If you’re a startup founder, you know that bookkeeping and taxes can be a lot to track. You might also ask, “can’t I just do it myself?” Well, you could try to do it yourself; however, there comes the point where it’s just too much, and you need someone’s bookkeeping expertise.
Consider the time, cost, and opportunity invested in doing your own bookkeeping that you could have allocated to running the core of the business. If you find that you don’t have the time (or the patience) to keep up with your bookkeeping, it might be time to outsource this important task. Hiring a professional bookkeeper can save you time, money, and a whole lot of stress.
Still undecided? If you notice some of these signs, it’s high time to hire a bookkeeper:
1. You don’t have time to keep up with your bookkeeping
If you’re too busy to stay on top of your finances, then it might be time to hand over the reins to someone else. A bookkeeper can free up your time so you can focus on other aspects of your business, such as business strategy, marketing, and operations. They will maintain the financial records while you focus on expanding the business. They should also keep track of your income and expenses, prepare and file tax returns, help you manage your cash flow, and provide financial reports.
2. Your books are inaccurate or in disarray
Good record-keeping is essential for any business. If you’re not keeping track of your finances, it’s going to be very difficult to make informed decisions about your business. If your books are inaccurate or in disarray, it can create problems in the long run. An experienced bookkeeper can make sure that your books are accurate and up-to-date, ensuring all income and expenses are recorded properly and consistently.
3. You’re always behind with the financial statements
If you’re constantly playing catch-up with your financial report, then it’s time to get some help. A bookkeeper can help you do proper book closing and to get the monthly balance sheet, income statement, and cash flow ready.
Financial statements are the most essential report you need to have as they provide the summary information of your business revenue, expenses, profitability, and liability. This report is a valuable asset for decision-making, so delaying it will have a negative impact on business growth. Once you have your financial records in order, it’s important to review them regularly. This will help you catch any errors or discrepancies.
If you spot anything that doesn’t look right, make sure to follow up and correct the problem. This will give you peace of mind and help you avoid any potential problems down the road.
4. You’re not sure how to budget for your business
If you’re not sure how to set a budget for your business, a bookkeeper can help. They can assist you in creating a budget for your business so that you’re spending money in the right places.
Knowing your business income and expenses is the first and foremost step in creating the budget. You need to know how much money is coming in and out. If you find that your expenses outweigh your income, your bookkeeper can help you identify where you may need to make some cuts. Since bookkeepers are responsible for the data entry of your financial transactions, they are the ones who know the trend of your cash receipts and disbursements.
5. You need help growing your business
If you’re looking to take your business to the next level, expanding is a must and a bookkeeper can help you with this. They can provide you with financial tools and processes that will help you grow your business. They can also offer advice on financial matters, set up financial goals, and find ways to save money.
If you’re experiencing any of these signs, it might be time to hire a bookkeeper. Hiring a bookkeeper is a smart investment in your time and your financial future. In other words, if you’re looking to save time and money, consider hiring one.
If you have questions about hiring a bookkeeper, contact us today and we’d be happy to assist you.