When you’re running your own business it can be difficult to decide when you need to start bringing on extra help, especially for administrative tasks that you’ve been handling yourself. Most small business owners start out doing everything themselves, and get used to things being that way. Many actually prefer it that way. When you’re doing everything yourself, you know you have complete control. There’s nobody else to answer to, and you know things will get done the way you want them done.
Eventually though, things will have to change. If you’re doing things right, your business is going to grow. It will become more of a challenge to keep everything under control and running smoothly as a one-woman (or one-man) show. The very same attitude that got you through the lean and mean startup phase will become something that begins to hold you back.
The most critical part of your business is, of course, its finances. If finances are not managed correctly, failure is inevitable. One of the first employees most new businesses hire, even if it’s just on a part-time basis, is a bookkeeper. A bookkeeper will help to manage the money, allowing the business owner to continue to focus on running and growing the actual business.
Here are a few tips to help you decide if it’s time to enlist the help of a bookkeeper to manage your business finances.
You’re Spending More Time Doing The Books Than Doing Business
If you find that you are spending a lot of time during the day or week working on the books and following up with financial transactions, it may be time to think about bringing someone else on board.
A bookkeeper will be able to take over things like keeping track of bank account balances, chasing after customers for payments and reviewing invoices. This will give you time to focus on the areas of your business that you enjoy and are part of your expertise. And because a bookkeeper has the expertise in their field, they often have strategies to complete these tasks more efficiently.
You’re Falling Behind With Financial Transactions
A lot of business owners, of course, are not financial wizards — and don’t want to be. They would rather stick to developing ideas and finding new customers. Unfortunately, the result is often that bookkeeping tasks get pushed back until they become an absolute necessity.
Out of date financial information can be extremely dangerous. You could end up spending money that you don’t really have, missing payments from customers or missing payments to suppliers. Even worse, you could get yourself into legal trouble when taxes come due.
You Aren’t Sure If You’re Doing It Right
In the beginning, keeping track of financial records might only take a few minutes a day and doesn’t get much more complex than balancing your personal checkbook. As you grow though, things become more complicated.
If you find yourself unsure about whether or not you are keeping accurate and correct records, it’s time to get some outside help. One mistake is bad, but a mistake made over and over for months can be disastrous and costly to fix. A bookkeeper will be able to make sure things stay on track and get done right every time.
Meeting Tax Or Other Regulation Requirements Has Become Too Complicated
There is a reason people make careers out of being accountants and bookkeepers. There is a lot of specialized knowledge needed to make sure financial records meet the requirements of tax and other regulations.
A bookkeeper goes through continuous training and updates in order to keep up with changing laws and regulations. They’ll be able to assist with tax filings and payments to avoid costly penalties and interest.
A Bookkeeper Will Save You Time And Money
In the end, hiring a bookkeeper is going to save you a lot of time and money. They already know what they are doing and will get things done quickly, whereas you’ll need to look things up and learn as you go. They will also be able to keep things under control, saving you from the extra costs of paying fines, suffering interest charges and other financial fumbles that happen when things fall behind.
Money is the lifeblood of your business. If there’s no money, there’s no business. It’s just that simple. If you’ve got any doubts at all about your financial records — as the saying goes — better safe than sorry. Hiring a bookkeeper will help you keep your business stable, growing, and on the path to success. Most important, you’ll find that you’re able to make better and more informed financial decisions about your business, both today and tomorrow.