Signs You Need a Bookkeeper
You are running a business, wearing all the hats, or at least multiple. You find yourself trying to evaluate where best to invest your time, so you can have a better work-life balance. So how do you know when is the best time to hire a bookkeeper? We have summarized the most popular signs that now is the time.
BOOKKEEPING TAKES UP MORE TIME THAN YOU CAN AFFORD
Think about how much time you spend per week on bookkeeping. Then, grab your calculator and see how much your time is worth. Next, calculate your bookkeeping cost. Finally, sit down and compare this cost against the dollar equivalent of how much the services would actually cost you. If outsourcing saves you money, this is a no-brainer! Get yourself a bookkeeper.
YOU ARE MONTHS BEHIND ON YOUR BOOKS
The dreaded act of entering expenses, checks, payroll and everything else that comes with “the books” has come and gone multiple months now. You have no idea the financial status of your company. You only know the status of your company by the balance in your bank account. This is a clear sign that you need a bookkeeper. Understanding the financial standing of your company through fully reconciled and vetted financial statements is crucial to make sure you stay on track. Imagine, with a bookkeeper, you can know your profit margin at any point in time. You can look at your Balance Sheet and know if your liabilities are getting out of hand. You can walk into a bank and hand them your financials right away when applying for a loan or line of credit. You can have the ability to accurately manage and predict your cash-flow from month to month with timely bookkeeping.
YOUR ACCOUNTANT HINTED
Tax time is here, and you have your annual meeting with your accountant. Your accountant, to this date has always handled “cleaning up” of your books in preparation of taxes, but this year has questioned whether you would be interested in taking on a bookkeeper. This is a clear sign that your company has now grown to the point that you need someone to keep up with and keep track of more complicated assets, accounts, and expenses. Hiring a bookkeeper can not only help you keep everything up to date and correct, but also serve as a second set of eyes and may even protect your company from fraud.
YOUR SALES ARE GREAT, BUT YOUR CASH IS NOT
You have a steady influx of new clients and contracts coming through your doors. You know that you will have money coming in based on the value of your new contracts. Suddenly, you are so busy building your empire, that you haven’t invoiced a single client. Now your bank balance is creeping towards the red. So, you finally sit down and issue invoices for all those new contracts. This reactive cycle is a clear sign you need a bookkeeper. Your bookkeeper will be able to help you keep those invoices going out, so your cash will continue to flow in. You will be able to keep doing what you do, get new contracts, while having the confidence your business will stay afloat. By having a bookkeeper sending new clients invoices timely, it will send the message to your new client that you are taking care of all aspects of your business, and have confidence in your products and services.
CONTACT TIGHT SHIP FOR OUTSOURCED FINANCIAL SOLUTIONS!
If you're looking to free up your time so you can focus on growing your business, contact Tight Ship today to discuss custom bookkeeping options. Simple and streamlined bookkeeping.