Bookkeeping Readiness
As a small business owner, managing finances is one of your most critical tasks. However, there comes a point when doing it all yourself might not be the best strategy. Hiring a bookkeeper can free up your time, improve accuracy, and provide valuable financial information. Here are the key signs that you need to hire a bookkeeper:
If you are spending more than a few hours a day working on your books than your actual business, that is a red flag. The time you dedicate to managing your books could be better spent on getting more customers, getting discounts from vendors and providing better customer experience.
Bookkeeping requires attention to detail, accuracy and accounting knowledge. You can easily get overwhelmed by the volume of financial transactions that need to be categorized which leads to taking shortcuts. Not knowing if you did your books correctly or how to address issues that require accounting knowledge is very stressful.
At minimum your bookkeeping should be done monthly. If you’re constantly playing catch-up with your bookkeeping, this is a sign to look up a bookkeeper near you. Timely and accurate financial records are essential for making informed business decisions. Falling behind can also mean missing critical deadlines for taxes or financial reporting.
If you don’t know where your business stands financially, it’s time to get some help. Bookkeepers can provide accurate financial reports, helping you make informed decisions and spot potential issues before they become problems. If you really want to dive into the numbers, a CPA can provide valuable insight and guidance.
Cash is the lifeblood of small businesses. Without it, you can't pay employees, vendors, marketing expenses, inventory, etc. It's crucial to understand what's impacting your cash flow and make adjustments in your business. Having great bookkeeping can help you manage your cash flow effectively.
Once you start adding employees, you now have to manage payroll. A bookkeeper can handle payroll processing and ensure compliance with tax laws. This is one area you don’t want to mess up as it leads to audits and possible penalties.
If you had a hard time putting your records together come tax time, you need a bookkeeper. They can ensure your books are always up-to-date and ready, reducing stress and the risk of errors.
A lot of agencies issue severe penalties for not having proper bookkeeping. That’s another reason to have accurate and timely books ready for the auditor.
A bookkeeper is a necessary expense. It frees up your time while providing valuable insights on your business. If you are interested in growing your business while avoiding major pitfalls, you should reach out to me today.
