One of the most common stories is the small business owner who tries to do the bookkeeping themselves only to end up in a mess when the tax return is due at the last minute. There will come a point in your entrepreneurial journey when you need to hire a bookkeeper.
Even if you do great business accounting on your own, you won’t be able to effectively document your gains and losses by yourself. You still have the rest of your business to worry about.
Here are 6 signs it’s time to hire a bookkeeper for your business.
1. When Things Get Too Complicated
While your business is small and not generating a lot of revenue, it’s common to do the bookkeeping yourself or use bookkeeping software.
But you’ll eventually make more money, will need more supplies and will have to do more intense bookkeeping. When your business gets to this point, you’ll have to call in a professional bookkeeper.
2. You Can’t Train or Manage a Staff
Is your bookkeeping time cutting into the time you can train and manage staff?
This can be the case when hiring an in-house bookkeeper. Rather than training a staff member, it may be easier to outsource bookkeeping services until you can afford an in-house bookkeeping staff.
3. To know If Your Business Is Making A Profit.
Hiring a Bookkeeper enables you to have a clear view of your financials at any given time, a fundamental to knowing where your business is heading. By keeping your books up to date, and having a record or your expenses & income, we can create a profit & loss at a moment’s notice – giving you the visibility over your funds.
4. To Make Sure Everything Is Paid On Time.
Between traveling, keeping the startup moving forward, putting out the daily fires that pop up and staying balanced, something most likely gets left out along the way. And that often ends up being the bills that need to get paid.
You don’t want your credit impacted by late or forgotten payments, so put a bookkeeper in charge to give you the confidence that everything has been handled on time.
5. Maintain Good Cash Flow.
Because you are so busy, you may not realize that there are outstanding payments from your client base. Any late payments here could infringe upon the cash flow you need to keep your startup humming along.
With a bookkeeper working for you, he or she can stay on top of this and send out reminders to make sure your cash flow remains optimal. This will also look good when it’s time to seek another round of funding because you can show positive cash flow you might not have been able to show without that assistance.
6. Ensure Correct Tax Filings.
The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. Depending on the type of business structure you’ve created for your startup, you will have various tax requirements, including estimated tax payments, corporate tax payments, and other filings. It’s ideal to find a bookkeeper who can handle taxes a well as payroll and other financial issues.
Get In Touch With Us For Our Services!
We don’t just say it, we deliver – our work speaks for us! Contact us for 30 mins of free consultation and opt for our Online Bookkeeping Service.
Cloud Bookkeeping, Inc.
3281 E. Guasti Road, Suite 700
Ontario California 91761
Tel: +1 (909) 952-3804
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