Running a business is challenging. Most business owners wear multiple hats daily to keep their companies running smoothly. However, as operations grow, there often comes a tipping point where a business owner simply can’t do everything alone. Many opt to outsource to a professional bookkeeping provider to handle the financials so they can spend more time focused on growing the business.
If you’re considering bringing in a bookkeeper, it’s essential to know that it’s okay to pass off this vital function to someone else for a wide range of reasons. Here are three signs that you might need a bookkeeper:
Bigger Financial Picture
One of the biggest reasons why business owners bring in a bookkeeper is to gain a better understanding of their financial position and an assessment of cash flows. If you push off bookkeeping, you may fall behind on your books without access to data that accurately reflects the current state of your business finances. It’s important to know where your money has gone.
Additionally, you may want to take out a loan or bring in an investor. Oftentimes, banks or investors require financials, so you need your books to be up to date. A bookkeeper can prepare budgets, generate projections, and run comparisons so you can assess where your business stands. A bookkeeper can assist with compiling data so you can make better business decisions or prepare for a large expenditure!
Like most business owners, you are likely too busy doing everything else to keep your business running. Time is money. If you find yourself in a position where you cannot afford to spend time dedicated to bookkeeping duties, it’s time to consider hiring a bookkeeper. Hiring a bookkeeper almost immediately creates more time in your schedule to complete other necessary tasks.
A skilled and experienced bookkeeper may be faster and more efficient in maintaining your books as they have the training and experience to navigate bookkeeping software. They will also know how to accurately perform reconciling and review functions to ensure minimal errors in your books. You might be surprised at how little time an experienced bookkeeper takes to maintain your books.
Tax Season Relief
Tired of navigating through the stresses of tax season on your own? A bookkeeper can help. When it comes to your taxes, don’t wait to get organized right before the deadline. A bookkeeper can help you stay one step ahead by closing out the year timely, compiling necessary documents, and preparing your tax package to send to your CPA. The biggest takeaway is that your year-end doesn’t have to be a stressful scramble to assemble your books and documents.
Your bookkeeper may also act as a liaison between you and your CPA. As the primary person maintaining the books, they can often answer any questions arising from your CPA. If you become overwhelmed with tax-related questions, having a reliable bookkeeper to answer questions on your business’s behalf can be a huge stress relief. Reach out to our Client Accounting Specialists if we can help!