Every business owner wants to save money, which often leads to doing far more in house than should be done. There comes a time, as your company grows, when you’ll need a bookkeeping service. It’s fine to do the payroll and manage expenses on your own in the beginning, but if your business is growing, you’ll need to expand at some point and a bookkeeping service can free you up for faster growth.
How do you know if it’s time to start using a service instead of doing things on your own? Here are a few indications.
You’re behind in your bookkeeping: A very good sign that you’re ready to hire someone else is when you aren’t able to keep up with bookkeeping on your own. If you can’t open your books and see exactly how much income you have and how many expenses, at this very moment, you probably need some help.
You’re not sure if you have enough money for your own salary: If you aren’t quite sure where the money is supposed to be going, you will want to get someone else to work on the books. It’s essential that you know exactly how much profit you are making at any given time, so you can change tactics if something isn’t working.
Your accountant does your books at tax time: Are you passing everything along to your accountant to do the taxes and catch you up on things? If that’s the case, you definitely need to hire a bookkeeping service, since it’s an area you really don’t want to let go. Not to mention, you’ll pay a lot more when it comes to getting the accountant to do a rush job.
Your clients aren’t paying on time: Of course, you may not realize people aren’t paying on time if you aren’t on top of things. This is a very important reason to hire a bookkeeper, so they can help you chase payments if need be. When you are behind on your books, you may not even know who owes you money.
You keep paying late fee: Are you paying fines because your payments are late? Whether this is due to forgetting to pay or simply not having the money on hand to pay your bills, you need to get on top of things. Being organised is one thing that can be difficult when it comes to money. You need to hire a bookkeeper to stay on these for you and to ensure you aren’t paying late fees on a continuous basis.
A bookkeeping service can help your company grow by cutting down on unnecessary fees and reminding you of customers who haven’t yet paid. It will also free you up to pursue other areas of the business that you excel at. In short, it’s a very good investment.