It’s the end of the month, and you’re scrambling to update your books, evaluate expenses, and track outstanding invoices. But you’d rather be managing client relationships and implementing strategies to boost sales. Even so, bookkeeping is one of those business functions you can’t afford to ignore or neglect.
You can only get away with DIY bookkeeping and accounting for so long as a small business owner. At some point, you’ll need to bring in some additional help. If you’re just starting out, you may be able to handle your own bookkeeping with a simple spreadsheet. However, as your business grows, your financials will only increase in amount and complexity.
Still, if you find yourself struggling with the thought of outsourcing such a vital aspect of your business, consider the following questions.
- Are you behind on your bookkeeping? Is maintaining accurate books becoming increasingly complex?
- Do you ever feel unsure about whether your tax filings are accurate?
- How much time do you spend on bookkeeping each month? How much time would you like to spend on bookkeeping? And how much time do you really have to spare?
These questions are meant to help you discover how urgently you need to bring a bookkeeping consultant on board.
When Does It Make Sense to Hire a Bookkeeping Consultant?
Bookkeepers can be a fantastic resource as you work to grow your business. The growth and expansion stage is where finances start to stabilize, allowing you to identify and evaluate trends somewhat. It’s a highly crucial stage, and this is when a bookkeeping consultant becomes an invaluable addition to your team.
Here are some signs that it might be time to hire a bookkeeper:
- You’re absolutely strapped for time
As a small business owner, there’s a premium on your time. Insisting on do-it-yourself bookkeeping could actually compromise your business profits. Your time is better spent nurturing customer relationships and other profit-making functions of your business.
- You’re always behind on your bookkeeping.
Bookkeeping is often the first function to fall by the wayside when entrepreneurs are strapped for time. When this happens, it becomes more challenging to make intelligent, data-driven business decisions as your books no longer reflect the actual state of your finances. For this reason, poorly kept books will inevitably lead to poor cash flow management.
- You’re missing out on tax write-offs
Or worse, you’ve missed important tax deadlines. Without a clean set of books, it is more challenging to figure out how much you need to pay, to whom, and by when, which could result in penalties and late fees. With a bookkeeping consultant on your team, you’ll find that tax season goes by more easily.
None of this means that you have to hire a full-time bookkeeper. However, costs are still a significant consideration, and not every small business can afford to bring someone on full-time. As a rule of thumb, a full-time bookkeeper only becomes necessary when a company has grown to between 30 and 50 employees and is topping over $1 million in revenue annually.
Contact Goode Bookkeeping & Consulting
Outsourcing your finances to Shannon Goode Bookkeeping could provide the reprieve you’re looking for. Contact us to find out how we can tailor our services to best suit your needs. You can reach us at (860) 659 6543 or complete our Contact Form to schedule your free consultation.