If you’re a small business owner, then you know how hectic daily life can be. With so many chores and responsibilities, it’s quite easy to overlook financial details. If you read the list below and any of them apply to you, then it’s definitely time to think about looking for professional bookkeeping services to put you on the right track.
Financial Tracking is Intensive
Simply keeping track of finances is one thing, but then analyzing them to understand what’s going on is another story. Requiring special education and countless practice, there are many requirements for analyzing financial documents well. There is a reason larger companies have dedicated departments for bookkeeping and accounting. It’s truly an entire job in itself.
Small business owners don’t often have the luxury of a full-fledged accounting department, but hiring professional bookkeeping services is affordable and is even more effective. There are many benefits to hiring a professional, which we’ll take a look at too. These are the red flags indicating that you might need a pro:
1. You don’t have an existing bookkeeping or accounting team.
This is probably the biggest reason to outsource. With financial tracking being such an in-depth task, relying on yourself to do it all is asking too much. Bookkeepers and accountants go to school for years just to have a basic understanding of the field. To try and tackle finances without a background is a headache, and you’re likely to make mistakes.
2. You’re able to keep track of financial data, but aren’t sure how to analyze it (or you lack the capacity).
Simply keeping everything organized is a commendable act in itself. There are countless documents associated with running a business, and being able to keep them all in order is difficult with the demands of running daily operations. To then expect you to fully understand and analyze them is ludicrous – pass it to a pro and save yourself hours of needless stress.
3. You’re a growing business without a budget for a salaried bookkeeper.
The best feeling for any business owner is growth. Increasing sales and revenue are often a top priority leading directly to increased income. A quick way to lose that good feeling is the realization that you simply can’t take care of bookkeeping tasks yourself anymore. Opting for professional services is far more affordable, and you only pay them when you need them!
4. Other aspects of your business are suffering because you spend too much time dealing with financials.
Dealing with finances and bookkeeping is not only a hassle, but takes a lot of time. Especially if you’re learning as you go, you’re just going to waste several hours. Those precious hours could be used to generate income, and instead you spent them trying to understand your finances. Outsourcing a bookkeeper will add multiple hours to your work week, letting you focus on doing what you do best.
5. Your current software is outdated and you don’t know where to start upgrading it.
If you have an accounting system set up, kudos to you! But have you ever wondered how old your software is? The funny thing about accounting is changes are made every year to the laws, requirements, and specific stipulations. Outdated software might not recognize these changes, making your books incorrect. Rather than trying to find and implement a new software, hire a pro that is already is up to date with current software.
6. Your current bookkeeper is expensive and prone to mistakes.
If you’re one of the smart businesses with a staffed bookkeeper, you’re definitely on the right track. Have you ever wondered how effective they are? Having a full-time employee on staff is expensive, especially when their role does not directly generate income. They may also not have as much experience and training as necessary, causing them to make costly mistakes and errors.
7. Your sales are high, but your profit is inexplicably low.
The golden dream for a business is to have high sales. When your business has high sales, but your profit is low, something is going amiss. You might be spending too much on something, perhaps you missed a deduction, or maybe a product is not as profitable as it seems. Whatever it is, an outsourced bookkeeper can provide an expert eye to identify what’s going wrong.
Where to Find Them
If you read through this list and anything resonated with you, it’s time to find professional bookkeeping services! While the cost of outsourcing may put you off initially, the financial and mental benefits you’ll receive will be worth every penny! Don’t you want total peace of mind knowing your finances are being done right by an experienced professional?
If you’re a smart business owner (and if you’re here, that’s definitely you!), then the answer to that is yes. There are several signals that you might not be able to manage the workload you have right now. The seven mentioned above are just a starting point.
You should be working harder simply because it’s your business, but you should also choose to work smarter. If you can hire someone else to do something more efficiently than you, it’s always a wise choice to outsource and let yourself focus on generating income instead. Your time is money, so saving any time is priceless.
With the complexity associated with bookkeeping, it can be easy to make silly mistakes and miss things. Tax laws change yearly, and it’s pretty unlikely you have been or want to keep up with them. They’re downright confusing. Why waste precious time learning when you can pay someone who already has the knowledge, eliminating the need for you to learn in the first place?
If you’re interested in growing to the next level and maximizing the potential of your business, it’s time to find outsourced professional bookkeeping services. We can take an in-depth look at your documents and situation and show you how we can help. It’ll be the call you wish you made years ago!