5 Signs That You Need A Bookkeeper
Where possible, many business owners want to keep the workforce as streamlined and efficient as possible. A small, effective workforce is easier to manage – and to pay. Therefore, some will be less than keen to bring in help in the form of a bookkeeper. These financial advisors and data specialists may seem like a waste of time to newcomers that want to handle the books themselves. However, there are clear signs to look out for that highlight a clear need to hire a bookkeeper.
1) Running out of time
Time management is a crucial skill when running a new business, and some tasks are prioritized over others. The financial records are often the first to fall behind. Bookkeeping is far too time consuming for all managers, and this has a negative impact on productivity in the business. Therefore, it makes sense to hire a bookkeeper to do the work, so that you can run the company and make more of those sales and purchases mentioned in their reports
2) Too many errors
This lack of time and failure to concentrate on current data can lead to errors in the bookkeeping. This could be due to this rushed effort to fit it in, or also down to some inexperience in this department. There is too much to consider with all the different statements, all the incoming money from orders, credit card payments and the outgoing money with receipts, taxes and payroll. A dedicated, experienced bookkeeper should eliminate those errors.
3) Records that are out of date
These errors can then lead to a backlog of work and corrections that put the records too far behind. You can’t be dealing with January’s receipts and petty cash while trying to balance orders in late February. The sooner that financial discrepancies and problems are identified, the better. A bookkeeper will be able to stay up to date with ease.
4) Complications with taxation
Tax is thorny issue for all business owners. We all have to make sure that we are following the law and paying what we owe, when we owe it. The problem is that if data on orders and payments can go wrong and fall behind, so can data on taxes. This could be disastrous if not addressed properly. A bookkeeper will straighten everything out.
5) Questioning the worth of your accountant
Then there are those on the other side of the fence that decided to go all out with a top accountant, rather than working on the data themselves. Eventually, many realise that they are paying high fees to an accountant when a bookkeeper would handle the issue just as effectively, as a much cheaper rate. Accountants are great for advice and auditing, but not necessary for basic data and profit reports.
As you can see, bookkeepers are far from a waste of time or money in many circumstances. It is better for management to admit that they are struggling to keep up, and then reach out for help, than continue to fall behind. These bookkeepers will lighten the load and ensure that the numbers begin to make more sense again.