Every new business owner and even some seasoned veterans make mistakes in regard to managing their business’ finances. Because the decision-maker may be taking care of customers and managing other areas of the business, we thought we would put together some tell-tale signs of when you need to speak to a bookkeeper to free up your time by outsourcing.
1) Your books are always behind.
You started your business because you felt a passion to contribute to an industry, not be a bookkeeper. This will often leave these necessary action items at the bottom of the list, after the rest of the tedious “chores” required to own a business. The result? When you meet with potential customers, do you know where you are regarding your goals, income, or expenditures. If not, this can lead to misappropriating money and effort. When regular, consistent reporting and balancing is done, you and your team can confidently approach your days, weeks, and months with purpose.
2) You’re spending too much time ON your business and not IN your business.
If you are a sole proprietor or otherwise a one-man (or woman) shop, you must be focusing on providing the service or product your customers requested, and oftentimes, that isn’t sitting at your desk, nose down in your finances. Even if you have a team of employees, your time and skill set is undeniably better spent elsewhere. Once that critical mass is met, a discussion with what a bookkeeper can take off your plate is a good idea.
3) Taxes are overwhelming.
Whether you try to stay up-to-date, keeping every last receipt…or are a little looser in your processes (tsk tsk!), filing your taxes as a business can be complicated. Having a bookkeeper experienced in how to properly post different items like stimulus money, PPP, and EIDL loans, is beneficial. You might be missing deductions, paying too little or even too much.
4) You’re spending too much on an accountant.
Did you know that accountants and bookkeepers are entirely different things? That could make a whole other post within itself (and maybe it will next month), but accountants have a much more fine-tuned, more detailed skill set. Bookkeepers record transactions and simply keep things in order. Accountants are licensed to take those records and give you advice in regard to them. So for those day-to-day needs, a bookkeeper is needed to keep your financials up to date, so you can have those conversations with your CPA.
We hope that the definitions and benchmarks listed above can help clarify your needs and get you asking the write questions about your business. When it is time, give us a call and we are happy to discuss our services!
