How Do I Know I Need a Bookkeeper?
Lots of new business owners start out keeping the books themselves. And it can be a good idea to conserve cash by bootstrapping as much as possible when starting a new business. But that can change in a hurry.
Whether it's because they've become too busy to do the books themselves or they've reached the depth of their own accounting expertise, most business owners find themselves in need of bookkeeping services at some point.
We've put together 3 tell-tale signs you should consider hiring a bookkeeper.
Most entrepreneurs didn't go into business to spend hours and hours doing accounting work. But many find themselves in just that position. And, if you're spending more time on this function than on other crucial activities like marketing and sales, you've got a big problem.
If you're spending more than 16 hours a month on average on bookkeeping activities it may be time to call in a professional.
Think about it. That's an average of 4 hours per week which doesn't seem like all that much on its face. But it adds up. At 16 hours a month, you're spending a whopping 192 hours per year just on bookkeeping!
You have to ask, is that a good leverage of your time? How much could you grow your company with 192 extra hours a year? That's 24 days per year you could be spending on strategic operations and growing the business rather than on keeping the books.
As we've discussed, spending too much time on the bookkeeping function can mean falling behind on activities that are a far better leverage of your time--- think sales and strategic planning.
So, understandably, many business owners put off the bookkeeping until the eleventh hour. With tax deadlines looming, they spend many panicked hours getting the books current. That usually means a lot of late nights (and headaches). And, potentially, a lot of mistakes.
Plus, when the books aren't current, you can't get the reports you need to make good operational and managerial decisions. And any discrepancies in bank and credit card reconciliations aren't caught at the time they occur making is less likely you'll be made whole if they aren't in your favor.
Finally, putting off the bookkeeping for months means having to recall the nature and purpose of transactions that happened a long time ago. It means a lot of guesswork or chasing after things like receipts and expense reports long after the transaction occurred.
Generally, the bookkeeping function gets more and more complex as the business grows. And it can be a full-time job just to keep up with new compliance regulations and requirements.
An experienced bookkeeper should be fluent in the language of accounting and can liaise with your CPA or tax preparer to determine what your obligations are.
Most business owners just don't have the training and expertise to keep the books when things get complicated. Once the function surpasses a certain level of complexity, it's time to bring in the professionals.
Whether you're falling behind, are spending too much time on the books, or things have become too complicated to keep the books yourself, bringing an expert on board can bring huge peace of mind.
At The Business Builders, we've been bringing peace of mind to small business owners for over 15 years. If you're considering hiring a professional bookkeeper, we'd love to talk!
Whether it's because they've become too busy to do the books themselves or they've reached the depth of their own accounting expertise, most business owners find themselves in need of bookkeeping services at some point.
We've put together 3 tell-tale signs you should consider hiring a bookkeeper.
#1 You're Spending Too Much Time In the Business, not On the Business.
Most entrepreneurs didn't go into business to spend hours and hours doing accounting work. But many find themselves in just that position. And, if you're spending more time on this function than on other crucial activities like marketing and sales, you've got a big problem.
If you're spending more than 16 hours a month on average on bookkeeping activities it may be time to call in a professional.
Think about it. That's an average of 4 hours per week which doesn't seem like all that much on its face. But it adds up. At 16 hours a month, you're spending a whopping 192 hours per year just on bookkeeping!
You have to ask, is that a good leverage of your time? How much could you grow your company with 192 extra hours a year? That's 24 days per year you could be spending on strategic operations and growing the business rather than on keeping the books.
#2 You're Falling Behind
As we've discussed, spending too much time on the bookkeeping function can mean falling behind on activities that are a far better leverage of your time--- think sales and strategic planning.
So, understandably, many business owners put off the bookkeeping until the eleventh hour. With tax deadlines looming, they spend many panicked hours getting the books current. That usually means a lot of late nights (and headaches). And, potentially, a lot of mistakes.
Plus, when the books aren't current, you can't get the reports you need to make good operational and managerial decisions. And any discrepancies in bank and credit card reconciliations aren't caught at the time they occur making is less likely you'll be made whole if they aren't in your favor.
Finally, putting off the bookkeeping for months means having to recall the nature and purpose of transactions that happened a long time ago. It means a lot of guesswork or chasing after things like receipts and expense reports long after the transaction occurred.
#3 It's Complicated
Generally, the bookkeeping function gets more and more complex as the business grows. And it can be a full-time job just to keep up with new compliance regulations and requirements.
An experienced bookkeeper should be fluent in the language of accounting and can liaise with your CPA or tax preparer to determine what your obligations are.
Most business owners just don't have the training and expertise to keep the books when things get complicated. Once the function surpasses a certain level of complexity, it's time to bring in the professionals.
Bringing The Experts On Board
Whether you're falling behind, are spending too much time on the books, or things have become too complicated to keep the books yourself, bringing an expert on board can bring huge peace of mind.
At The Business Builders, we've been bringing peace of mind to small business owners for over 15 years. If you're considering hiring a professional bookkeeper, we'd love to talk!