4 Signs It’s Time to Hire a Professional Bookkeeper for Your Business

A good bookkeeper can efficiently handle a lot of details. They can also identify tax deductions you need to learn about and save your business money in the long run.

It’s common for entrepreneurs to wear many hats while starting and growing their businesses. However, recognizing the clear signs that it’s time to hire professional accounting & bookkeeping services can prevent financial mismanagement and costly mistakes.

You’re Overwhelmed

As a small business owner, you have many responsibilities. You must work with customers, manage staff, and constantly look for new ways to grow your organization. However, one task that often needs to be addressed is hiring a bookkeeper. It is important to recognize when your business is ready to invest in a bookkeeper and prioritize this task accordingly.

Having an accurate, up-to-date set of financial records is vital to making sound business decisions. It’s also essential when it comes time to file your taxes and obtain financing. Inaccuracies or inconsistencies in your books can lead to costly mistakes that could negatively impact your business.

If you find yourself only touching your books occasionally, it’s a clear sign that you need help. Outsourcing your bookkeeping allows you to free up your time, so you can spend it on things that will move your business forward or take a well-deserved break.

You’re Not Seeing the Gains You Want

Even if you are passionate about your business, there are better ways to stay motivated than working on tasks that don’t directly help your growth. When you outsource your basic bookkeeping needs to an ICNZB-certified and experienced professional, you’ll be free to focus on front-end business operations, rekindle your passion for your work, and reconnect with why you started your company.

“When your books are outdated, it can be challenging to determine the financial status of your business and make critical decisions that may impact your future. Fortunately, a bookkeeper maintains accurate accounting records by handling daily financial transactions.”

Additionally, a bookkeeper can help you understand the results of your past financial decisions and predict your future cash flow, aiding in effective money management. A good bookkeeper also knows how to interpret financial statements like balance sheets and income statements, demystifying these documents so that you can be data-driven in your decision-making.

You’re Overspending

If your business has experienced rapid growth, it is likely time to hire a professional bookkeeper. A bookkeeper can stay on top of payments and ensure invoices are sent out promptly. This helps keep your accounting accurate and prevents overspending.

Using a time-tracking app to determine how much time you spend on bookkeeping tasks will help you identify when to hire a bookkeeper. If you spend over 50 hours a week on invoicing, payroll, tax filings, and other accounting tasks, it’s time to delegate those responsibilities to a dedicated bookkeeper.

Overspending can be caused by various factors, including lack of a budget, lifestyle creep, FOMO, and wanting to reward yourself or boost your mood. However, overspending can negatively impact your financial health and lead to debt or bankruptcy. A bookkeeper can help you avoid overspending by closely monitoring your accounts payable and accounts receivable.

You’re Not Receiving Payment

While it’s great that your business is growing, rapid growth often comes with several new tasks. Hiring a bookkeeper is a smart decision to ensure that your financial records stay accurate and up-to-date.

A professional bookkeeper can monitor accounts receivable and payables, ensuring that you receive payment from clients and pay vendors on time. They can also assist you in establishing better invoicing and collection processes to improve cash flow.

A background check is an important part of the hiring process for a bookkeeper, as they have access to sensitive information. Use a reputable company that offers criminal and credit checks to help you find the right bookkeeper for your needs. It’s best to hire a qualified bookkeeper at the beginning of your business so they can be familiar with your financial operations from the get-go. Using this approach will save you time and stress down the road.