Are you a small business owner, trying to send out your own invoices, reconcile your receivables, balance your checking account, and more?
You may be wondering:
Should I Hire a Bookkeeper?
The decision to hire a bookkeeper can be a difficult one. Some feel making the leap means you’re giving up an element of control, but the benefits far outweigh any cons.
When starting a new business you may wonder:
How do I know when I need to hire a bookkeeper?
Well, we're here to help!
Below are five signs you may want to consider hiring a bookkeeper.
1. Worrying about the books is taking away from running your business
Most start a business because they found something they are passionate about or because they saw an opportunity. Owners like knowing how much they are spending in certain areas and what needs to be cut out, but time would be better spent making working on the business rather than in the details of the business. Bookkeeping can be especially time-consuming, taking you away from you doing what you do best.
If you're feeling overwhelmed by bookkeeping tasks, you're not alone. These bookkeeping tips for small businesses can help you take control of your financial records while freeing up valuable time to focus on growing your business. Whether you choose to streamline processes yourself or bring in a professional, having a solid bookkeeping system is key to success.
2. Your bank statements have not been reconciled and/or are not up to date
In order to know how your company is performing, your books need to accurately reflect the balance with the bank. For this to happen, books need to be up to date and reconciled. Through the reconciliation process, you can eliminate errors, duplicates and missing transactions, as well as have an accurate understanding of expenses and income.
3. You are unsure if your books are accurate
It is impossible to be an expert at everything. It is worth your time to bring in someone who spends their time already reconciling books, rather than taking your precious time to become an expert. You may be totally unaware that there are mistakes being made. Whether you’re reporting a car payment as an auto expense instead of an asset, or a personal distribution to an expense account, we often see people unknowingly misreporting transactions.
4. Complying with the IRS and State is getting complicated
In 4th quarter of 2015, the state of Utah implemented regulations that required end-of-year forms to be filed electronically. If your forms were not filed electronically you would be subject to penalties and interest. This is just one example of how compliance is constantly changing. With so much weighing on a business owners mind, let your bookkeeper deal with the constant changes in compliance.
5. The paperwork and record keeping is taking over your office
Falling behind on record keeping is definitely a sign that you are in need of a bookkeeper. Timely financial reporting is critical to the success of any business. Once you get behind it is hard to get caught up. It also compromises accuracy when you’re trying record a year’s worth of work in a short amount of time.
Conclusion
Bookkeepers catch most mistakes that the average small business owner will make when trying to manage their finances.
If you’re unsure if you’re keeping your records correctly, consider hiring one. Contact us today to help you determine if a bookkeeping service is right for you.
