8 Signs You Should Invest In Bookkeeping
You should be driving revenue and serving customers, not balancing your books.
Let’s face it; bookkeeping is a menial task that none of us enjoy. We both know you didn’t start a business just so you could spend half of your day crunching in numbers, thinking about bank reconciliations, and ensuring the capital asset schedule is correct.
You’re supposed to be creating plans, negotiating deals, and drawing the bigger picture of your company – not giving a self-inflicted headache. It has been proven that when a company starts asking for accounting advice, the company’s efficiency skyrockets!
Hiring a professional bookkeeper or a good accounting service could lead your business to start getting even more profits. It may take hours for you to finish balancing your accounts, but it would only take minutes for an effective service to realize the numbers at hand.
By doing this method, you’re able to save yourself from unnecessary headaches and keep your company updated to any change of tax laws, thus, preventing your business from paying penalties in the future.
You are spending more time doing the books than managing your business.
It is time to hire yourself a bookkeeper if you find yourself spending a significant part of your day or week doing financial tasks such as keeping financial records of the business.
There are many tasks that a bookkeeper can take on, including pursuing customers with debts, checking vendor invoices, reviewing bank account balances and transactions and ordering stock. Having these tasks off your shoulders will allow you to pay more attention on other areas of your business.
You are failing to keep up to date with all business operations.
Growing paperwork and record-keeping goes with a growing business.
Many business owners are pressed for time, resulting in them leaving the vital task of updating the records to the last minute – typically for tax time or payroll filings. If records are not kept updated and there are financial problems that are not seen early, you are in for a major problem and you won’t even be aware of it.
Failing to keep up to date with records is definitely a sign that you need to hire a bookkeeper.
You doubt that you are keeping records properly.
It’s time to get yourself a bookkeeper if you are spending time checking your books and questioning whether the figures are accurate or correct.
You can save yourself a lot of hassle and give yourself more time to strengthen other aspects of the business by using the knowledge and experience of a good bookkeeper.
It is no longer simple doing your tax and/or other compliance.
Complying with rules and other requirements, such as accreditation, are very important for your business, but performing these responsibilities can take a lot of time.
You have to be up to date with regulatory changes and bring your business processes and records up to date to keep in step with those changes. A good bookkeeper can help your business remain compliant.
You are behind on your business plan
There’s a huge difference between when a novice does it and when a professional keeps your books. No matter how hard you try, you can’t keep up the demand for work that you’re juggling from left to right.
Once you’ve asked for help from a new pair of hands, you’ll see the drastic changes in your company. Plus, you’ll be amazed at how much you would have already saved if you got a bookkeeper from the start.
Follow the fundamental rule of any businessperson: Law of Leverage. You’re not exactly doing it right if you are doing a one-man-show.
You are missing deductions and expenses
You don’t have the luxury of recording every last penny that you spent on your company – you can’t even get a decent coffee break! Leave it to someone else.
You have discovered you have made compliance mistakes
It’s your bookkeeper’s job to keep up with the times. You don’t have to attend seminars and training for updates of legal laws.
Invoices from your accountant keep growing
There’s a chance you’re spending a lot of money on an accountant, whereas if you hire a bookkeeper, they’re economical and will save you money.
It’s not always easy telling when the right time is to enlist outside help for your business. When you see the first sign of trouble, make things easier yourself, and hire a good bookkeeper.