You may be able to handle your own bookkeeping when you first start your business, but over time, your business will grow and you might find yourself asking, “is it time to hire a bookkeeper?”
There are a number of indicators that suggest it is time to consider finding assistance:
- When bookkeeping is taking too much time and keeping you from your core business. If you are unable to focus on growing your business and exceeding your clients’ expectations, you should consider outsourcing the back-office functions that are not related to your core business.
- When your business has grown significantly and you find yourself falling behind on invoicing, collections, and paying bills. Vendors want to be paid and customers need timely invoices. Cash flow problems can stop your business growth and harm your reputation.
- When you hire employees and have increased payroll responsibilities. Payroll does not have to be complex; however, there are tax requirements that need to be met to avoid penalties. Employees should be paid on time and receive an accurate paycheck. A bookkeeper can assist with setting up payroll, health benefits, taxes, etc. in a payroll system and either run the payroll on schedule or function as support while you run payroll yourself.
- When you cannot get your financials compiled for tax season. Your Tax CPA needs timely, correct financials to prepare your tax return. If you do not have confidence in your financials, are missing information, or need to enter all transactions for the year, it is time to get assistance.
- When you are paying your CPA accountant to handle bookkeeping tasks. Accountants and bookkeepers have different functions. There can be overlap, but accountants cost more. Bookkeepers can be an economical way to ensure your CPA is used appropriately.
- When your profits are not as expected. Where does all the money go? You work hard, but do not have much at the end of the month to show for it. A bookkeeper will track every transaction so you can see spending trends and habits.
- When you start adding loans, lines of credit, or have partners. Every business needs to have a clear picture of their assets and liabilities. It is easy when you only have a checking account, but things get complicated as you add loans, lines of credit, or partners. A bookkeeper can maintain an accurate balance sheet and income statement which allows business owners and lenders to make more informed decisions.
- When you do not have time to enjoy life. Family, friends, and hobbies are a gift. A bookkeeper can provide a few extra moments in your day to exhale and ensure that you have time to enjoy, participate, and engage in the life you have built outside of work.
If you would like to discuss how a bookkeeper can help you and your business, ADKF can help. ADKF can assist with bank & merchant statement reconciliation, financial statement preparation, monthly & quarterly accounting services, payroll tax filings, property tax rendition, QuickBooks set-up and training, and sales tax filing.