Hiring a bookkeeper might seem like an extra expense you can’t afford in these bootstrapped days of a small business or startup, but it’s very likely that you will benefit from good bookkeeping services in a myriad of ways despite the hiring cost.

5 signs it’s time to hire a bookkeeper

  • You are strapped for time.
    There’s only so much you can squeeze into one day and as a busy business owner, it’s often a case of too many tasks and too little time. When time is your currency, you need to use it wisely. As a small business owner there is a premium on your time, and at some point it doesn’t make sense to spend hours on bookkeeping when those hours would be better spent managing customer relationships or making new sales.
  • You’re missing things.
    Not everyone is blessed with the meticulous attention to detail and mathematical gifts it takes to be an efficient bookkeeper. Do you know how to properly document and categorize each and every transaction to maximize your tax deductions and optimize cash flow? Are you incurring late fees or interest because you can’t stay on top of all the finances each day? Is payroll or inventory inaccurate? It might be time for a professional bookkeeping service who can manage those things for you.
  • You’re behind.
    There’s a reason why cash flow is king. Without it, you’ve got no transparency over how your funds are tracking or the ability to do any future planning. The reality for most small business owners is that your paperwork grows with your business. How up-to-date are your books? If you are using stale, “dead” data, you don’t have an accurate picture of revenue or future cash flow. You’re not equipped to make the smartest decisions for your business. You need your financial data tracked daily—not just when you have time to stumble through your books.
  • Taxes are torturous.
    Properly kept books should actually make tax season a breeze for both you and your accountant. If tax season means painful, constant phone calls and emails between you and your accountant, it’s likely that your books have not been kept clean during the year. Asking your accountant to do your bookkeeping is like asking a lawyer to do your admin, so you’re paying a premium for that skill set. If your accountant is preparing your books and getting your records in order, you’re probably spending too much. A good bookkeeper can help reduce your accounting costs by preparing clean books to hand over to your accountant. Similarly, many small businesses find that they missed out on tax benefits because they weren’t aware of the breaks and documentation they require. A bookkeeper with boots on the ground will be uniquely prepared to help you take advantage of taxes year-round and make filing your taxes much more smooth.
  • Profits aren’t increasing.
    When you aren’t seeing the profits and gains you’d like, it may be tempting to just focus on working harder and selling more. But what if the numbers are telling a different story? Bookkeepers can help you keep your finger on the pulse of your business by helping you decrease operating expenses and optimize cash flow, as well as identifying trends and problems.

Are you ready to hire a great bookkeeper?