When to Hire A Bookkeeper
Record keeping is a must for all business owners. Whether you are just starting out or have been in business for a several years, bookkeeping should be an important part of your normal business operations. For every business owner there comes a time when you just can’t keep up with it all and you have to determine if outsourcing your bookkeeping is worth the investment. There is not an exact time when a business should hire a bookkeeper however here are some signs you may want to outsource your bookkeeping to an industry expert.
You Don’t Have Books
If you don’t have books in any accounting software, you may be losing out on the benefits of having technology work for you. Using an excel spreadsheet or just trying to file those receipts for tax time can be very time consuming and ineffective. By utilizing an accounting software you can save a lot of time as well as properly track all you need for tax time. A bookkeeper can take care of your day to day transactions without having to learn the basics of accounting behind the accounting system.
Your Books are Not Up to Date
If you have books, are they up to date? It may be time to hire a bookkeeper if you are struggling to keep them up to date. You cannot get a clear picture of your financial health if they are not up to date. Most entrepreneurs work on average 60 hours per week which will be drastically increased as you may struggle to get them up to date when tax time comes. If you can’t seem to find time to do it, you could pay thousands to get them current. A bookkeeper will be able to provide monthly financial statements to give you a clear picture of your financial health.
Your Cash Flow is Inconsistent
Inconsistent cash flow can be sign that you may need some assistance in properly tracking the amount of cash coming in and out of your business. Inconsistent cash flow over an extended period of time can put your business at risk. A bookkeeper can track your statement of cash flows to assist with the inconsistent cash flow and provide ways to help increase and level out your cash flow.
You May Not Know How Profitable You Are
You know you are making money because you can pay all your expenses. You may even be getting paid by your business, but do you know exactly how much you are making? If you do not know how much money you are making or spending, tax time can a challenge. You could be underestimating your income therefore you are underpaying your taxes or you could be overestimating your income and are paying unnecessary taxes. By properly tracking your bookkeeping, you will know exactly how profitable your business is.
Your Accountant is Doing Your Bookkeeping
If you wait all year and send all your bank statements, receipts, and other business documents to your CPA, you may be paying for unnecessary services. A CPA is going to charge more to compile those documents and create your year end financial statements. This also means you won’t have any monthly financial statements throughout the year. Without someone reviewing your books throughout the year you may be missing out of valuable information that up to date books can provide.
Tax Time is Stressful
If tax time is stressful and you have to send a lot of emails to your CPA in order to complete your taxes, you may want to outsource to a bookkeeper. When a bookkeeper is on your team, the year end financial statements are sent to your CPA along with all pertinent documentation. When you have up to date books, determining the proper tax information can be accessed in order to collect the information without having to request it. This will ensure that tax write-offs are accounted for and your income will be properly reported.
You Simply Do Not Have Time
Your time is valuable and if you are struggling to keep up with all the demands of your business, it may be time to outsource to a bookkeeper to take over your books. Bookkeeping may not be high on your priority list and deciding to reach out for help can make your business finances run more efficiently.
How Can I Help
When you outsource your bookkeeping you get to take advantage of my expertise for the success of your business. By outsourcing your bookkeeping, you will have up to date books, your cash flow will be monitored, and you will know exactly how profitable you are. Tax time stress will be a thing of the past because I will work directly with your CPA to provide all the information they will need in order to complete your taxes. All this will free up your time to focus on other aspects of your business.