One of the advantages of being a small business is the ability to keep costs low. Running a small outfit means you’re agile and can move quickly. But it also means if you’re not careful, you could end up running around like a headless chicken. Learn the 4 signs that it’s time to hire a Professional Bookkeeper.
When you start out, you’ll probably have time to do most of the financial stuff on your own. However, there will come a time when your business gets too big, and you’ll need to find help.
But how do you know when you’ve reached that point?
We’ve identified four signs that mean you need to hire a bookkeeping service.
1. You’re running out of time
Sooner or later, the demands of tending to the financial side of your business will become too much for you to handle alone. As your business grows, other areas will need your attention, and then you’re left floundering.
You’ll soon come to realise that your time is more valuable in other parts of the business, so it makes sense to hire a professional bookkeeper. It’s an easily delegated task that will save you money in the long term. Plus, it will leave you to concentrate on growing your business.
2. Always fighting fires
The less time you spend on your books, the bigger the hole that’s developing within your business. The last thing you need is for your bookkeeping to fall behind because that can lead to all manner of problems.
For starters, you won’t know what you’re spending or making. And if you don’t understand your profit margins, you can’t make critical business decisions. Then, if you aren’t fully aware of your financial position, you can’t accurately predict your cash flow. That means you could be late paying invoices are even miss payroll.
Then, of course, there’s the money you’re owed. If you’re behind with your bookkeeping, you can easily miss overdue invoices, and if you’re not receiving the money you’re due, your business can’t survive.
By hiring a professional bookkeeper, they’ll keep an eye on your accounts receivable to make sure you’re paid on time.
3. Tax nightmare
Tax season is never an enjoyable time, but if your finances have been neglected, you’re going to be in for a very rough ride. Outdated books will lead to numerous phone calls and emails to your accountant. You may also find yourself missing out on tax benefits. All of this can be avoided by using the services of a professional bookkeeper.
4. Your profits aren’t increasing. Time to Hire a Professional Bookkeeper
Your sales are increasing, which is fantastic. But there’s a problem. Your profits aren’t following suit.
The issue could well be lurking in those financials you’ve been neglecting. Having a high turnover is excellent unless there’s no margin there. Having a professional bookkeeper keeping an eye on things will help you understand what’s happening within your business. With their help, you can keep an informed eye on your operating expenses. Then, when you know where your money is going, you can optimise your cash flow and identify issues before they become full-blown problems.
It’s time to hire a professional bookkeeper
If any of those scenarios ring true, it’s time you sought the services of a professional bookkeeper. It will free up your time and give you peace of mind that you have qualified eyes monitoring the financial health of your business.