’ve Fallen Behind
When other important business tasks get in the way of keeping your company afloat, it can be easy to fall behind on your bookkeeping. Unfortunately, falling behind could result in you making poor decisions based on figures within your accounting systems that are actually inaccurate or incomplete, meaning you can’t make informed choices for the business.
7. You Need Help with Tax Compliance
It’s very important that your business is able to comply with necessary requirements and regulations, such as accreditation, if you want to stay up and running. However, adhering to things like tax compliance can be very time consuming. Fortunately, a qualified bookkeeper can help to save you some of this time and ensure your business performs according to its responsibilities.
8. You’re Not Tracking Expenditure
If you’re not tracking the money that your business spends, this is a huge red flag that you need a bookkeeper – and you need one now. Remember that you have lots of different things to pay out for, from utilities, to rent, and raw materials. All of these aspects must be tracked for proper tax compliance, and to ensure you’re not spending more than you need to on tax at the end of the year.
9. Your Accountant Is Working As Your Bookkeeper
If you have an accountant, you might find that they take on some of your bookkeeping tasks for you – but this isn’t exactly a favor. The truth is that accountants actually charge more than bookkeepers to perform the same tasks, which means that you’re spending extra money which could be used towards other areas of your business.
10. You’re Co-Mingling
Finally, if you’ve started paying for expenses out of your own pocket, or using your own personal credit card because you don’t want the stress of tracking expenses, this is a sure sign that you need a bookkeeper. Doing this isn’t saving you any money, and a bookkeeper could help to take some of the stress off your shoulders when it comes to running a cost-effective business.
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