9 Signs You Need to Hire a Bookkeeper
When it comes to being a business owner, finances and bookkeeping can be daunting and frustrating. You have been keeping your own books but find that you don't have the time to give them the attention it needs. Not to mention, it probably isn't your favourite thing to do nor a skill that comes naturally to you.
Bringing a bookkeeper in as part of your business team can be a wise decision. But you can't hire just anyone. You must ensure they are credible, trustworthy, and fit you and your business.
Here we will share some of our best tips for recognizing the value of hiring a bookkeeper,?
What value do bookkeepers bring to your business?
Expert Care. While bookkeeping may seem simple enough to handle on your own, they bring a lot of value to your business. A good, credible bookkeeper has the education and skills to care for your finances thoroughly. Not only will they keep your records up-to-date and accurate, but they will also be able to provide real-time reports. When it comes to taxes and other business requirements, this is a must-have if you wish to avoid penalties and late fees.
Year-End Tax Prep. Not only are bookkeepers valuable for the day-to-day transaction, but they also help you to get and stay organized for year-end taxes. With complete and accurate records, you will end up with fewer hours spent on taxes which means a less expensive bill from your accountant.
Fraud Protection. Having another set of eyes on your finances is always a plus to minimize fraud and protect you. The ongoing process of account reconciliations and auditing will keep you safe.
Free You to Do What You Do Best. Finally, a bookkeeper will free up much-needed time for you to focus on your business. Without the concern for regular bookkeeping tasks, you can dedicate your time to your work and the future of your business.
How do you know that you need a bookkeeper??
Here are some tell-tale signs to be on the look-out for:
Time Management. You are finding that doing your bookkeeping takes up more time than you can afford.
Backlog of Bookkeeping Work. Despite your best efforts, your books are never up-to-date. Not only does that mean that your overall financial picture isn't correct, but it can also mean that you may not be charging properly for your products or services. The cost of goods sold (COGS) changes regularly, and not being on top of them can cut into your revenue.
You are Paying Your Accountant Way Too Much. Your accountant ends up doing your bookkeeping. Then when it comes time for taxes, you find yourself sending way too many emails to your accountant. CPAs generally charge significantly more than bookkeepers. Not to mention, they don't always provide monthly reports and insights like a bookkeeper will.
You've Missed Out on Tax Write-Offs. As you grow in your business, you begin learning about all the deductions you could be taking -- then you realize you could have been using these deductions all along. Here's where your bookkeeper comes in with the training to look for these types of expenses and categorize them for you.
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Your Business Cash Flow Isn't Predictable. As a small business, you don't always know when your revenue will come in. The problem is that you have expenses and vendor payments to make along the way. Having cash flow sheets from your bookkeeper will help you see what money is still owed to you and what expenses are coming up.
Paying Estimated Taxes is Painful. Understanding your monthly finances will help you pay taxes without the fear of underpaying and owing later or overpaying and giving the CRA an interest-free loan. Your bookkeeper will help you calculate your taxes correctly.
Your Profits Aren't Increasing Along With Your Sales. If you are finding that your sales are increasing, but your profits are staying the same, you need to be watching your profit margins. Your bookkeeper can help you make the decision to increase your profit margins.
Your Computer Has a History of Security Problems. Keeping your financial files secure is essential for your business. Handing off all of this information to a bookkeeper that is required to keep the most up-to-date security will prevent any chance of someone else getting their hands on your data.
Bookkeeping Isn't Your Wheelhouse. When it comes to being a business owner, not everyone has training in bookkeeping. Why not allow someone with the training and expertise to take care of your precious finances?
Where should you look when hiring a bookkeeper?
When you decide it's time to bring a bookkeeper to your team, you need to know where to find the ideal candidate. Here are a few of the best places to begin your search:
How to find the right, qualified bookkeeper for you and your business.
Now that you are ready to find the right bookkeeper, you need to know that they are qualified, credible, and reliable.
Check out my "featured" section for my article on How to Find the Right Bookkeeper.
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I write about #bookkeeping, #finance, and #profit for construction, trades, abatement, and 24-hour emergency response companies.
Although this blog offers business advice, this content is for general informational purposes only—it is not intended to replace the guidance of a licensed legal or financial professional. Information created by third parties that we may link out to or feature on our site is not endorsed by us and remains the responsibility of such third parties. Bookminders Services Inc. assumes no responsibility for errors or omissions in the content.