Why you should hire a bookkeeper and invest in bookkeeping services
If you are the owner of a business that is growing at a steady pace, you can only live with DIY bookkeeping for so long. Maybe you have been using a random spreadsheet template you found online. Maybe you spent money on some accounting app. But as your business grows and you finances get more complicated - you are going to wake up one day determined to hire a bookkeeper.
While there is no exact rule on when you should hire experienced bookkeeping assistance, there are basic, telltale symptoms that business people experience just before they reach a tipping point. If you are experiencing any of these things listed below, it’s probably time to get a bookkeeping professional.
You are confused and stressed during tax season
Are you gathering your paperwork at the last minute? If yes, you are not alone. The entrepreneur mentorship organization named SCORE has said that 40% of small businesses admit that accounting and bookkeeping are the things they fear most about operating their business. The average person logs about 13 hours toward their taxes every year. For business people, that number goes up to 24 hours. If you are spending a significant amount of time and attention that could otherwise go towards further developing your business then it’s definitely time to bring in help.
Your books are never up to date and you’re running your financials out of a shoebox
When you are behind on bookkeeping, your records do not reflect the actual status of your finances. That makes it difficult (if not impossible) to understand your cash flow and accurately measure the health of your business.
For example, if your cost of goods sold has not been updated in one year then you can’t subtract it from your revenue in order to know your profit. This means you are essentially blind to how much money you are actually making and to the steps you can take to improve your income.
Also, if your books are not up to date, you will be playing a ton of catch up booking during tax season. This makes a usually stressful time needlessly more difficult. With a qualified bookkeeper, you can expect to receive monthly financial statements so you will always know where your cash is coming from and going to.
Here is how a good bookkeeper can help you
When it is time to pick up the phone and find a bookkeeper, here is what a professional and qualified bookkeeper should offer.
You need a bookkeeper that can give you a quick and helpful response. If your bookkeeper takes forever to respond to emails, or goes away on vacation without letting you know, it's time to get someone else.
Bookkeepers need to speak two languages. One to communicate with accountants and other bookkeepers, and another to converse with the rest of the world. Your conversations should never be confusing and loaded with jargon. Make sure your bookkeeper is able and willing to explain your books in a way that you understand.
One of the greatest benefits of working with a qualified professional is that you receive up-to-date financial statements that help you further plan your business moves and simplify preparing your taxes.
Interested in hiring a bookkeeper? Get in touch with us today.