Bookkeeping is a vital part of running a business, but it may just happen that you've been doing the bookkeeping all by yourself. There are several disadvantages to this, for example, even though it may seem that you're able to cut on initial costs, it'll actually cost you more in the long run when your inexperience or just you getting too caught up in the deed cause you to incur unforeseen costs and expenses. That may be one sign that you would need to hire a bookkeeper for your business. This article provides you with 5 more ways to tell if you need to hire a bookkeeper for small business.
1. You're ended up with little time for your business.
You might have noticed that you're spending a considerable amount of time doing the books. To the extent that it's eating up your time that's supposed to be meant for planning and creating new business leads. Since you're always on-the-go, there's a tendency that you can't keep up with the collections. That could be a major disadvantage for you as its can greatly affect your gross margin.
2. Receipts are nowhere to be found.
We both know that you have been trying your best to keep all of the records intact. But let's face it; it's not going as perfect as you think it would be. Time is valuable to you; therefore, keeping up with the little details is impossible. Your financials are all over the place. The reason why you started this whole thing is to run your business, and not be a certified bookkeeper. There are tasks which are in need of a professional keeper go get one!
3. You have no prior experience.
If you aren't the type who likes it to keep it organize then paperwork isn't for you. Bookkeeping entails a lot of responsibility including paying close attention to details. Accountants have higher rates than bookkeepers that are why even if the task is the same; you're more likely to pay more to your accountant than by hiring a bookkeeper instead.
4. You aren't updated on tax laws.
You're no longer sure how much your company spends on a daily basis since work has caught up with you. Knowing how much you spend and how much you gain every day is important. Tax compliance is an important part of running your business as without it you can't stay on the market very long. You need someone who's updated with the changes of tax law, and can give advice on how to avoid paying unnecessary taxes.
5. Your personal money gets into the mix.
Doing a one-man-show isn't going to last long. Chances are you're already behind the tasks that are intended for yesterday's work and you're coping with it at the last minute. And lastly, once that happens, your business is not going to last. There should be a time and place for everything, meaning your business money should be separated from your personal cash to avoid bankruptcy.
6. Social Media Strategy.
Most businesses use social media to create a presence for their business online, and reach a wider audience. Using social media strategy for accounting is also gaining popularity this year as business owners are becoming more active on social media. This trend in bookkeeping and accounting is not just beneficial for accounting firms but also for the clients who are able to gather information themselves, which provides clarity when it comes to choosing the services provided by an accounting firm.
May 2, 2017