At some point, you’ve surely asked yourself - is it time to hire someone to do this for me?
The answer is...maybe.
As small business owners, we’re resourceful and take pride in doing things ourselves. This resourcefulness is helpful when we start our business as we can minimize costs and run a tight ship. But as our business grows, so to do our responsibilities. Maybe you have a really great spreadsheet template you found online. Maybe you even shelled out for some accounting software. But as your business expands and your financials get more complex—you’re going to get up one day, look at yourself in the mirror, and say, “I need to hire a bookkeeper.”
If you do not have a bookkeeper or lack the time to devote to books, PaqGroup can help you. In particular, the following four signs might indicate that it’s time to hire professional help.
Let’s start with the obvious situations:
1. Your Books Are Not Up to Date
· In order for you to understand how your business is performing, your books should be up to date. If they are not up to date, you probably do not have the time to devote to managing your finances. The most immediate benefit of hiring a bookkeeper is catching up old data. A good bookkeeper will leverage technology to organize months, and sometimes years of data. They will also suggest and implement workflows to keep the books up to date going forward.
2. You do not know much money you are making or spending
· Have you ever been unable to cover your expenses at the end of certain months because you don’t have cash? If you don’t know your revenue, you cannot plan to increase it. If you do not track expenses, you cannot cut costs. And if you lack understanding of the total money coming in and out of your business, you open yourself to fraud. A bookkeeper can generate clear basic reports that show sales and expenses. In addition, they can provide a wealth of knowledge on how to grow revenue and reduce your costs, since they are familiar with the day to day operations.
3. You feel like you need a break from the grind
· You did not start your business so you could do paperwork. Hiring out your bookkeeping services can free up the time and mental clarity you need to focus on what you do best – running your company.
4. You’re only updating your books before tax season
· You’re always scrambling come tax time which can cause unnecessary stress. Many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you out during the rest of the year.
5. You’re overpaying an accountant to do your bookkeeping
· Bookkeeping and accounting are not the same. They’re more qualified than a bookkeeper, meaning you pay more for their services, even if they’re only doing your books. If you’re in this position, you’re overpaying for a service that a bookkeeper could do for less.
DIY approach to bookkeeping becomes counterproductive as our business grows. With growth comes new responsibilities and an ever-growing list of to-dos. At some point, something has to give, and you’ll need to hire a bookkeeper. It’s time to plan your next step. Start by checking out our guide to finding the right small business bookkeeping solution for your business.
Want to work with the BEST bookkeepers in Canberra? Come in and have a complimentary discussion with us today to see how we can help you achieve your goals. Contact us today at 02 8103 3065 or email@example.com.
About the Author
Justin Wong is the Financial Comrade at PAQ Group.
The mission of PAQ Group is to create a stress-free bookkeeping experience.
Join other entrepreneurs with the PAQ Newsletter to get regular insights on how you can grow both you and your business.